Often politicians and
other big world "shakers" make obvious or crude choices. Afterwards they
are shocked by the unforeseen consequences.
One of the simplest examples is the car pollution problem. We are all
well aware that gasoline powered cars produce a lot of CO2 and that
electric cars do not. Thus it appears straightforward to encourage the
usage of electric cars. But in some countries this approach does not
solve the pollution problem. Why? Because electricity used to charge
electric cars is still produced by burning coal, which also produces
pollutants. So the pollution problem is simply moved from the
transportation sector to the electric power industry.
Mexico city took different approach to the same problem. They banned
driving cars with certain plate numbers from driving on certain days of
the week. E.g., if your car plate number ends in 3 or 5, then on Tuesday
you would be banned to drive it. So the air pollution should decrease by
1/7th, but it did not. In fact the air pollution rose. Why? Because
people saw other problem - the plate number. So they solved it by buying
cheap old cars, which would have different plate number. Thus these cars
served as a replacement for the "main" car on the "banned" days.
These problems could be foreseen by using computer games! Seeing how
people act in virtual environments. Understanding what incentives do our
regulations create.
We invite you to watch a video by Extra Credits on this topic.