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Implications of interdependencies between charging strategies of local authorities for the protection of sensitive areas in the Trans-Pennine Corridor

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  • Gühnemann, Astrid
  • Koh, Andrew
  • Shepherd, Simon
  • Lawler, Mary
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    Abstract

    This paper investigates interdependencies between road user charging strategies of neighbouring institutions and discusses the implications for the optimal strategy for the protection of environmentally sensitive areas. Using simulation models, welfare optimising cordon charges including pollution costs have been determined for three different scenarios for the Peak District and Sheffield Air Quality Management Area: a global regulator, a myopic regulator and a non-cooperative Nash game. The results show revenue extraction and relocation of traffic in the non-cooperative setting. Under global regulation lacking monetary values for natural assets in current appraisal guidance lead to a bias towards densely populated conurbations.

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    Bibliographic Info

    Article provided by Elsevier in its journal Utilities Policy.

    Volume (Year): 19 (2011)
    Issue (Month): 1 (January)
    Pages: 42-52

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    Handle: RePEc:eee:juipol:v:19:y:2011:i:1:p:42-52

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    Web page: http://www.elsevier.com/locate/inca/30478

    Related research

    Keywords: Road user charging Air pollution Governmental competition Environmentally sensitive areas;

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    1. Rouwendal, Jan & Verhoef, Erik T., 2006. "Basic economic principles of road pricing: From theory to applications," Transport Policy, Elsevier, vol. 13(2), pages 106-114, March.
    2. Bruno de Borger & Stef Proost, 2004. "Vertical and horizontal tax competition in the transport sector," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 45-64.
    3. Mordukhovich, Boris S., 2005. "Optimization and equilibrium problems with equilibrium constraints," Omega, Elsevier, vol. 33(5), pages 379-384, October.
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    5. David Levinson, 2001. "Why States Toll: An Empirical Model of Finance Choice," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(2), pages 223-237, May.
    6. Steiner, T. J. & Bristow, A. L., 2000. "Road pricing in National Parks: a case study in the Yorkshire Dales National Park," Transport Policy, Elsevier, vol. 7(2), pages 93-103, April.
    7. De Borger, B. & Proost, S. & Van Dender, K., 2005. "Congestion and tax competition in a parallel network," European Economic Review, Elsevier, vol. 49(8), pages 2013-2040, November.
    8. Takama, Takeshi & Preston, John, 2008. "Forecasting the effects of road user charge by stochastic agent-based modelling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 738-749, May.
    9. Bonsall, Peter & Shires, Jeremy & Maule, John & Matthews, Bryan & Beale, Jo, 2007. "Responses to complex pricing signals: Theory, evidence and implications for road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 672-683, August.
    10. Holding, David M. & Kreutner, Martin, 1998. "Achieving a balance between "carrots" and "sticks" for traffic in National Parks: the Bayerischer Wald project," Transport Policy, Elsevier, vol. 5(3), pages 175-183, June.
    11. AndrÊ de Palma & Robin Lindsey, 2000. "Private toll roads: Competition under various ownership regimes," The Annals of Regional Science, Springer, vol. 34(1), pages 13-35.
    12. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-22, June.
    13. Barry Ubbels & Erik Verhoef, 2006. "Governmental Competition in Road Charging and Capacity Choice," Tinbergen Institute Discussion Papers 06-036/3, Tinbergen Institute, revised 10 Sep 2007.
    14. May, A. D. & Liu, R. & Shepherd, S. P. & Sumalee, A., 2002. "The impact of cordon design on the performance of road pricing schemes," Transport Policy, Elsevier, vol. 9(3), pages 209-220, July.
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