The unbridgeable gap
Article Abstract:
Traffic congestion is often seen as an example of markets not functioning properly because personal costs do not take into account wider costs, and externalities occur. It is difficult to assess the cost of these externalities such as wasted fuel and the time spent by drivers in traffic jams. Uncongested roads could be seen as underused resources, and driving can bring social benefits such as allowing shoppings a greater choice of store location. Individual preferences vary, so the cost to individuals cannot always be calculated. Investment in one form of public transportation could lead to less usage of another form, so the net gain for public transportation cannot easily be assessed.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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California dreamin.'(traffic congestion and market failures)
Article Abstract:
Traffic congestion is sometimes seen as an example of a market failure, and tax increases are proposed as a way of tackling this failure. There are problems with this proposal, however. Accidents and infrastructure damage are also social costs arising from car driving, not just congestion. Assessing the social cost of individual journeys is complex. The tax increases needed to control traffic are also likely to be large. The problem may solve itself as the increase in the working population ceases to grow, and more people become teleworkers.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Commuting: all jammed up
Article Abstract:
Traffic congestion has increased with urbanization and increased prosperity, which mean that car journeys are longer and more people own cars. Household numbers have increased in richer countries, which increases car ownership. Greater usage of cars means that people can live further away from work places, schools and shops. Traffic congestion brings costs but also reflects greater freedom of choice, and is not seen as a serious problem by many f the public.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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