TRANSPORT

Question 1

L4 points for evaluating a SUBSIDY + develop L3

Answer 1

1. PED

2. X / prod IE; p

Question 2

hypothecation of taxation

Answer 2

where revenues generated by a tax are directly allocated to some other purpose

Question 3

EE for subsidy

Answer 3

1. Paraphrase
2. Integrated + fare sub
3. Capital vs. fare
4. rising incomes

Question 4

Road USER CHARGING L3 (RRR)

Answer 4

1. road users: full social costs
2. ru pay t = MEC
3. internalises -x
4. MPC increase
5. diagram
   => band 2
6. reduced overC/P
7. AE
8. reduce DWL

Question 5

Road user charging / road pricing L4

Answer 5

1. Divergent => different charges?
2. Setting correct level = MEC
3. Size
4. Alternatives (PT sub) + integration
5. cost of enforcement/policing