Chapter 10

I-70 was the first thing that came to mind when I thought of a negative externality.  I do not believe that the Coase Theorem could solve this because not everyone will be better off if the traffic issues are solved. I do think that a tax regulation could help solve the traffic issues. With everyone from the front range heading up 70 at around the same time to ski and also departing at around the same time, it creates congestion. People then loose their time sitting in traffic and as we all know, their patience. The cost to people would be higher taxes to either expand the roads to allow traffic to flow more freely or a tax (toll) to drive on this road. While I don’t think a toll is the way to go as we already have an express lane which many people use illegally.