Lynne Kiesling
In the five-plus years of Knowledge Problem’s existence, one of the topics on which I have opined extensively is the efficiency and conservation benefits of congestion pricing. Recently, Mike had two great posts on congestion pricing, one on how economists don’t understand the opposition to congestion pricing, and one on the unwillingness of intransigent airlines to acknowledge the benefits of congestion pricing for takeoff and landing slots and for gates.
The new Reason.tv project with Drew Carey contributes to the idea of congestion pricing for roads with an outstanding short video called Gridlock: Hell on Wheels:
Oh, but the aviation director of the Port Authority says that demand at peak travel time is perfect inelastic:
“Airlines say congestion pricing is just another tax on a financially ailing industry that’s already heavily taxed. Another problem is that since so many people want flights at peak times, the government may not be able to levy fees high enough to really affect scheduling.
“There is no price that you could put in effect that would impact demand,” says Mr. DeCota of the Port Authority.”
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