Local government in Mumbai have come up with an inspired plan to cut noise pollution across the city. Fed up with honking drivers waiting at the city’s junctions, traffic lights have been installed with listening devices which can record the extent to which honking is taking place. If the devices perceive the honking to be too loud, the light will remain red and the drivers will have to wait for even longer!
This potentially ingenious solution could be an effective way of reducing the ear-deafening externality of Mumbai’s traffic problem. According to the TomTom traffic index Mumbai ranks as the fourth most congested city in the world. For those driving during rush-hour, it is estimated that drivers lose 209 hours stuck in traffic. That is over 8 days a year!
Tests are continuing across Mumbai and into other cities to measure the effectiveness of the new devices on reducing noise-pollution. Whilst the traffic problem will still exist, at the very least those more patient drivers can now sit and wait in peace!
THINK LIKE AN ECONOMIST!
Q1. What is the negative externality which is discussed in the article?
Q2. Explain why your answer to Q1 is a negative externality.
Q3. Analyse the impact that the policy discussed in the article is likely to have on reducing the negative externalities associated with high levels of congestion in Mumbai.
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