The externality applies to residents who do not take public transit too. The two decisions should not be coupled.
If you want to do a Pigovian tax, do a Pigovian tax properly. If you want to do congestion pricing, make it budget neutral to users. If you want transfer payments, do that and call it that.
pishpash|1 year ago
If you want to do a Pigovian tax, do a Pigovian tax properly. If you want to do congestion pricing, make it budget neutral to users. If you want transfer payments, do that and call it that.