Extract B

Is municipal e-cargo delivery a public good?

Municipal electric-cargo (e-cargo) bike delivery programs have expanded rapidly. In the historic city of Oakhaven, the "GreenFreight" scheme is funded through local business rates and a subsidised commercial licensing fee. This allows local retailers to use electric cargo bikes for last-mile deliveries within the zero-emission zone for a nominal charge.

Without municipal intervention, private logistics firms would underprovide these eco-friendly delivery services. They are unable to charge third-party residents for the benefits of quieter streets, lower particulate pollution, and preserved historical pavements, leading to market failure.

The scheme's charter sets out its main operational objectives:

• To eliminate diesel particulate matter and reduce localized nitrous oxide emissions
• To preserve fragile historic cobblestone streets from damage caused by heavy delivery vehicles
• To provide affordable, last-mile logistics for micro-businesses and independent retailers
• To improve safety for pedestrians and cyclists in dense, high-footfall commercial zones
• To reduce traffic bottlenecks and idling times on the city's narrow medieval thoroughfares