Question 1: Reasons for government intervention

The imposition of congestion charges on motorists is a form of government intervention into the issue of traffic congestion on busy public roads. With reference to economic theory covered in this course, why do you think the government needs to intervene in this issue?

Question 2: Public policy solutions

Perform an economic analysis of such congestion charges as a public policy instrument. What other public policy instruments can the government employ here, and how do they differ from congestion charges in terms of implementation?

Question 3: Efficiency of public policy solutions

Based on your analysis in Question 2 above, do you think such government intervention can efficiently correct congestion problems in a way that raises the overall welfare of society?

Question 4: Private solutions

How can each of us as private individuals contribute to the reduction of traffic congestion in the absence of government intervention? Are such private solutions likely to be effective?