Rationing can backfire : the day without a car in Mexico City
In 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.
|Date of creation:||31 Dec 1995|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eskeland, Gunnar S, 1994. "A Presumptive Pigovian Tax: Complementing Regulation to Mimic an Emissions Fee," World Bank Economic Review, World Bank Group, vol. 8(3), pages 373-394, September.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Berndt, Ernst R. & Botero, German, 1985. "Energy demand in the transportation sector of Mexico," Journal of Development Economics, Elsevier, vol. 17(3), pages 219-238, April.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1554. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.