economics

Monday, January 22, 2007

Chapter 3 Media Article

“Better rapid transit, but not rapidly”, The Province Jan. 17, 2007.

This article states that Translink is planning to expand its service and range according to the changes and growth of population. The changes that will be seen will either be bus rapid transit (BRT) or light-rail transit (LRT). The BRT includes on-board announcements and dedicated transit lanes while the LRT (variation of a SkyTrain) is less expensive and is on a grade instead of an elevated guide way. This plan is in place because the population and number of jobs are predicted to increase. For example, in Surrey, White rock, growth is expected to be about 58 percent or 948,045 in population and the number of jobs to have increased by 73 percent. Also, BRT bus routes may be upgraded into LRT bus routes as the planning process continues. So, in the next decade or so, we should be expecting to see many alterations to Translink and the places it can take us to.

Relationship to Ch. 3 – government involvement, natural monopoly, third-party effects, privatization

Transportation is an important factor in the Greater Vancouver area as it is booming economically and the need to travel around is high. Therefore we have Translink in place. According to my knowledge, Translink is partially composed of subsidiary companies and government involvement where government officials make up the board of directors. The government is involved in our transportation services and allow Translink to more or less have a monopoly on this aspect of the market due to the fact that it is not so efficient to have many competitors. As Translink expands, its service will reach more people more promptly and efficiently. Translink allows for fewer traffic jams as there are fewer vehicles on the road. But for those who choose it, there are alternate sources of transportation, namely automobiles which is the most popular by far. In terms of public transit though, Translink is likely to have the best combination of good efficiency and low cost, especially since it has much capital at its disposal. And of course, if there are fewer vehicles out there, it will, in the end, benefit the issue of global warming as there are less greenhouse gases emitted. Another possible third-party effect is on a much smaller scale. If a good transportation system is in place and places are easily accessible, the tourism industry in the area affected will benefit and prosper. Furthermore, in my opinion, privatization of this industry is not the best option because privatized companies are most concerned with profit and will lead to higher costs and will probably be more damaging to the environment as the materials used are unlikely to be environmentally-friendly, even if the end result is a more favourable service.

Personal Reflection

Although Translink has its flaws and may not offer the speediest way to travel, I think that the advantages outweigh the drawbacks. One thing that I think is really important is that travelling by public transportation is much safer than travelling by car. What I mean is, how often do you see, for example, buses crash? Now compare this to how often cars accidents occur. What I will never understand is the obsession of the current youth generation to drive. But it is because of this mindset, this obsession that results in the many car accidents around us. Besides, drivers hired by Translink are likely to be more careful because their jobs are on the line.