Mexico City. The model incorporates travel by auto, microbus, public bus, and rail, as well as externalities from local and … global air pollution, traffic congestion, and road accidents. In our benchmark case, the optimal gasoline tax is $2.72 per …

passenger transportation in Mexico City. The model incorporates travel by auto, microbus, public bus, and rail, plus … gasoline tax is $2.72 (29.6 pesos) per gallon, or 16 times the current tax. However, a per-mile toll would reduce traffic …