Response from :
Professor Fred Foldvary,
Dept. of Economics
Santa Clara University
USA.
Best Wishes,
Dave
Dave Wetzel
Vice-Chair TfL
Tel: 020 7126 4200
--------------------------
-----Original Message-----
From: [log in to unmask] <[log in to unmask]>
To: Paul Metz <[log in to unmask]>; 'land cafe' <[log in to unmask]>
CC: Sunita Narain ( CSE ) <[log in to unmask]>; [log in to unmask] <[log in to unmask]>
Sent: Sat Jan 13 16:27:29 2007
Subject: RE: [LandCafe] paying the cost of cars
> By Sunita Narain
> the cost of building a road.
This can be paid efficiently from a combination of
tolls and land rent.
Tolls should be just high enought to eliminate
congestion, and when not crowded,land rent is
efficient.
> two, the cost of maintaining roads, the
> cost of policing on the road, the cost of powering
> the millions of traffic lights.
Tolls and land rent can also pay these costs.
> Three, the crippling cost of local air
> pollution and bad health
> which requires monitoring, control and regulation.
These are best paid from pollution charges.
The pollution can be measured directly with remote
sensor devices.
See Daniel Klein,
"Fencing the Airshed: Using Remote Sensing to Police
Auto Emissions" in
THE HALF-LIFE OF POLICY RATIONALES: HOW NEW TECHNOLOGY
AFFECTS OLD POLICY ISSUES, F.E. Foldvary and D.B.
Klein, eds., New York University Press, 2003
> Four, the cost of
> congestion, which every motorist on a busy road
> imposes on fellow travellers
> - from delays that cost time, to increased fuel
> consumption that costs money.
Tolls can be collected electronically.
See the chapter on roads by Peter Samuels in Half-Life
of Policy Rationales.
> Five, the cost of space for parking vehicles,
> at home and at work.
Use electronic metering to charge just high enough to
eliminate congestion.
See the chapter by Donald Shoup, "Buying Time at the
Curb," in The Half-Life book
> We need to ask why economists - the ones who
> normally rant about markets,
> the need for full cost pricing and removal of
> subsidies - never account for
> these costs in their calculations of growth.
Some do, as in the Half-Life book.
Shoup has written a whole book on the full cost of
parking.
See also my article on "Efficiency Taxes" at
http://www.progress.org/2006/fold473.htm <http://www.progress.org/2006/fold473.htm>
Fred Foldvary
Dept. of Economics
Santa Clara University
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