Lecture 7 Tuesday, September 25 Transportation Film about the destruction of the L.A. trolley system: Taken for a Ride

Slides:

Advertisements

Similar presentations

Externalities & Public Goods

Advertisements

Salt Lake City Downtown Transportation Master Plan Light Rail & Bus; Presentation Background and Introduction August 23, 2006.

Transport for Canberra 07 November2013. Transport for NSW: Regional Transport Plan ACT, whilst not part of the region, is an important destination Transport.

SCATTER workshop, Milan, 24 October 2003 Testing selected solutions to control urban sprawl The Brussels case city.

Employer-Paid Parking: A Matching Grant Employers pay for parking at work if the employee is willing to pay for driving to work Commuters who don’t drive.

Detroit, the Auto Industry and Globalization Industrial Era Ford, Chrysler, GM Turn of century- boom in auto-production Rapid expansion of population,

Transportation in Amsterdam Final Presentation. The Randstad.

Essential Question What role should government play in a free market economy? 1.

SR 50/UCF Connector Alternatives Analysis Orange County Board of County Commissioners January 13, 2015.

[Presentation Date] [Presenter Name, Organization, Title] The Need to Repair & Replace [Your Region’s]Transit Network Presentation to [Organization] [Insert.

© 2007 Thomson South-Western. Public Goods and Common Resources “The best things in life are free...” –Free goods provide a special challenge for economic.

The University is now issuing free Wisconsin voter ID cards at Union South. Any US citizen who has lived at their address for a month by the time of an.

Carbon Footprint Kerry Sophie. What is a Carbon Footprint ? A carbon footprint is “the total set of greenhouse gas emissions caused directly and indirectly.

Grade 12 Global Geography

Chicago: The Sustainable City? Alena Smalligan Melissa Bradley Ryan Bruder Alena Smalligan Melissa Bradley Ryan Bruder.

Public Expenditure Analysis May 4, 2007 Cost-Benefit Analysis: Seattle Link Light Rail, Initial Segment Your presenters: Annie Gorman Hazel-Ann Petersen.

By: Xsayvire Dametrius. 10 Principles of Smart Growth.

Externalities on highways Today: We apply externalities to a real-life example.

Urban Transportation 6. Introduction The major problem facing the transportation is congestion. The major problem facing the transportation is congestion.

SUSTAINABILITY CONCEPTS IN TRANSPORT SECTOR/ OPTIONS AND BENEFITS

American Free Enterprise

Transportation Personal Finance. Public Transportation Where you live has an impact on public transportation options. ▫If you happen to live in the city,

Southern Nevada Strong Consortium Committee Meeting April 18, 2013.

K.O.R.E. Enterprises Workshop Urban Transportation Systems 10/15/08.

TRANSPORTATION PLANNING. TOPICS 1.ROADS AND PUBLIC GOODS 2.RATIONALE TO JUSTIFY ROAD BUILDING 3.URBAN PLANNING AND TRAFFIC CONGESTION (UNINTENDED CONSEQUENCES)

Paul Roberts – TIF Technical Manager Presentation to the TPS – 3 June 2009.

1 Colorado Transportation Issues July 10, These unique polling results are based on 1,001 live telephone surveys among likely 2014 voters statewide.

Business Logistics 420 Urban Transportation Fall 2000 Lectures 5: Current Urban Development Patterns and the Transportation Challenge: Edge Cities.

Peak Car: implications for policy David Metz Centre for Transport Studies University College London.

The Commute Trip Reduction (CTR) Law.  The CTR Law requires major employers - in Urban Growth Areas throughout Washington - to implement an employee.

11. 2 Public Transportation’s Role in a Greenhouse Gas Reduction Strategy Kevin Desmond King County Metro Transit Division Seattle, WA On behalf of the.

AFF TOPIC LECTURE SCFI INCREASING TRANSPORTATION FUNDING Benefits.

KI 13-3 Why Do Inner Cities Face Distinctive Challenges?  Inner-city physical issues? Most significant = ___________ __________ (built prior to 1940)

GeniUS! Challenge #4 - Utilising footfall & transport 15/3/12 Andy D’Agorne.

Transit Alliance 4 Founded in Coalition of 39 groups 4 Local governments 4 Business organizations 4 Community groups.

Consumer Behavior & Public Policy Lecture #3 Microeconomics.

Jeff’s slides. Transportation Kitchener Transportation Master Plan Define and prioritize a transportation network that is supportive of all modes of.

Presentation to the Sustainable Prosperity Conference

Early findings in the Helena’s Planning Process Lisa Ballard, P.E. November 28, 2012.

1 THE FACE OF PUBLIC TRANSPORTATION. 2 Public Transportation in the U.S. Today Transit in every state in the Union Of the 464 urbanized areas, all but.

Business Logistics 420 Public Transportation Fall 2001 Lectures 15 Policy Issues II: Public Transportation and Energy Conservation.

Public Goods. Public Goods -- Definition u Public goods involve a particular kind of externality - where the same amount of the good has to be available.

TOPIC 9 ECONOMIC SUSTAINABILITY. The Definition of Economy The wealth and resources of a country or region, especially in terms of the production and.

Business Logistics 420 Urban Transportation Fall 2000 Lectures 6: Coping with Edge City Transportation Problems: Livable Cities, Transit-Friendly Land.

Professor: Keren Mertens Horn Office: Wheatley 5-78B Office Hours: TR 2:30-4:00 pm ECONOMICS OF THE METROPOLITAN AREA 212G,

KI 13-3 Why Do Inner Cities Face Distinctive Challenges?  Inner-city physical issues? Most significant = deteriorating housing (built prior to 1940) ○

CHAPTER 14 Government spending and revenue ©McGraw-Hill Education, 2014.

Rebecca Long November 9, Why is MTC interested in parking policies? 1.Land Use Impacts 2.Transportation Impacts 3.Other Regional Impacts.

Developing Nacka Henrik Feldhusen Manager sustainable development.

Land Use. 29% of the earth is land –29% forests and woodlands –27% range and pastures –11% cropland –33% tundra, marsh, desert, urban areas, bare rock,

GCAA Feb 17, Results 1.2 million miles of travel 600 tons of air pollution Each day these efforts reduce: Currently partnering with more than 1650.

Economics 101 – Section 5 Lecture #25 – April 22, 2004 Chapter 15 – Market Failures pp Natural monopolies Externalities Public goods.

Market Failures When adequate competition does not exist. In an age where mergers are all too common, the result has been an increase in larger and fewer.

Externalities on highways Today: We apply externalities to a real-life example.

Baseline Scenario Quality Growth Strategy.

Public Transportation Planning: Rapid transit solutions for adequate mass movement Mobility.

Urbanization Key Issue #4: Why do suburbs have distinctive problems?

The Advantage of a Single Shared Ride Concession at Small and Mid Size Airports AGTA 2008 Fall Conference James R Gleich Regional Vice President Veolia.

Public Transit Performance Measurement Measure What Really Matters Jerry Benson, Ph.D. Chief Operating Officer Utah Transit Authority September 13, 2010.

Economics 101 – Section 5 Lecture #26 – April 27, 2004 Chapter 15 – Market Failures pp Public goods.

Sociology 125 Lecture 8 Tuesday, September 28 Consumerism Extra Film showing of films this week Because of the problem of the film showing Monday night,

Business Logistics 420 Public Transportation Lectures 10 : Description and Critique of U.S. Federal Transit Programs.

Nothing But the Facts About Green Building, Density, and Climate Change.

CHALLENGES OF URBAN GROWTH November 6, 2009 Jose A. Gomez-Ibanez OUTLINE: 1.CITIES AND ECONOMIC GROWTH 2.HCMC PROBLEMS  GROWTH, CONGESTION, FLOODING,

Travel in the Twenty-First Century: Peak Car and beyond David Metz Centre for Transport Studies University College London.

The Gauteng Economic Indaba Transport and Logistics Mr Piet Sebola Group Executive Strategic Asset Development Date: 09 th June 2016.

Louis Wirth—1930s—defined a city as a permanent settlement that has three characteristics that make living in a city different from living in rural areas.

Agglomeration Economies

Lecture 7 Thursday, September 23 Transportation.

How Cities are Re-making Themselves

Presentation transcript:

Lecture 7 Tuesday, September 25 Transportation Film about the destruction of the L.A. trolley system: Taken for a Ride

% of Urban Trips by type of transportation (1995)

Trends in Annual public transit ridership,

United States CanadaUnited Kingdom GermanyEuropeFrance Central America Middle East & N. Africa South America Asia Annual liters per person Annual Per Capital Gas Consumption, 2003

Annual hours of delay per traveler due to traffic congestion

The LA Transportation Story as told in Who Framed Roger Rabbit? (first 2 minutes) (first 4 minutes)

YOUR CHOICE BUSPRIVATE CAR EVERYONE ELSE’S CHOICE BUSA 25 minutes B 10 minutes PRIVATE CAR C 1.5 hours D 45 minutes The Public Transportation Free Riding Problem: Busses vs. Cars Free-riding preferences: B > A > D > C Free riding gain: 15 Minutes (A minus B) “Sucker penalty”: 45 minutes (C minus D)

YOUR CHOICE RAILPRIVATE CAR EVERYONE ELSE’S CHOICE RAILA 15 minutes B 10 minutes PRIVATE CAR C 25 minutes D 45 minutes The Public Transportation Free Riding Problem: Light Rail vs. Cars Free riding gain: 5 Minutes (A minus B) “Sucker penalty”: There is no sucker penalty!

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Positive externalities & ticket prices 1.Suppose: (a) the direct costs of a ride = $3, and (b) there is some kind of negative externality = $1/ride 2.Then the true cost per ride = $4 3.To cover these costs, the ticket price should be $4, not $3. 4.Now suppose: (a) the direct costs of a ride = $3, and (b) there is some kind of positive externality = $1/ride 5.Then the true cost per ride = $2 6.So, the ticket price should be only $2 7.But the transit company has spent $3 in direct costs to pay for the ride. 8.Therefore the society has to somehow pay for the $1 of value everyone receives to reimburse the transit company for providing the ride.

Big Take-Home Message from lecture on Transportation For the free market to enable people to make efficient choices two things must be true : 1.There are no significant externalities – positive or negative – to your individual choice: what you chose does not affect other people. 2.The full range of feasible alternatives from which to make your choices can itself be provided by the market. Transportation violates both of these principles : People will make very different private choices depending upon whether or not there exists a good, efficient, cheap public transportation option, but the market itself can never provide this even if it would be economically efficient to do so.