The Cato Institute reports (and my calculations back them up as well) that if you want to do something for the environment, prudent policy would be to take measures to encourage people to drive more efficient cars, and to build the lanes to reduce congestion.
On the other hand, if you want to trash the environment, increase money for transit. When you count the capital energy costs (energy needed to build the infrastructure needed), it turns out that light rail is more or less worse than having everyone drive an SUV to work.
Oh, and one more thing; if they could make roads just a little wider on each side--say a nice 2-3' shoulder past the white line--that creates some awfully nice bike lanes, plus a safe place for disabled vehicles to pull off. Not always possible or advisable, but awfully nice.
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