The University is now issuing free Wisconsin voter ID cards at Union South. Any US citizen who has lived at their address for a month by the time of an election, is eligible to vote in Wisconsin. There will be extended hours today (September 23, Voter Registration Day). Normally they will be issuing cards till. 5:00, but today they will be open until 8:00.

Lecture 7 Tuesday, September 23, 2014 Transportation

GLOBAL WARMING

Social processes underlying climate change and obstructing solutions 1.Hyper-consumerism 2.Collective action failure among governments 3.Negative externalities 4.NIMBY movements concerning clean energy 5.Power and climate denial

GLOBAL WARMING: Solutions? 1.Dramatically increase the costs of carbon emissions through carbon taxes in various forms (e.g. “cap-and-trade”) 2.Significantly expand Public investment in clean energy 3.Massive public funding for research in energy alternatives 4.Expansion of public transport. Free public transit? 5.Subsidized energy efficiency retrofitting of buildings 6.The biggest challenge: Shift towards a society less oriented to ever- expanding material consumption.

Implication All of these solutions require a reinvigorated democratic affirmative state

Lecture 7 Tuesday, September 23 Transportation

I. Some basic facts

% of Urban Trips by type of transportation (2005-9)

Trends in Annual public transit ridership in the U.S.,

Annual Per Capital Gas Consumption, 2003

Annual hours of delay per traveler due to traffic congestion

Annual cost of traffic congestion ($billions), 2011

II. Understanding the Problem

YOUR CHOICE BUSPRIVATE CAR EVERYONE ELSE’S CHOICE BUSA 25 minutes B 10 minutes PRIVATE CAR C 1.5 hours D 45 minutes The Public Transportation Free Riding Problem: Busses vs. Cars Free-riding preferences: B > A > D > C Free riding gain: 15 Minutes (A minus B) “Sucker penalty”: 45 minutes (C minus D)

YOUR CHOICE RAILPRIVATE CAR EVERYONE ELSE’S CHOICE RAILA 15 minutes B 10 minutes PRIVATE CAR C 25 minutes D 45 minutes The Public Transportation Free Riding Problem: Light Rail vs. Cars Free riding gain: 5 Minutes (A minus B) “Sucker penalty”: There is no sucker penalty!

III. Positive externalities of good public transportation

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

What are the positive externalities of good public transportation? 1.Quicker commuting times, less congestion 2.Saving on private car infrastructure (parking ramps, street repairs, etc.) 3.Less pollution: less frequent house painting 4.Health benefits (asthma especially) 5.More efficient labor market, especially for poor (easier to get to jobs), therefore less need for welfare 6.Less need for multiple cars in a family 7.Energy savings Key Question: What is the true economic value of the positive externalities of good public transportation?

IV. Why is Public Transportation so weak in the U.S.?

The LA Transportation Story as told in Who Framed Roger Rabbit?

V. Solutions

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

Gasoline prices and taxes in selected countries, 2012

Solutions 1.No free parking 2.Build infrastructure for transportation alternatives: bike paths, rapid transit, etc. 3.Increase residential density within cities 4.The full cost of driving should be reflected in gas taxes 5.Fully recognize the value of positive externalities in the price of public transit tickets. (Implication: perhaps tickets should be free).

No-Fare Public Transportation in Hasselt, Netherlands introduced July, 1997

Staten Island Ferry: free public transport

Cities with at least some free public transportation