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Although congestion pricing is still not very common, many of the cities that have attempted to imple- ment congestion pricing typically charge a fixed fee
Although congestion pricing is still not very common, many of the cities that have attempted to imple- ment congestion pricing typically charge a fixed fee for driving near the central business district during rush hour times. For example, if you want to drive downtown from 7:30 AM to 9:30 AM or from 4:00 PM - 6:00 PM on weekdays, you must pay a flat fee of $X. 6.1 Using a diagram, explain why this flat congestion charge is potentially better than driving without a congestion tax. In the diagram, assume that the charge would be implemented for using a fixed route. 6.2 Although a fixed charge is simple to explain and understand, is it the optimal approach to con- gestion pricing? Why or why not? Although congestion pricing is still not very common, many of the cities that have attempted to imple- ment congestion pricing typically charge a fixed fee for driving near the central business district during rush hour times. For example, if you want to drive downtown from 7:30 AM to 9:30 AM or from 4:00 PM - 6:00 PM on weekdays, you must pay a flat fee of $X. 6.1 Using a diagram, explain why this flat congestion charge is potentially better than driving without a congestion tax. In the diagram, assume that the charge would be implemented for using a fixed route. 6.2 Although a fixed charge is simple to explain and understand, is it the optimal approach to con- gestion pricing? Why or why not
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