therefore, i guess this cost definitely covers for all potential pollution pigouvian taxes and geopolitical risk premia.

moreover, there is already some parking fees, some car taxes (local or national – whatever). the parking fees etc may not go to the govt., but they do come out of the user’s pocket.

so PRIMA-FACIE INCENTIVES FOR BUYING A CAR DONT SEEM TO BE SCREWED UP IN INDIA EVEN AFTER TAKING INTO ACCOUNT EXTERNALITIES

but you are correct – more metro-like urban systems have to be made in many more cities – you are absolutely correct on that one.

nonetheless more urban ring roads, flyovers, bypasses and some newer/wider roads within the city too need to be built.

regarding your comment that india has just 2 percent of the world’s area that doesnt really matter coz even if u 300 million cars in india and each occupies say 3.3 sq. m then thats just a billion sq. m, which is 1000 sq. km which is BASICALLY THE SIZE OF DELHI. so size aint a problem.

along with urban roads (and new cities, more vertical cities, more PUBLIC TRANSPORT), we need many many more 4 lane state and national highways too. india will have to have some suburban sprawl. true american style is absolutely not recommended here, but some will and should happen.

thats the only way congestion would decrease.

SUMMARY
1. people will buy more cars.
2. but we should invest in public transport ALSO, and more in non-carbon energy R&D.

ps: Vinod Khosla was here with all his ethanol ideas, but the B-school people didnt create enough publicity…..arrrrrrrrrrghhhhhhhhhhhh

I wonder if you own a car or not.

To me it looks like what happens in an unreserved train compartment. Those who are outside keep cursing the inside people for their callous attitude — till they themselves get inside. After they are in, they suddenly discover that the compartment is already overcrowded and cannot support more people.

Same here. My job is important and I cannot do without my car. However, you have been managing so long without a car. So why do you want one now? Can’t you see that our roads are already overcrowded, there is pollution due to cars and India cannot afford expensive forex needed for gas? Can’t you see that your car is going to cause pollution, congestion and forex crisis in a way that my car doesn’t?

In a nutshell, free market economy is fine as long as it does not touch my privileges. The moment it does, I start seeing undiscovered virtues in controls and regulations.

Talk comes really cheap. Doesn’t it?

Well, there’s also the issue of increased pollution – noise, air etc. that will result because of increase in the number of cars, the time and loss of productivity as people spend more time in traffic, hence leading to more stress (hey, a bullish market for psychotherapists!!) and other issues arising out of more cars on the road.

Its surely a possibility. Never underestimate the market!

Even without those 1 lakh cars, the number of vehicles in the cities are growing very fast.

A capitalist, having obsessed with the concept of “growth”, is forced to do these kind of things. Shareholders want returns fast, they are really not interested in a long term solution.

Atanu, I feel that foresighted leadership is a myth. If a capitalist thinks like that, then his business is doomed as his competitor will do it anyway. If a minister imposes some short term restriction in favour of a long term solution, people cry foul (that there is no more a free market).

The problem is not at the root (Tatas/Birlas), but at the leaves (public). So, a foresighted citizenship is needed before a foresighted leadership.

I try not to focus on these kind of things, but every time I get on roads, it reminds me where I am.

-Mike