In the context of congestion pricing, what specific cost is identified as the 'externality' that conventional, free travel fails to account for?
Answer
The delay imposed on all other drivers
The externality is defined as the higher cost incurred by other road users when one additional vehicle enters a congested traffic stream, specifically the delay imposed on everyone else.
Related Questions
Who is credited with developing the foundational economic theory behind congestion pricing?What fundamental economic concept underpins Vickrey's theory for optimizing road usage pricing?In the context of congestion pricing, what specific cost is identified as the 'externality' that conventional, free travel fails to account for?Which city initiated one of the earliest real-world cordon pricing schemes in the early 1970s?What was the approximate initial base toll set for passenger vehicles entering New York City's proposed congestion zone?What critical dual goal did New York City aim to achieve by implementing congestion pricing?What did analysts note was the primary focus of political opposition during the New York City implementation struggle?What does the stalled implementation process in New York City underscore regarding congestion pricing adoption?What financial mechanism is suggested as crucial for gaining public buy-in regarding congestion charges?How did New York City's initial pricing plan compare to Vickrey's theoretical ideal regarding responsiveness?