Question

UF parking and transit is currently considering 3 main ways to deal with congestion on campus: 1) create more bus routes; 2) make more parking lots/garages on the perimeters of campus; 3) create more on-campus housing. Answer the next 2 questions related to this: 4. Describe the economics behind each of these options by clearly defining the costs and benefits of each scenario. Full credit will be awarded for full consideration of the opportunity costs associated with each option. (3 points) 5. Do you think that the 3 options presented above will help with congestion on campus? Explain fully why or why not for each of the 3 options. What other options might be more effective/viable? (hint: consider PRICES of existing infrastructure) (3 points)

Answer 1

4. 1) More Bus routes.

This will benefit the people who prefer public transport. However, the extra costs associated with these are the new buses, bus stands, maintenance and staff for the same. The opportunity cost associated with this is the costs incurred by travelling with private vehicles. Also the opportunity cost of extra travel time shall be considered.

2) More parking lots/ garages on campus

This will definitely benefit the people but will create more congestion as those who at present avoid vehicles due to parking issue will now have an incentive to get more vehicles.

The new costs associated will be in the form of new parking spaces constructions, attendants for the management etc. The more vehicles on campus and hence more congestion and pollution will prove to be an opportunity costs.

3) More on campus housing

This is surely going to benefit the process. This will lead to less congestion as  the on campus people can commute by foot thereby reducing the congestion. This also however, incurs a lot of costs in building extra housing. The opportunity cost associated is linked to the people who shift to the new housing leaving the previous one.

5.   I think that proposals 1 and 3 would help in reducing congestion on campus. The second suggestion i.e. providing more parking space would encourage even more traffic. Providing more bus routes will encourage more usage of public transport and providing new on campus housing will lead to reduce transport usage.

Other options that can be looked at it increasing allowance/entry charges for outside vehicle on campus. Promoting environmental friendly transport using solar energy etc and educating people about pollution and congestion on campus.