[sustran] Externalities

Chris Zegras czegras at MIT.EDU
Mon Jul 9 22:44:03 JST 2001


Regardless of the incidence of externalities, the point is that the 
marginal price paid does not equal the full marginal cost, so travel 
decisions are inefficient, investment decisions are inefficient, etc.  We 
all lose - drivers or not.

CZ


Date: Fri, 6 Jul 2001 19:02:58 -0500
From: "Wendell Cox" <wcox at publicpurpose.com>
Subject: [sustran] Re: A bias against drivers?
 From the transport-groups mailing list....

Wendell,

I suggest that you make this gentleman aware of the Delucchi
article "Should we Try to Get the Costs Right?" and the University of
Minnesota research paper referred to by Shef Lang "The Full Costs of
Transportation in the Twin Cities Area".

Point out the size of the externalities and the fact that 90-95% or
more of the public on which externalities and government costs fall
are drivers or those who ride in cars. That leaves only 1-2% of the
overall costs to fall on those who don't drive or ride.

Bruce Gaarder
Saint Paul MN
bruce_gaarder at acm.org


--------------------------------------------------
Christopher Zegras
Research Associate
MIT * Laboratory for Energy & Environment * Room E40-468
1 Amherst Street * Cambridge, MA 02139
Tel: 617 258 6084 * Fax: 617 253 8013



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