While this is a helpful point, I think it would be nice if this issue were framed more in terms of physical and mental health, not just as a question of how to optimise economic output. We need less cars for almost every possible reason you can think of.
I agree. But I would also counter that it is worth killing cars even if there were a measurable negative economic impact, because of all the clear benefits we would gain in exchange for it. But of course even these subtler benefits (like mental and physical health), would necessarily result in improved economic output overall.