An Evaluation of Cross Island Parkway (Term Paper Sample)

Running Head: AN EVALUATION OF THE CROSS ISLAND PARKWAY
An Evaluation of the Cross Island Parkway as a Toll Good
Name
Institution
Table of Contents TOC \o "1-3" \h \z \u List of tables and diagrams PAGEREF _Toc383897045 \h 2Definition of the toll good PAGEREF _Toc383897046 \h 3Production of the toll good PAGEREF _Toc383897047 \h 8Citizen Preference and Scale of Effect PAGEREF _Toc383897049 \h 11Fiscal Equivalence PAGEREF _Toc383897050 \h 14Allocative efficiency PAGEREF _Toc383897051 \h 16Conclusion PAGEREF _Toc383897052 \h 18References PAGEREF _Toc383897053 \h 21
List of tables and diagrams
Diagram 1: Showing the working of the Palmetto Pass system13
Table 1: Toll revenues and fines for Cross Island Parkway15
Definition of the toll good
Cross Island Parkway (CIP) also called the 100th infantry division parkway is an important toll good provided by the New York State. The CIP qualifies as a toll good based on the typical characteristics like excludability and rivalry in consumption. (Aligica & Boettke, 2011). Typically economists define public goods like the CIP as being non excludable and non rivalrous. In order to clearly understand this concept we can mention that apart from public goods, we also have private and mixed goods. Certainly in this sense it can be noted that whenever a motorist uses the Cross Island Parkway, he or she is required to pay a toll fee. This precisely defines one of the reasons why Cross Island Parkway qualifies to be a toll good. This excludability relates to the degree by which the good is limited to only those consumers who pay. Therefore Cross Island Parkway is a toll road that charges $1.25 for nearly all passenger cars. There is an additional $1.00 for every additional axle. The interstate cuts down the journey from the split to the southern end of the island to just five minutes from thirty minutes for the optional route. Furthermore as a toll good the Cross Island Parkway is also non rivalrous. In this case a motorist who drives over CIP does not in any way reduce the degree of consumption or usage for subsequent motorists. As such there is no rivalry in the consumption whereby any initial consumption would diminish the availability of the good in the same proportion to other consumers. Since the CIP has low rivalry, it implies that the marginal cost of serving an extra consumer is nil.
The Cross Island Parkway is different from other New York State roads because it is classified as a toll road. Therefore in order to enjoy the benefit of driving on this road, a motorist is required to pay in excess of $1 depending on the type of vehicle. While this is the case, driving on other roads and non toll bridges does not require a motorist to pay any toll fee. In addition the Consider some of the private roads in central New York owned by a number of families who form an association that takes care of the roads. The CIP is different from this type of good because the private road is owned by a private entity whereas CIP is state owned. Comparatively while the CIP, private and non toll public goods mentioned here are all roads, the difference relates to the two main characteristics that distinguish them. Hence based on excludability and rivalry in consumption these roads can be grouped as private, public or toll. In reference to this understanding a private good is therefore one with a high rivalry in consumption and high excludability. The good is strictly and specifically consumed by a group of people who pay for its use. This varies from a public good that has low excludability as well as rivalry in consumption. A toll good like the Cross Island Parkway is one that has a high excludability but low rivalry in consumption. In this kind of arrangement it is possible to exclude some consumers based on the toll charge while still availing the good in the same proportion for joint use. (Leeson, 2005). The common resource goods have low excludability but high rivalry in consumption. Such goods portray an infeasible exclusion and have an alternative use. A typical example would be oil from an oil field.
Provision of the toll good
The Cross Island Parkway is provided under the federal government legislation (federal aid highway act 1944) on state roads. For example this legislation establishes a 50-50 formula used to subsidize the construction and maintenance of national highways and secondary (or "feeder") roads like the CIP. The current funding federal transportation bill enforced by the Bush administration in 2005 is supposed to also actuate the funding for transportation construction that includes the Cross Island Parkway. In addition the New York State legislation that covers the planning and zoning on provision of this facility is also enforced. Thus on a general level the two provision units concerned with the Cross Island Parkway are the federal government and the New York State. Therefore while the federal government releases some amount of money to maintain the Cross Island Parkway, the other portions of the monies needed to ensure that this public good is continuously available to the consumer will be generated by the New York state government. Most particularly these monies are available so that the Cross Island Parkway is in usable state to be consumed by motorists who must pay a toll fee.
The four members of the two provision units for Cross Island Parkway include the New York Department of Transportation (NYDOT), the New York City Parks Department, the New York State Department of Transportation (NYSDOT), and the South Carolina Department of Transportation (SCDOT). Each of these units is responsible for a particular aspect that directly relates to the provision and production of Cross Island Parkway as a toll good. The South Carolina Department of Transportation runs the toll centre erected on the Cross Island Parkway. The toll is under the management of the SCDOT commission that oversees operations and maintenance, customer service, violation enforcement and finances and budgeting. The toll operation center running under SCDOT was opened in 2001. This center also manages state toll facilities develops new toll systems and coordinates private toll roads. The operations and maintenance undertaken by the toll centre covers the Cross Island Parkway coordinating with the CIP management to evaluate the data gathered from the electronic toll facility. The toll centre also works in conjunction with SCDOT to receive and process data from Cross Island Parkway as far as violation enforcement is concerned. The violation enforcement process is elaborate but involves obtaining the registration information from state databases and managing and retaining all documentation related to any violations. The New York State Department of Transportation establishing and coordinating a reliable transportation policy that covers facilities like the Cross Island Parkway that is one of the many transportation networks in the state of New York. The policy also includes the development and operations of such facilities. Furthermore the NYSDOT also administers public safety programs for railroads and other facilities like CIP and manages all intrastate commercial transportation through the regulation of services and rates. On the other hand the NYDOT provides safe, efficient, and environmentally responsible movement of people and goods in the City of New York and maintains and enhances the transportation infrastructure that is vital to the economy and quality of life of the city residents. Therefore these four units jointly work in providing Cross Island Parkway as a toll good consumed by the city residents. Some of the units are directly involved while others only provide an extended availability or access to the Cross Island Parkway.
In 1930, the president of the New York State Council of Parks Robert Moses proposed the Cross Island Parkway. This was considered as part of the ambitious plan to construct a number of parkways as well as parks in the city of New York. During the same period other proposals of similar proportions included the Richmond and Grand Central Parkways. The proposition to construct the Cross Island Parkway was made before an audience of 500 civic leaders. At this time the state of New York had approximately $400 million in borrowing capacity and the proposed construction including the Cross Island Parkway was expected to take up more than half the money. The Cross Island Parkway piece was expected to start at Bronx Whitestone Bridge crossing through the Alley Park and Whitestone Bayside and subsequently going along the Nassau County border all the way to Laurelton Parkway that connects it to the Southern Parkway. In 1937 the New York City Parks Department under the directorship of Robert Moses recommended the Cross Island Parkway among other parkways. In 1938 the Regional Plan Association proposed several parks three of which were important in helping the construction of the Cross Island Parkway. In 1938 a circumferential parkway was approved at a cost of $28 million. Part of the funding was by the state of New York while the remainder was by the public works administration. The circumferential parkway eventually changed its name to the Belt Parkway that was constructed through various contracts and became part of the Cross Island Parkway. By February 1939, Hebert Lehman the governor of New York permitted the city to construct the Cross Island Parkway portion that was reaching the Nassau County. This was enforced by the Bennett-Numan Bill that also permitted the city authorities to enforce their laws on the new roadway within Nassau County. In the same year the city of New York entered a contract with the National Excavation Corporation so that the Cross Island Parkway would connect the 91st Avenue to Hillside Avenue. This project was completed at a cost of $340,000. Eventually numerous other contracts would follow focused on p...