Chapter 2, Question 3

Charles Wheelan  brings up the issue of traffic congestion and pollution issues that were prominent in London. The solution which economist in London came up with was to raise gas prices. This helped somewhat with the digestion of traffic. They then raised it even more and the reaction was immense! Traffic levels dipped by 20% and bus delay times were cut inhalf. By adding incentive for people not to drive as much, they were able to solve thier traffic problems. However, a comsiquence  stores didn't make as much revenue. This reminds me also when the gas prices in Minnesota were super low. It makes me ask why? Wouldn't that then increase driving and traffic and pollution? Did they do it to provide incentive for people to go shop more?