Economics and Innovation

I picked up friends at the airport last Friday and spent part of the time stuck in traffic wondering how Chris’ classes would help partially address this public problem.

Today I came across this online debate over “light rail transit in Honolulu” and ended up writing the text below. Looking forward to hearing from your perspectives.

Cheers,

http://www.808talk.com/2008/06/19/start-or-stop-light-rail-transit-in-honolulu-you-decide/comment-page-1/#comment-259531


I have seen on freeways many cars with only the driver in them. I wonder what it would be if drivers had given a ride to other commuters and half of these vehicles occupying every centimeter of public areas would have stayed home. There would certainly be more space allowing traffic to flow faster. The question, however, is: How to encourage drivers to give rides to other people? Which structure would be necessary to implement this idea? Can technical issues be addressed?
My answer for these questions is “Yes”. There is a way to encourage drivers to give rides. The system required is significantly less costly than investments in public transportation systems. Technical problems would be solved by tapping into state-of-the-art technology and providing training to police officers. The solution is the combination of tax incentives with an extensive network of smart park meters.

A short narrative illustrates this proposal.

John gives a ride to Paul in the morning. Before getting into John’s car, a park meter reads Paul’s and John’s cards. On the way, John picks up Maria. Maria’s and John’s cards are also read by a close meter. John arrives downtown and drops off Paul. Paul’s and John’s cards are read by another smart park meter. Maria’s card is also read after being drop off in front of the building where she works. John arrives at his office and checks online how many kilometers he has saved by preventing two cars being out on the streets that morning and how much he has contributed to reduce the emission of carbon dioxide and global rising temperatures. Finally, John checks how much credit he has just earned and predicts further financial gains through tax reductions in the next fiscal year or monthly deposits in his bank account.