Suppose that the Department of Transportation has advanced a proposal to install scanners along roadsides and I.D.s

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Suppose that the Department of Transportation has advanced a proposal to install scanners along roadsides and I.D.s on the sides of cars and trucks, much like universal product codes used in grocery and department stores. The scanners would sense the presence of cars and automatically charge the registered owner of the car or truck the appropriate congestion toll when congestion is present. In the absence of congestion no toll is charged.
a. Use a diagram like Figure 8.9 to explain the nature of the congestion toll that should be charged.
b. Explain how this proposal solves the problem of congestion.
c. Discuss how you think this proposal would be received by drivers.
d. Anticipate ways that drivers would try to avoid paying the congestion toll (both legal and illegal).
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Public Finance

ISBN: 978-1111526986

2nd edition

Authors: John E. Anderson

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