When people criticize cars, you hear that many people die in road accidents, many are injured and so on. All true, dangerous driving represents a negative externality to some, and it means that road reform needs to be done.
However, the point is, for those who choose to drive, the rate of return to driving is higher than the rate of return to any other option. The road network and driving still make those people better.
If anything, recognizing the ugly exterior may mean the biggest possible improvement is the driving experience.
And you may notice that moving to a big city may benefit some urban dwellers, by using external congestion. The opera house will be better, and so on.
Still, the overall flow of America is toward the suburbs. That means that for many commuters the average return on urban life is high.
Many urban dwellers focus on the various externalities that arise from urban life and urban environments, both good and bad accordingly. They are loath to admit when the rate of return is higher than a growing number of Americans.
On a larger scale, perhaps we should favor the suburbs. If, in some remote area of the region, you can open a new city, or suburbs, the city option may improve welfare more. Even though there are some positive externalities in city density, and some negative externalities that come from urban life.
Yeah, side change blah blah blah. But don’t forget the measurements!
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