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Voting on road congestion policy

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  • Russo, Antonio

Abstract

This paper studies the political economy of urban traffic policy. A city council and a regional government (representing city and suburbs) decide respectively on parking fees and a road toll. Both charges are below the optimum when median voters in city and suburbs prefer cars to public transport sufficiently more than the average. Even if the city government would set an optimal road toll, the regional government blocks it when the median suburban voter prefers cars strongly enough. Letting the city control parking and road pricing may therefore increase chances of adoption of the latter. However, if the city controls parking and the region road pricing, the combined charges are higher than if the city controlled them both. Hence, when voters want all charges below the optimum, the involvement of two governments may be desirable. We also find that earmarking road pricing revenues for public transport is welfare-enhancing, compared to lump-sum redistribution, only if they are topped up by extra funds granted to the city by a higher level of government.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 43 (2013)
Issue (Month): 5 ()
Pages: 707-724

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Handle: RePEc:eee:regeco:v:43:y:2013:i:5:p:707-724

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Related research

Keywords: Road pricing; Parking charges; Majority voting; Multiple governments;

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References

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  1. De Borger B. & Dunkerley F. & Proost S., 2006. "Strategic investment and pricing decisions in a congested transport corridor," Working Papers 2006021, University of Antwerp, Faculty of Applied Economics.
  2. Eva Gutiérrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting," SOEPpapers on Multidisciplinary Panel Data Research 222, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Parry, Ian, 2000. "Comparing the Efficiency of Alternative Policies for Reducing Traffic Congestion," Discussion Papers dp-00-28, Resources For the Future.
  4. Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
  5. Hutlkrantz, Lars & Armelius, Hanna, 2005. "The Politico-Economic Link Between Public Transport And Road Pricing: An Ex-Ante Study Of The Stockholm Road-Pricing Trial," Working Papers 2005:8, Örebro University, School of Business.
  6. Winslott-Hiselius, Lena & Brundell-Freij, Karin & Vagland, Asa & Byström, Camilla, 2009. "The development of public attitudes towards the Stockholm congestion trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 269-282, March.
  7. Arnott, Richard & Inci, Eren, 2006. "An integrated model of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 60(3), pages 418-442, November.
  8. De Donder, Philippe & Le Breton, Michel & Peluso, Eugenio, 2010. "Majority Voting in Multidimensional Policy Spaces: Kramer-Shepsle versus Stackelberg," CEPR Discussion Papers 7646, C.E.P.R. Discussion Papers.
  9. André De Palma & Fay Dunkerley & Stef Proost, 2005. "Trip chaining - who wins, who loses?," ERSA conference papers ersa05p496, European Regional Science Association.
  10. Ubbels, Barry & Verhoef, Erik T., 2008. "Governmental competition in road charging and capacity choice," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 174-190, March.
  11. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
  12. Marcucci, Edoardo & Marini, Marco, 2005. "Road pricing as a citizen-candidate game," MPRA Paper 29293, University Library of Munich, Germany.
  13. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
  14. Bruno DE BORGER & Stef PROOST, 2010. "A political economy model of road pricing," Center for Economic Studies - Discussion papers ces10.20, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  15. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," University of California Transportation Center, Working Papers qt9js9z8gz, University of California Transportation Center.
  16. Bonsall, Peter & Young, William, 2010. "Is there a case for replacing parking charges by road user charges?," Transport Policy, Elsevier, vol. 17(5), pages 323-334, September.
  17. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-79, March.
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Citations

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Cited by:
  1. De Donder, Philippe, 2010. "Majority Voting and the Single Crossing Property when Voters Belong to Separate Groupes The Role of the Continuity and Strict Monotonicity Assumptions," IDEI Working Papers 693, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2012.
  2. DE BORGER, Bruno & PROOST, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Working Papers 2012014, University of Antwerp, Faculty of Applied Economics.
  3. DE BORGER, Bruno & PROOST, Stef, 2013. "The political economy of pricing and capacity decisions for congestible local public goods in a federal state," Working Papers 2013020, University of Antwerp, Faculty of Applied Economics.

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