"By comparison, building expensive transit systems aimed at getting people out of their less-expensive cars generates zero economic benefits if it generates no new travel. Only new travel generates economic benefits, so people who argue that new roads induce new travel are actually arguing that new roads create economic benefits.
If congestion is the issue, then–as Mann briefly mentions–the solution is congestion pricing. But Mann doesn’t understand the difference between true congestion pricing and New York City’s proposal for cordon pricing. Cordon pricing is more a way of raising revenue to fund urban boondoggles than a way of relieving congestion.
Even UC Berkeley planning professor Robert Cervero believes that the induced demand argument is “wrong headed.” “Road investments by themselves do not increase volumes,” he writes. “Only by conferring a benefit, like faster speeds, will traffic increase.” Provided that benefit is greater than the cost–something that could be assured, Cervero says, through proper pricing of roads–then it is a good thing."
"By comparison, building expensive transit systems aimed at getting people out of their less-expensive cars generates zero economic benefits if it generates no new travel. Only new travel generates economic benefits, so people who argue that new roads induce new travel are actually arguing that new roads create economic benefits.
If congestion is the issue, then–as Mann briefly mentions–the solution is congestion pricing. But Mann doesn’t understand the difference between true congestion pricing and New York City’s proposal for cordon pricing. Cordon pricing is more a way of raising revenue to fund urban boondoggles than a way of relieving congestion.
Even UC Berkeley planning professor Robert Cervero believes that the induced demand argument is “wrong headed.” “Road investments by themselves do not increase volumes,” he writes. “Only by conferring a benefit, like faster speeds, will traffic increase.” Provided that benefit is greater than the cost–something that could be assured, Cervero says, through proper pricing of roads–then it is a good thing."