What is the Fundamental Law of Road Congestion? What is its implication for the strategy of building more road capacity to solve traffic problems? With respect to automobile exhaust, what is the trade­off between local and global pollution when deciding h

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What is the Fundamental Law of Road Congestion? What is its implication for the strategy of building more road capacity to solve traffic problems? With respect to automobile exhaust, what is the trade­off between local and global pollution when deciding how to control an engine’s emissions? What did VW choose with its diesel motors? (By the way, there is a settlement in prospect.) According to Knittel, what are the options for increasing the fuel economy of the automobile fleet in the short, medium and long run in the U.S.? Be specific as to each time period. According to Knittel, what has been the result of the relatively rapid technological change in the automobile sector? Sketch a graph of the results of this change. What has been consumers’ reaction to it? Include this on your graph, too. How might a higher fuel tax have kept this from occurring? Explain, briefly, using both words and your graph. Name two ways in which an increased gasoline tax would be superior to a higher CAFE standard in reducing CO2 emissions. Global warming (GW)

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