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by s0uthPaw88
3390 days ago
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This is a classic externalities problem[0]: My use of roadway space imposes a cost on other drivers because they now have less roadway to use leading to lower speeds. Currently, I do not have to pay for this cost leading me to use more roadway space than may be optimal. Taxing roadway use captures this cost and forces me to take it into consideration when choosing whether to drive. [0]http://www.imf.org/external/pubs/ft/fandd/basics/external.ht... |
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