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The Positive Externalities of Good Public Transportation

Explore the positive externalities of efficient public transportation, including reduced congestion, savings on infrastructure, less pollution, health benefits, improved labor market efficiency, and energy savings. Discover solutions for maximizing these benefits and assessing their economic value.

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The Positive Externalities of Good Public Transportation

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  1. Lecture 7 Thursday, September 23 Transportation

  2. % of Urban Trips by type of transportation (1995)

  3. Trends in Annual public transit ridership, 1900-2000

  4. Annual liters per person 1800 1600 1400 1200 1000 800 600 400 200 0 Central Middle East United Canada United Germany Europe France South Asia America & N. Africa States Kingdom America Annual Per Capital Gas Consumption, 2003

  5. Annual hours of delay per traveler due to traffic congestion

  6. 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)

  7. 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!

  8. The LA Transportation Story as told in Who Framed Roger Rabbit? http://www.youtube.com/watch?v=8DO5HzEWSkM&feature=related http://www.youtube.com/watch?v=gURUMv7qZW0&feature=related

  9. What are the positive externalities of good public transportation?

  10. What are the positive externalities of good public transportation? • Quicker commuting times, less congestion • Saving on private car infrastructure (parking ramps, street repairs, etc.) • Less pollution: less frequent house painting • Health benefits (asthma especially) • More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare • Less need for multiple cars in a family • Energy savings

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

  12. Solutions • No free parking • Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. • Increase residential density within cities • The full cost of driving should be reflected in gas taxes • Fully recognize the value of positive externalities in the price of public transit tickets.

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

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