11.15.2009

Ideas that Don't Work In American - Congestion Pricing

Count this one under ideas that probably wouldn't go over so well in America.

The Dutch government is trying to get legislation through its Parliament regarding a pay as you go tax on automobiles. It is an economically interesting method to reduce congestion and emissions based largely on the idea of internalization of externalities. The idea is not entirely new, as some European cities have congestion pricing plans in place. Additionally, there are plans currently being worked on in US cities regarding congestion pricing, though a Manhattan plan was scrapped a few years back.

However, those currently in place are based on checkpoints at times of heavy traffic, while the Dutch plan would rely upon tracking devices to tax driving no matter where or when it happens. It is hard to imagine Americans being on board with such a plan, due to privacy reasons almost as much as pecuniary concerns. However, it would hardly be the only area where differences could be identified between the two nations. . .

2 comments:

  1. Dude, DC congestion would clear up if we just had SEQUENTIAL lights on the main drags! Stupid DC.

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  2. Excellent point...I think Constitution is a great example of this. Sometimes it isn't the worst thing in the world to be car-less.

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