Question

In assessing whether or not to convert HOV lanes for use by single occupancy vehicles whose drivers paid a fee, there were three issues. The first was that this conversion would require MnDOT to return millions of dollars to the federal government. The second was that there would be revenues generated through tolls charged to the drivers of single occupancy vehicles. The third was that the drivers who paid these fees would reduce their travel time. Discuss how each of these three issues should be viewed, either as a cost, a benefit or a transfer (or perhaps none of the above), under the following assumptions about standing:

A. standing is universal.

B. only residents and public agencies in Minnesota have standing.

C. only MnDOT has standing.

Answer 1

HOV lanes are the lanes used to restricted traffic so that the air pollution and the traffic congestion has been reduced. It stands for the High Occupancy Vehicle lane. Here the rides are shared by the public not more than three. This would benefit the public indirectly as it reduces the cost, reduces the traffic congestions, saves time, and pollution.

There are three issues with the conversion of HOV lanes for the use by single occupancy vehicles whose drivers paid a fee which has been discussed with the situation as follows:

A. Standing is universal- If the position is standing in the universal it would neither beneficiary or cost effective. The revenue generated by the tolls would be charged from the universal that would be addition to the minimum charges imposed on travelling.

B. Only residents and public agencies in Minnesota have standing- If the decision was made on behalf of only residents and public agencies in Minnesota then it would be beneficiary to them. This is because they would share the ride and the time to reach the places would be reduced if the HOV was not converted. They save the money as well as time. They have the indirect benefit of pollution reduction on their health. The resident of the Minnesota would be benefited in this issue.

C. Only Mn DOT has standing- Mn DOT would have to pay a lump sum amount for the conversion of this process to the federal government. This decision would not beneficiary to the Mn DOT as they also have to take care of the pollution, traffic congestion etc. So, it is not cost-effective process for the Mn DOT.