Why do cities use supply side strategies to mitigate traffic congestion externalities

@article{Rhoads2006WhyDC,
  title={Why do cities use supply side strategies to mitigate traffic congestion externalities},
  author={Thomas A. Rhoads and J. Shogren},
  journal={Economics Letters},
  year={2006},
  volume={92},
  pages={214-219}
}
  • Thomas A. Rhoads, J. Shogren
  • Published 2006
  • Economics
  • Economics Letters
  • Abstract For traffic congestion arising from sprawl, planners prefer supply side strategies over the demand side strategies recommended by economists. Our model provides a rationale why: wealth-induced congestion increases a planner's social discount rate, which decreases future costs of supply side solutions. 
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