[sustran] Re: WorldTransport Forum Economics of Traffic Congestionand TDM

[Lee Schipper]

I would argue that the "benefits to the poor man" SWAMP those to the
"rich man" because there are so many
poor women and men who benefit, vs a minority of rich -- of which by
definition there are only a few. There is also a middle
class, some  (many) of whom are in cars (two-wheelers). 

I met a man from Jakarta on the plane once who complained about the new
BRT corridor. He said (mistakenly) that the
BRT was bad for Jakarta because it slowed down traffic in cars. THe
rich are in those cars, he mused, and those are the ones
who make business and make the country go.

I don't see why we need a robin hood to take from the poor and build
roads for the rich. I also strongly believe in toll roads and
London-style schemes -- so those who move in th eir own vehicles pay
more than those who do not, irrespective of who is rich or poor but
drives a car.

>>> richmond at alum.mit.edu 7/20/2005 11:40:26 PM >>>

There are important questions about what wage rate to use in these
congestion measures if they are to be used in making decisions. The
income
of car owners is generally higher than those without cars, so in
choosing
who to give "benefits," calculations using income of beneficiaries
will
find that there is a greater "social benefit" from doing things that
help
the rich rather than the poor.

This is one of the ways that expensive metro rail systems can be
justified
over simpler bus alternatives, for example: it is argued that they are
more likely to take cars off the road, and the time savings to the
former
road users are valued highly. The social value of improving basic
urban
bus services for large numbers of people who depend on them is shown
as
far less, by comparison, because the poor earn only a fraction of the
income of car users and their value of time is said to be much less.

What do others think? Should we, in social decision making, regard the
benefits to a poor person as worth less than those of a wealthier
person?
If so, what sort of methodological change does that imply?

                                                           --Jonathan

-----

Jonathan E. D. Richmond                               02 524-5510
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