lect03-02-10 - Mass Transit in the U.S some government tax...

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Unformatted text preview: Mass Transit in the U.S. some government tax policies that favor cars 70% of federal gas tax goes to highways parking expenses incurred by employers are tax deductible possible ways of favoring mass transit higher taxes on cars (or gasoline) road-pricing (see Economist article "Living with the Car") greater subsidies for mass transit, less for cars more public investment in mass transit Market for Cars Price of Cars (in $10,000) P5 4 3 2 1 S=MC D 10 20 30 40 50 60 70 80 Quantity of Cars (in millions) o Q Market Outcome vs. Socially Desirable Outcome Price of Cars (in $10,000) MSC = MC + MEC S=MC P$5 4 3 2 1 MEC { D o 10 20 30 40 50 60 70 80 Quantity of Cars (in millions) Q Land-Use Planning in Urban Areas urban growth leads to high land values and high property taxes owners of open-spaces (including ecologically sensitive lands and farms) come under pressure to sell their land or convert it to alternate uses as open-spaces and farms start to disappear, urban residents put higher values on their existence proper land-use planning helps avoid costly mistakes - city parks, greenbelts, cluster development Land-Use Planning in Urban Areas Cluster Development: houses or apartments are built only on some part of the land at least 30% land is left as open space, parks, and paths for cycling and walking Policies for Preservation of Open-Space, Ecologically Sensitive Land, and Farmland Taxes & subsidies to influence land use Zoning & other prohibitive regulations Tradable development rights Land trusts http://www.landtrustalliance.org/conserve/aboutland-trusts Conservation easements See Boyd, Caballero, and Simpson "Carving out Some Space: A Guide to Land Preservation Strategies" Resources, 1999 ...
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