Sunday, January 12, 2014

Why #carsharing and #bikesharing are a step in the right direction

Car sharing companies are growing. With public transit and bike sharing, car sharing allows people to live without owning a car.

The auto system is a very complex system that is uneconomic. In other words, it cannot afford to provide its service for the amount that people can afford to pay. Consequently it survives with heavy subsidy. Justifying the subsidy requires that the system have critical mass -- that it is seen as the "only" way to move people.

Car sharing depresses demand for new cars. This weakens one part of the complex system, creating a need for more subsidy. Eventually critical mass will be lost and the subsidy will be seen as a burden instead of necessity.

Could you have written this post? Yes, of course you could. Economics is not difficult, it is just full of disinformation. Contact fpteditors at gmail dot com and become a freetransit blogger.

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