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"The high up-front costs of roads are in fact due to the simple fact that it costs a lot of money to physically build a road. Further, consumers cannot use a road at all until a connection is completed, at which point the marginal cost of usage falls to zero." Does that mean airlines, breweries, aerospace should all be publicly funded? What about opening international banking operations? What about an inusrance IPO? "Even so, insofar as you are correct that environmental regulations add to those costs, that is entirely as it should be if building the road would impose social costs via its effects on the environment." What social costs? Congestion and pollution are spread more thinly. You previously stated that businessmen learn from their mistakes and revise their estimates if they become unprofitable. So the orads built privately would be socailly optimal. But your contention is pricing. With Govenrment funding, we don't know who funds what. The only reasonable model is a tollway. Which is silly because you have forced people to fund this. So they ar enot real prices.
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