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Category Transportation

Happy Park(ing) Day 2008

I guess I must not be hip enough to have known about this beforehand, but there’s a very interesting citywide event happening here in New York today called Park(ing) Day. All throughout New York City, people are reclaiming parking spaces for their street-side enjoyment. It’s a very novel idea that helps convey a very important economic point: the opportunity cost of public parking spaces. Of course, the users are gladly feeding the meters, so who could complain? Who says we can’t let the market decide the highest-and-best use for the spaces?! parkingdaynyc.org Here’s a video from last year’s event:

Another On “Conservatives” and Urbanism

While I sympathize with the theme and agree with regards to roadway spending and “conservative” hypocrisy, a recent article in the progressive The American Prospect takes a narrow-minded view of politics and urbanism, while throwing around broad generalizations about evolution and global warming to support their assertions: The Conservative Case for Urbanism In fact, one doesn’t have to be concerned about climate change at all in order to support such policies; values of fiscal conservatism and localism, both key to Republican ideology, can be better realized through population-dense development than through sprawl. Tom Darden, a developer of urban and close-in suburban properties, said Wednesday, “I’m a Republican and have been my whole life. I consider myself a very conservative person. But it never made sense to me why we would tax ordinary people in order to subsidize this form of development, sprawl.” Darden told the story of a road-paving project approved by North Carolina when he served on the state’s transportation board. A dirt road that handled just five trips per day was paved at taxpayer expense, with money that could have gone toward mass transit benefiting millions of people. “Those were driveways, in my view, not roads,” Darden said. I agree with Darden. However, so-called “progressives” fall into the same narrow minded trap when they support public transportation as a solution to global warming that “conservatives” fall into when they try to protect their auto-centric lifestyle. Many are really calling for more of the same top-down overspending on transportation infrastructure that will require a taxpayer bail out at some time in the distant future. Where is the rational voice trying to slow down overspending on all energy-reliant, sprawl-creating, redistribution of productive resources? While existing transit may be less bad environmentally in comparison to highways when looked at from a […]

Bike Sharing

My Other Bike is a Public Transportation System by Greg Beato at Reason.com: A bike delivers a strong sense of autonomy, too—stronger even than a car in many ways. It doesn’t, for example, require a license, registration, insurance. You aren’t beholden to routes or schedules. You go where you want, when you want. Unless the bike you’re riding is part of a bike-sharing program. Then your usage is more proscribed. Take, for example, SmartBike D.C., America’s first high-tech bike-sharing program. Launched in August, and, like Velib, funded by an advertising company (Clear Channel Outdoor in this case) in return for the right to advertise on the city’s bus shelters, the program currently consists of 120 bikes and ten docking stations, all of which are clustered within a relatively small radius downtown. For a $40 annual fee, users get a smart card that allows them to unlock a bike from its docking station and start contributing to America’s energy independence. Sounds like a great free-market solution. Right? Greg doesn’t think it’s so great: it’s like you own the bike, except you don’t. You’re not permitted to let someone else ride it. You’re not permitted to put too much stuff in the front basket. (The baskets are for “light goods” only.) You aren’t supposed to ride it in “inclement and dangerous weather.” You have to return it to very specific places at very specific times. If something on your bike breaks while you’re riding it, you aren’t supposed to take it to the nearest bike shop or attempt to make the repair yourself. Instead, you have to call SmartBike’s customer service line and wait for a repair person to respond to your request for help. At least when a bus breaks down, you can abandon ship and take destiny in your own […]

Block on Road Socialism

For quite some time, Economist Walter Block has been one of the more radical thinkers when it comes to advocating free market solutions. Many of his writings on roads and rent control are featured in the Links to Articles, Academic Papers and Books page. Today’s Lew Rockwell Podcast features an interview with Professor Block discussing Road Socialism. The interview begins with a discussion of the fact that certain socialist institutions exist in our supposedly free-market society, and Block mentioned that when he debated Milton Friedman, he accused Friedman of being a “Road Socialist”. Friedman eventually admitted, “Yes, I am a road socialist.” The discussion turns to deaths on highways, competition, congestion pricing, some history of private turnpikes and transit, eminent domain, and homesteading. Many of Block’s thoughts and ideas are highly controversial, but make for fantastic conversation. I can’t say I always agree with his point of view or ideas, but I like the unique perspective he brings that is always thought provoking and sparks interesting debate. I encourage readers to listen to the podcast and discuss their thoughts on the podcast. Also, check out his recent lecture at FEE on Privatizing Roads and Oceans, and articles on rent control and highways.

Urban[ism] Legend: Gas Taxes and Fees Cover All Costs of Road Use

No doubt, mass production of the automobile is one of the greatest innovations of all times. It has allowed for increased mobility of goods and people, which has greatly improved productivity and leisure. But, is subsidizing mobility at the expense of taxpayers taking things too far? In various blogs and forums, I frequently come across the argument that the costs of automobile use are fully (or mostly) internalized through gas taxes and fees. Often, this argument is used by free-market impostors against transit subsidies, or by automobile enthusiasts in defense of highway socialism. The usual argument is that the costs of roads and infrastructure are paid through gas taxes, and thus the users of the roads are funding what they use. This is a powerful and pervasive myth that will continue to distort the truth, unless serious scrutiny is given to the assertion. Let us first examine the validity of the assertion through studies of the explicit costs (actual dollars) of roads in the US and the taxes and fees collected. Next, we will look deeper and discuss the implicit costs (ie opportunity costs) of roads and automobile use as well as acknowledge externalities involved with automobile use. The Explicit Costs We can see the extent of the Urbanism Legend by looking at wikipedia: Virtually 100 percent of the construction and maintenance costs are funded through user fees, primarily fuel taxes, collected by states and the federal government, and tolls collected on toll roads and bridges.[citation needed] (The claim that only 56 percent of costs are funded by user fees is based on the misinterpretation of a table that applies to all highways, roads, and streets, not just the Interstate Highways.[citation needed]) In the eastern United States, large sections of some Interstate highways planned or built prior to 1956 are […]

Boudreaux: Roads Don’t Need New Taxes

Don Boudreaux to the Washington Times: LETTER TO EDITOR: Roads don’t need new taxes Thursday, July 24, 2008 Upset that Virginians’ taxes were not recently raised to construct more roads, State Delegate Brian J. Moran, Alexandria and Fairfax Democrat, declares that “Government has an important role to play in strengthening our infrastructure, developing our economy and creating new jobs” (“Virginia’s transportation conundrum,” Op-Ed, Tuesday). Not so fast. Infrastructure that we today naively suppose must be supplied by government has in the past often been supplied by the private sector – supplied so well, indeed, that these private-infrastructure projects helped to spark the Industrial Revolution in 18th-century Britain. Harvard University historian David S. Landes explains: “At the same time, the British were making major gains in land and water transport. New turnpike roads and canals, intended primarily to serve industry and mining, opened the way to valuable resources, linked production to markets, facilitated the division of labor. Other European countries were trying to do the same, but nowhere were these improvements so widespread and effective as in Britain. For a simple reason: nowhere else were roads and canals typically the work of private enterprise, hence responsive to need (rather than to prestige and military concerns) and profitable to users…. These roads (and canals) hastened growth and specialization.” DONALD J. BOUDREAUX Chairman Economics Department George Mason University Fairfax Also, Cafe Hayek – Infrastructure and the State (by Don Boudreaux) for some good discussion in the comments.

Ikea Provides Private Transportation, Santiago-Style

[photo: flickr: moriah] In a perfect tie-in to yesterday’s EconTalk podcast on public transportation, Ikea’s new Brooklyn store provides free bus and ferry service to locations in Brooklyn and Manhattan. Not only is it free, but it’s nicer than the $2/ride public alternative. Most interestingly, neighbors of the new store in the Red Hook neighborhood are using the buses to commute to work and get around town. When I first heard of this I thought riders would have to show a receipt or prove they are a customer, but Ikea is happy to provide this service to anyone! What a great neighbor… New York Daily News – Commuters using Ikea shuttle bus to bypass MTA routes The posh, coach-style shuttle buses, equipped with footrests, reading lights and music, are quickly becoming popular with travelers tired of shelling out $2 for overcrowded – and, by comparison, uncomfortable – city buses. “It’s like a free car service,” said Bianca Colon, 19, who works at a summer program at Public School 27 on Huntington St. in Red Hook, and takes the bus from downtown Brooklyn near her home. “It takes us straight downtown and I don’t have to wait for the bus to stop every block to let people on and off.” “It’s such a nice ride, I’d almost be happy to pay for it,” said Steve Riley, 40, who lives in Park Slope, takes the Ikea bus and then transfers to the Ikea water taxi for his job in SoHo. “It was so very different from the miserable experience of the subway and I got to see all four of the waterfalls.” Brooklyn News found last week that only eight of 19 passengers on the first shuttle ride entered Ikea – and two of them were employees. “I’d say before one o’clock, […]

EconTalk Podcast on Public Transportation

I regularly listen to Russel Robert’s EconTalk podcasts. This week’s podcast with Michael Munger from Duke University is particularly interesting, and possibly my favorite, along with the Milton Friedman interview. Photo by Flikr user Silvia Sugasti Professor Munger had just returned from Santiago, Chile with some great insight into their transportation system. Up until a few years ago, Santiago had a completely private systems of transit and buses. He claimed that there were 3,000 different private companies operating transportation. The unsubsidized system worked very well and was profitable, until the city took over the transportation industry and forbade private companies from providing any transportation services. At the time the City took over, the planners thought they could improve the system by directing people to the subway system. It didn’t work, and now it’s a mess. photo of crowds cramming into a subway station by flickr user Thokrates I highly recommend taking an hour during your next commute to listen to the podcast. EconTalk Podcast – Munger on the Political Economy of Public Transportation Michael Munger of Duke University talks with EconTalk host Russ Roberts about Munger’s recent trip to Chile and the changes Chile has made to Santiago’s bus system. What was once a private decentralized system with differing levels of quality and price has been transformed into a system of uniform quality designed from the top down. How has the new system fared? Not particularly well according to Munger. Commuting times are up and the President of Chile has apologized to the Chilean people for the failures of the new system. Munger talks about why such changes take place and why they persist even when they seem inferior to the original system that was replaced.

Unintended Consequences of Stop Signs

The latest edition of the Atlantic Monthly features an article by John Staddon, a Professor of psychology and brain sciences at Duke University. The article discusses some of the differences in how the US and Britain regulates traffic and how there are unintended consequences to over-regulation. Distracting Miss Daisy: I began to think that the American system of traffic control, with its many signs and stops, and with its specific rules tailored to every bend in the road, has had the unintended consequence of causing more accidents than it prevents. Paradoxically, almost every new sign put up in the U.S. probably makes drivers a little safer on the stretch of road it guards. But collectively, the forests of signs along American roadways, and the multitude of rules to look out for, are quite deadly. Economists and ecologists sometimes speak of the “tragedy of the commons”—the way rational individual actions can collectively reduce the common good when resources are limited. How this applies to traffic safety may not be obvious. It’s easy to understand that although it pays the selfish herdsman to add one more sheep to common grazing land, the result may be overgrazing, and less for everyone. But what is the limited resource, the commons, in the case of driving? It’s attention. Attending to a sign competes with attending to the road. The more you look for signs, for police, and at your speedometer, the less attentive you will be to traffic conditions. The limits on attention are much more severe than most people imagine. And it takes only a momentary lapse, at the wrong time, to cause a serious accident. The tragedy of the attention commons concept reminded me of a video I recently came across on youtube called “Awareness Test.” In fact, the article refers to the […]

$5 Gas and Commuting Costs

Environmental and Urban Economics – Commuting Cost Arithmetic When people work in the suburbs, will they save many gallons of gasoline if they move to the center city? Yes, they will be closer to their center city friends and stores but they will still need to reverse commute by car to their jobs (unless they can ride the Google Bus from Center City San Fran to Mountainview). So this raises the question of whether high gas prices will push employers to move back to the center city? Employers who need land (think of Google) will be unlikely to want to rent out 35 stories of a skyscrapper. Total One Way commute cost = price of a gallon of gas + hourly wage Case #1: you make minimum wage = 5 + 7 = 12 and the share of expenditure on gas = 5/12 Case #2: Ivy League graduate = 5 + 100 = 105 and the share of expenditure on gas = 5/105 So this simple example highlights how the wage can swamp the price of gas for the high skilled but for the less educated, gas is a huge part of the commute cost. Interesting point. CBDs tend to attract highly talented workers, who tend to earn higher salaries. So, will those people have the incentive to move closer? Probably not much. However, there are plenty of middle wage workers who commute to CBDs, and may be tempted to locate closer. But, a firm that desires to attract the most talented workers will most likely locate in the CBD anyway. Thus, I wouldn’t expect as much difference in firm location preference, compared with the shifts in housing location preference. Those who work in suburban locations may end up moving closer to their jobs, making living patterns more compact near […]

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