I’ve vaguely thought about this more comprehensive view of induced demand, but you’ve summarised it well. However, it’s that view that makes me pessimistic anything will change in Australia. There aren’t even directionally good policy like more buses that indicate the start of a shift. Western Sydney is especially bleak where outside parramatta everywhere else people face the imposition of car ownership and are proud of it.
Very good. We can induce demand for rail, cycling or anything else if we change the preventative to driving and vice-versa.
I think induced demand is another label for substitution, and there are many other ways we have confused what should be a simple observation.
Eg
https://www.fresheconomicthinking.com/p/downs-thomson-housing-paradox?r=531z1&utm_campaign=post&utm_medium=web
“change the preventative to” = “change the relative prices of”
I’ve vaguely thought about this more comprehensive view of induced demand, but you’ve summarised it well. However, it’s that view that makes me pessimistic anything will change in Australia. There aren’t even directionally good policy like more buses that indicate the start of a shift. Western Sydney is especially bleak where outside parramatta everywhere else people face the imposition of car ownership and are proud of it.