Question 20 – 1.3 Market failure - Questions

Extract B

Is municipal cycle-sharing a public good?

Municipal bike-sharing programs have expanded rapidly. In the city of Westford, the "MetroBikes" scheme is funded through local municipal taxes and a small user registration fee. This allows residents to borrow bikes for up to 45 minutes for free.

Without municipal subsidy, private firms would underprovide these services because they are unable to exclude non-paying users from experiencing the benefits of cleaner air and clearer roads, leading to market failure.

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

To improve overall urban air quality and reduce vehicular carbon emissions
To promote healthy lifestyles and reduce chronic disease rates
To provide affordable connectivity ("first/last mile") for public transit users
To offer mobility options in marginalized outer suburbs where commercial providers will not operate
To reduce congestion on the city's heavily-subsidised bus and rail networks.

Extract B

Is municipal cycle-sharing a public good?

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

To improve overall urban air quality and reduce vehicular carbon emissions
To promote healthy lifestyles and reduce chronic disease rates
To provide affordable connectivity ("first/last mile") for public transit users
To offer mobility options in marginalized outer suburbs where commercial providers will not operate
To reduce congestion on the city's heavily-subsidised bus and rail networks.

1.3 Market failure

Question 7

Extract B

Is municipal cycle-sharing a public good?

1.3 Market failure

Question 7

Extract B

Is municipal cycle-sharing a public good?

1.3 Market failure

Question 7

Extract B

Is municipal cycle-sharing a public good?

1.3 Market failure Questions

1.3 Market failure

Question 7

Extract B

Is municipal cycle-sharing a public good?

1.3 Market failure Questions