Subject category:
Ethics and Social Responsibility
Published by:
Harvard Kennedy School
Length: 2 pages
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https://casecent.re/p/82188
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Abstract
This fictionalized case describes a public finance policy analysis problem faced by a city in China. In order to reduce downtown congestion and create a pedestrian area, the city wants to provide shuttle transportation in and out of the city from a new parking facility to be built across the river. Careful analysis of benefits and costs suggests that there would be substantial social gains, on balance, from the program. The problem is that there is little likelihood that parking revenues from the new facility would be enough to pay the costs of the program. How should a city proceed when a program valuable from the perspective of the society cannot readily be made self-financing?
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Abstract
This fictionalized case describes a public finance policy analysis problem faced by a city in China. In order to reduce downtown congestion and create a pedestrian area, the city wants to provide shuttle transportation in and out of the city from a new parking facility to be built across the river. Careful analysis of benefits and costs suggests that there would be substantial social gains, on balance, from the program. The problem is that there is little likelihood that parking revenues from the new facility would be enough to pay the costs of the program. How should a city proceed when a program valuable from the perspective of the society cannot readily be made self-financing?
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