Sep 23, 2013

Price System, Traffic Congestion, and Crime

Traffic is bad and getting worse in cities around the world, with some exceptions. Many economists propose charging a fee to drive a car in certain roads and times. The benefits are obvious, a price will make driving more expensive and less cars will be circulating. People on average will spend less time in traffic. That is pretty straight forward. The idea is to reduce congestion costs that we impose on others because of the traffic we all create. 

Contrary to what we might expect charging a fee might also reduce inequality. The money that is collected can be used to improve public transportation and security, which could lead to less crime. In dangerous cities in Latin America that can be very helpful. 
In Guatemala City thieves on motorcycles take advantage of heavy traffic to rob car occupants, and sometimes robbers kill the victims. Robbers look especially for cellphones which can be easily resold in a secondary market. 

No comments:

Post a Comment