In London,any Motorist Entering a Particular Area in the City

question 78

Multiple Choice

In London,any motorist entering a particular area in the city centre during certain specified times must pay a congestion fee equal to £11.50 per day,with fines for noncompliance rising to as high as £130.The congestion fee is:

• A) a Pigouvian subsidy aimed at encouraging the use of city streets.
• B) an attempt to internalize the costs of traffic delays and congestion.
• C) the wrong policy tool for solving the problem of congestion;instead,motorists should be allowed to make deals to determine when and where they are permitted to drive.
• D) likely to cause marginal private benefit from road use to decrease.

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Definitions:

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