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Dec 14, 2016

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8 thoughts on “Yes, we need to introduce congestion pricing. Here’s how to do it.

  1. phonakins

    Sounds like an emissions trading scheme?

  2. Decorum

    Economists – good ones, anyway – do not think it fair that poor people should be hardest hit by congestion pricing. Rather, they acknowledge that any validity of their views on fairness follows from their citizenship, not from their profession, so they have no more (or less) merit than those of the next person. So good economists do not typically share their own views on fairness when they write as economists. (And yes, the implications of the contrapositive hold: the Gittinses and Dennises of the world who do happily bang on about fairness when writing as self-declared professionals are not, IMO, good economists.)

  3. Raaraa

    I can never understand the discussion around distance-based road pricing. Why penalise outer-suburban and rural people for driving long distances? They don’t have much in the way of alternatives such as PT.

    London and Singapore’s road pricing scheme hits congestion where traffic is heaviest, right in the city (provided alternatives are provided in the form of PT and/or freight rail, otherwise it is just an exercise in revenue raising).

    1. Jason Murphy

      It’s interesting that charging for roads is seen as a penalty, when charging for electricity, water and bread is seen as normal.
      We view roads differently, for two reason. One, they’ve always been free, and two, the alternatives to using them are often poor or non-existent.
      I used to think changing this mindset was the answer. My piece above concludes that working within it is necessary…

  4. drsmithy

    Things go to a person who can afford them, rather than a person who wants it more in any sort of raw sense.

    “Want” ? Are you sure you don’t mean “need” ?

    Poorer people tend to live further out.

    It’s not just that. Poorer people also tend to have more need for vehicles and much less flexibility to change their routines due to multiple part-time jobs, shift-work, single parent families, etc.

    If only there were some other way to impact congestion. Like, say, reducing the number of people in a given area ?

    1. Jason Murphy

      Tell me more about your depopulation scheme! sounds …frightening.

      1. drsmithy

        Incentivising people to live somewhere other than one of the big capital cities is frightening ?

        I assure you that even in towns of only ten thousand people, they still have electricity, running water and internet.

        1. Jason Murphy

          I used to work in the regional development section of the victorian government and I can tell ya. Getting people to move away from their families and away from a diversity of jobs is like pushing viscous matter up a gradient.
          But it is nt just a tough policy problem, it is an idea that could have extremely pernicious unexpected side effects. Turns out growing your big cities can be very good for the people in them in non-traffic-related ways.
          A lot of research suggests that the bigger a city is, the higher its average productivity. (the term that captures this whole field of thought is agglomeration economics.) This suggests making very effective big cities is a shortcut to raising Australian wealth and well-being.