Your cost, my benefit
Max Borders explains today why Charlotte's new commuter train system is wildly popular among train enthusiasts:
"If you could spread 50 percent of the costs of something big, new and shiny for yourself over millions of other people and get away with it, wouldn't you? It's a phenomenon called 'concentrated benefits and dispersed costs' ..."
The set-up will be similar in the Triangle, where a proposed $2 billion light-rail system will be funded according to this formula: half local money; one-fourth state sources; one-fourth federal sources.
"Bubba" raised the cost-benefit question in relation to the proposed Downtown Greenway at our Your Voice blog the other day.
I answered with doubts about how you put a dollar figure on a greenway's benefits.
Of course, he was getting at a valid point -- the same one Borders raises with much more specificity. However you calculate the benefits, they will be enjoyed by the relative few and paid for by the many.
As an avid jogger, I use and appreciate greenways. I derive substantial benefit but pay very little of the cost. I certainly recognize that the vast majority of taxpayers, who cover most of the costs, don't use greenways and therefore get little if any benefit from them. So, from my perspective, it's a matter of my benefit, your cost. Hey, works for me. And that, of course, illustrates the special interest mentality.
I happen to like light rail, too, and used it daily when I lived in the Washington metro area a long time ago. If there were a line from High Point to Greensboro, I'd definitely be on it today. In reality, that day is a long way off, if it ever comes. So, my mass transit option is limited to the PART buses, which I ride on occasion. Since it only "costs" $2 each way, the cost-benefit ratio is quite favorable. For me. But then again, other people pay the bulk of the costs.
Borders notes that the cost of a commuter rail ride in Charlotte is $2.60, "while an unsubsidized ticket would cost $29.66."
With that kind of difference, someone has to convince the general public that they're reaping some big benefits even if they never use the system themselves. Actually, the public seems pretty well conditioned to believe it from the start. Mass transit reduces pollution and congestion on our highways, which means we won't have to spend so much building more or wider roads and we won't contribute as much to the total destruction of our planet through global warming. So goes the conventional wisdom.
I'll leave discussion of Benefit 2 to another time, but Borders claims Benefit 1 is dubious. He quotes transportation expert David Hartgen as predicting Triangle light rail would reduce auto traffic by only about 1 percent, and population increases would overtake that reduction quickly anyway.
Of course, any little bit helps, but it's important to find the most cost-effective means to solve big problems like traffic congestion.
As for the Downtown Greenway, well, that's not even a project designed to solve a problem. It's purely an amenity. Proponents make a very exciting case for its possibilities, but coming up with a positive cost-benefit analysis might be a tough proposition.