Skip to main content

Private vehicles - the lifeline of transport in India

I agree with Swaminathan Aiyar when he says that 'sanctimonious greens call the Nano disastrous because of its affordability— millions more will now clog roads and consume more fossil fuel. This is elitism parading as virtue. Elite greens own cars, but cannot stand the poorer masses becoming mobile, since the consequent congestion will eat into the time of the elite!'

But I don't agree with him when he says that 'we must abolish subsidies and raise taxes on vehicles and fuels to reflect their full social cost. The biggest but least visible subsidy is for parking, and we should start there.'

His reasoning is flawed as his comparisons to how costly it is to maintain and use a car in the West doesn't make social sense. The Western world is blessed with a public transportation system that is widespread and accessible. Compare that to what the average citizen has to put up with, in India. Making the use of private cars costly in India will in no way affect the elite, whose pockets are pretty deep. On the other hand it will virtually bring to a halt the middle class' ability to move within and outside the cities and towns they habit.

Comments

Published in The Hindu yesterday, Bangalore will soon be starting with the Odd/Even driving rules. Odd numbered and Even numbered vehicles will be allowed to be taken out only on alternate days.

This would not in any way reduce the disparity between the haves and the have-nots, but at least will certainly help in figthing the pollution and the traffic disorder.
Sandy said…
I am sure by the end of next year that roads are gonna be clogged, thanks to the new Nano. This seems to be the war cry of all the so called environmentalists.Would they stop using their vehicles as a role model?

In India the public transport system is dismal.Roads are chaotic to say the least,getting from point A to point B is a pain.Most people in India are trying to make a decent living and make ends meet.
The concretes may differ for people, but the abstracts remain the same.
And now to ask them to give a serious thought to the state of the environment before satisfying desire and aspiration, is like asking a beggar to donate to charity.

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.


Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Consumer Spending

Carpe Diem Blog: From Visual Economics, a graphical representation appears above (click to enlarge) of Consumer Expenditures in 2007, using data from the Bureau of Labor Statistics. Note that total spending on food ($6,133), clothing ($1,881) and housing ($16,920) represented 50% of consumer expenditures and 30% of income before taxes in 2007. In 1997 by comparison, 51.1% of consumer expenditures were spent on food, clothing and housing, and 44.6% of income before taxes was spent on food, clothing and housing (data here).