Congestion Pricing in Israel

Dec 22, 2009 • Thinking Economically • 175 Views    No Comments

Run privately, guaranteeing 70kph (43.5 mph), a toll lane will be created on a busy Israeli road. More traffic–price up; less traffic, price drops. Another solution to the tragedy of the commons.
To read more, go to http://www.jpost.com/servlet/Satellite?cid=1260930882954&pagename=JPost/JPArticle/ShowFull

Should we be concerned that a toll road is regressive?
Regressive: those who are less affluent pay a higher percent of their income than those that earn more.

Tragedy of the Commons: When a resource is shared by many rather than privately owned, it tends to be “misused” or “overused”. For a pasture, “misuse” is over grazing; in the ocean, fish populations are depleted; in the air, factories pollute.

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