1. The increase in congestion on Britain's Road's
... the roads of Britain. c) Evaluate the following possible government responses to the problem. (i) Increased taxes on petrol. The obvious answer is to increase taxation on the road user. Congestion is a negative externality and high taxes to internalize the externality seems to be the best way forward. ... it will be cheaper for them. Therefore if the government does not increase its taxes on petrol because it wants the public to vote for them in the next election, the government will have to find the money for improving roads and improving public transport from elsewhere. (ii) Road ... n...
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- Approx Pages: 7