The example of when induced demand is bad is when it causes increased pollution. In many parts of the world, there is a deliberate movement towards avoiding bui

The example of when induced demand is bad is when it causes increased pollution. In many parts of the world, there is a deliberate movement towards avoiding building too many roads, in order to decrease road use and therefore pollution levels. However, a car sitting in traffic will produce much more pollution per mile than one travelling at 70mph on a clear road, so the thinking behind this may be flawed.