ABSTRACT

Urban transportation issues are in the face of many people who commute each day to jobs at some distance from their homes. Gridlock is a common term of frustration for urban dwellers. Tokyo is famous for having pushers at subway stops assigned to squeeze one or two more riders into each transit car. London has become famous for its congestion charge on a vehicle entering the city center. Our analysis of urban transportation starts with demand analysis-what factors determine which mode of travel a commuter chooses in her commute to work. In only five US cities in 2006 did 30 percent or more of commuters use the available mass transit (the five are New York, Jersey City, Washington, Boston and San Francisco). We map the areas of heaviest auto and transit use in Toronto, Chicago and Houston below. Demand analysis explains this phenomenon of the generally light use of mass transit. Users consider time costs, out-of-pocket costs and the quality of the experience of the trip when choosing a mode for their regular travel in their city. These dimensions of mode choice are measurable. We then take up the simple economics of charging road users a congestion tax in order to lighten use of a road-to speed the flow at rush hour. Economists have differing opinions about the merits of congestion charges. We also consider charging vehicles a tax for entering the center of a large city. And we turn to the issue of paying for the construction and maintenance of mass transit in different parts of the world.