Question
3. City planners have proposed changing one lane on a highway to an electric-only lane in an attempt to reduce carbon emissions and commute times.
3. City planners have proposed changing one lane on a highway to an electric-only lane in an attempt to reduce carbon emissions and commute times. To drive in this lane, travelers must be driving in an electric vehicle. (a) If the electric-only lane is implemented, how may this impact the sales of electric vehicles? Briefly explain. (b) Provide two externalities that may result from the implementation of the new electric-only lane. Briefly explain and indicate whether the externality is positive or negative. (c) A local newspaper has written an article regarding the proposed electric-only lane, exclaiming: "City planners should implement an electric-only lane to reduce carbon emissions." Is this an example of a positive or normative statement? Briefly explain.
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