Sunday, January 4, 2009

Price Signals

The Vine writers over at the New Republic discusses the end of unlimited driving insurance. They discuss how it could have a greater impact on driving than even the climate bill or energy taxes. I tend to think that the more we can get people to pay the true cost of driving, the more it will change policies that encourage walkable land uses and alternative modes of transport such as biking, walking and transit.


kenf said...

Looks like the Rand Corp. agrees with this:

According to the article, only congestion pricing, tolls and properly priced parking can cut down on congestion, and I guess total VMT.

Richard Layman said...

I agree about price signals, but not about insurance. One of the problems with the point that undergirds this argument is that more driving for many drivers helps them be more experienced, more careful and therefore safer, justifying reduced costs. It's not just a matter of driving more as creating more risk, and therefore presumably greater charges for insurance under this scenario.

Of course, I might just be saying this due to my belief that my being an infrequent driver means that I am less skillful when I do drive.