| It is widely perceived that projected public spending on transportation infrastructure in the metropolitan Washington, DC, area for the next 20 years will not be enough to halt, let alone reverse, the trend of increasing traffic congestion. Consequently, there has been much debate about how additional sources of local revenues might be raised to finance more transportation spending. This paper develops and implements an analytical framework for estimating the efficiency costs of raising $500 million per annum in local revenue from five possible sources. These sources are increasing labor taxes, property taxes, gasoline taxes, transit fares, and implementing congestion taxes. Our model incorporates congestion and pollution externalities, and it allows for... |
