Rationing can backfire : the day without a car in Mexico City
AbstractIn November 1989, Mexico City's administration imposed a regulation banning each car from driving on a specific day of the week. The regulation has been both popular and controversial. Some feel that it is a reasonable concession aimed at alleviating congestion and pollution problems. Others feel it is both inefficient and unfair: inefficient in the way most rationing systems are inefficent, and unfair in that it is costly to some and easily avoided or accommodated by others. Some feel that it may also be so inefficient that it is counterproductive. The authors found evidence to support that view. Many households bought an additional car to get additional driving permits, and the amount of driving increased. Greater use of old cars and increased weekend driving may have contributed to the disappointing results of Mexico's one-day ban on driving: high welfare costs and none of the intended benefits.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1554.
Date of creation: 31 Dec 1995
Date of revision:
Roads&Highways; Economic Theory&Research; Environmental Economics&Policies; Financial Crisis Management&Restructuring; Country Strategy&Performance; Economic Theory&Research; Environmental Economics&Policies; Roads&Highways; Financial Crisis Management&Restructuring; Transport and Environment;
Other versions of this item:
- Eskeland, Gunnar S & Feyzioglu, Tarhan, 1997. "Rationing Can Backfire: The "Day without a Car" in Mexico City," World Bank Economic Review, World Bank Group, vol. 11(3), pages 383-408, September.
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