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Congestion tolling with agglomeration externalities

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  • Arnott, Richard

Abstract

Consider an urban economy with two types of externalities, negative traffic congestion externalities and positive agglomeration externalities deriving from non-market interaction. Suppose that urban travel can be tolled, that non-market interaction cannot be subsidized, and that non-market interaction is stimulated by a reduction in travel costs. Then the optimal toll is below the congestion externality cost. This paper explores this line of reasoning.

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Bibliographic Info

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

Volume (Year): 62 (2007)
Issue (Month): 2 (September)
Pages: 187-203

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Handle: RePEc:eee:juecon:v:62:y:2007:i:2:p:187-203

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

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References

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Citations

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Cited by:
  1. repec:dgr:uvatin:2010073 is not listed on IDEAS
  2. Yoshitsugu Kanemoto, 2013. "Pitfalls in estimating “wider economic benefits” of transportation projects," GRIPS Discussion Papers 13-20, National Graduate Institute for Policy Studies.
  3. Rainald Borck & Matthias Wrede, 2008. "Subsidies for Intracity and Intercity Commuting," CESifo Working Paper Series 2321, CESifo Group Munich.
  4. Yoshitsugu Kanemoto, 2012. "Second-Best Cost-Benefit Analysis in Monopolistic Competition Models of Urban Agglomeration," GRIPS Discussion Papers 11-21, National Graduate Institute for Policy Studies.
  5. Mogens Fosgerau & André De Palma & Anders Karlstrom & Kenneth A. Small, 2012. "Trip timing and scheduling preferences," Working Papers hal-00742267, HAL.
  6. Yuval Kantor & Piet Rietveld & Jos van Ommeren, 2013. "Towards a General Theory of Mixed Zones: The Role of Congestion," Tinbergen Institute Discussion Papers 13-084/VIII, Tinbergen Institute.
  7. Peer, Stefanie & Verhoef, Erik T., 2013. "Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 12-27.
  8. repec:wyi:wpaper:002039 is not listed on IDEAS
  9. Giovanni Russo & Jos van Ommeren & Piet Rietveld, 2010. "The University Workers' Willingness to pay for Commuting," Tinbergen Institute Discussion Papers 10-086/3, Tinbergen Institute.
  10. Harrington, Winston & Safirova, Elena & Coleman, Conrad & Houde, Sebastien & Finkel, Adam M., 2014. "Distributional Consequences of Public Policies: An Example from the Management of Urban Vehicular Travel Abstract: This paper uses a spatially disaggregated computable general equilibrium model of a l," Discussion Papers dp-14-04, Resources For the Future.
  11. Tsekeris, Theodore & Geroliminis, Nikolas, 2013. "City size, network structure and traffic congestion," Journal of Urban Economics, Elsevier, vol. 76(C), pages 1-14.
  12. Zheng, Nan & Waraich, Rashid A. & Axhausen, Kay W. & Geroliminis, Nikolas, 2012. "A dynamic cordon pricing scheme combining the Macroscopic Fundamental Diagram and an agent-based traffic model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1291-1303.
  13. Rhee, Hyok-Joo & Yu, Sanggyun & Hirte, Georg, 2014. "Zoning in cities with traffic congestion and agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 82-93.
  14. Jeffrey C. Brinkman, 2013. "Congestion, agglomeration, and the structure of cities," Working Papers 13-25, Federal Reserve Bank of Philadelphia.
  15. Viard, Brian & Fu, Shihe, 2011. "The effect of Beijing’s driving restrictions on pollution and economic activity," MPRA Paper 33009, University Library of Munich, Germany.
  16. Mogens Fosgerau & Kenneth Small, 2013. "Endogenous Scheduling Preferences and Congestion," Working Papers 131403, University of California-Irvine, Department of Economics, revised May 2014.

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