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The effect of government highway spending on road users' congestion costs

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Author Info

  • Winston, Clifford
  • Langer, Ashley

Abstract

Policymakers attempt to reduce the growth of congestion by spending billions of dollars annually on our road system. We evaluate this policy by estimating the determinants of congestion costs for motorists, trucking operations, and shipping firms. We find that, on average, one dollar of highway spending in a given year reduces the congestion costs to road users only eleven cents in that year. We also find that even if the allocation of spending were optimized to minimize congestion costs that it still is not a cost-effective way to reduce congestion. We conclude the evidence strengthens the case for road pricing.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 60 (2006)
Issue (Month): 3 (November)
Pages: 463-483

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Handle: RePEc:eee:juecon:v:60:y:2006:i:3:p:463-483

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Web page: http://www.elsevier.com/locate/inca/622905

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Cited by:
  1. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008.
  2. JoongKoo Cho & Peter Gordon & James E. Moore II & Qisheng Pan & JiYoung Park & Harry W. Richardson, 2014. "TransNIEMO: Economic Impact Analysis Using a Model of Consistent Interregional Economic and Network Equilibria," CESifo Working Paper Series 4601, CESifo Group Munich.
  3. McArthur, D.P. & Thorsen, I. & Ub√łe, J., 2012. "Labour market effects in assessing the costs and benefits of road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 310-321.
  4. World Bank, 2012. "Arab Republic of Egypt - Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform, Volume 1," World Bank Other Operational Studies 11903, The World Bank.
  5. Michael L. Anderson, 2013. "Subways, Strikes, and Slowdowns: The Impacts of Public Transit on Traffic Congestion," NBER Working Papers 18757, National Bureau of Economic Research, Inc.
  6. World Bank, 2012. "Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform," World Bank Other Operational Studies 11869, The World Bank.

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