The gas tax should help fund public transit

One of my favorite economists has a piece today in the Tennessean calling for a higher gas tax.

A gradual and predictable increase in the price of gas that also serves to stabilize the price is the only thing, short of a dramatic, and painful, disruption in supply that will liberate us from an unhealthy addiction. A phasing in of the tax will enable consumers to pursue greater fuel efficiency and local governments to improve mass-transit options with a stable source of funding.

A 500 word op-ed doesn't allow much with respect to presenting the argument for dedicated funding for mass transit. What many, especially on the right, fail to grasp in considerations of mass transit funding is that there are positive externalities (spillovers) involved. It is folly to insist that mass transit "pay for itself." On the contrary, profit maximizing pricing would reduce efficiency when it comes to public transit; does it make sense for a bus headed downtown to be only half full? Drivers benefit when more people take the bus just as surely as they benefit from well-maintained roads. Increased use of public transit reduces congestion making roads more efficient for those who use them. The business community benefits when employees have a reliable means to get to work as well as an increased flow of customers. A dedicated source of funding would help us a avoid the scenario recently experienced in Nashville and around the nation - transit authorities had to hike fares and cut routes as gas prices spiked.

My sense is that many on the right link public transit intiatives with collectivism while never having experienced the benefits to a community that a good transit system yields. Consider what Washington D.C. or Chicago, NYC, Boston, Philadelphia would look like without their transit infrastructure. They'd look more like L.A.

Beyond efficiency, there is also an equity argument in play. Not everyone can afford to buy a car. Lack of mobility poses a serious constraint on labor market opportunities. Conservatives should embrace enhancements that help people get to work.