Earlier quoted context omitted.
It is an attempt to prevent a tragedy of the commons. NY doesn't have enough road capacity to handle all of the taxis that would be profitable in a free market. Therefore they limit the number of taxis to ease congestion.
> NY doesn't have enough road capacity to handle all of the taxis that would be profitable in a free market. // Are you sure it will increase the overall number of vehicles on the roads? There can only be more taxis if there is sufficient demand to pay for them and their drivers. If there are more taxis then there's a downward pressure on prices which, yes, creates the possibility of more demand. But reality doesn't…
This point is directly opposed to your statement that "Taxis are better optimised resources in urban areas than car-ownership".
I can't argue that either point is right or wrong, but I'd like to know if you had any information I can read supporting your point about taxis being better optimized for cities.
In any case, I just wanted to contribute this story as another data point along the way.
http://www.npr.org/blogs/money/2012/07/31/157477611/does-new...