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Bottleneck congestion pricing and modal split: Redistribution of toll revenue

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  • Mirabel, François
  • Reymond, Mathias

Abstract

The paper examines the question of the redistribution of toll revenue as seen in a bottleneck congestion model. Our objective is to analyse the impact of this redistribution on total cost and on modal split between railroad and road. Following Tabuchi's two-mode model (Tabuchi, T., 1993. Bottleneck congestion and modal split. Journal of Urban Economics 34, 414-431.), we integrate a redistribution of toll revenue towards public transport into our study. In this context, we investigate two kinds of road toll regimes: a fine toll and a uniform toll. We will consider two types of railroad fare: when it is set equal to the marginal cost and when it is set equal to average cost. These models allow us to show that toll policy to be more efficient as long as toll revenue is directed towards public transport when the railroad fare is equal to average cost.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 45 (2011)
Issue (Month): 1 (January)
Pages: 18-30

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Handle: RePEc:eee:transa:v:45:y:2011:i:1:p:18-30

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Related research

Keywords: R41; R48 Congestion pricing Public transport Revenue;

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References

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  1. Yukihiro Kidokoro, 2005. "London-type congestion tax with revenue-recycling," Economics Bulletin, AccessEcon, vol. 18(1), pages 1-6.
  2. Danielis, Romeo & Marcucci, Edoardo, 2002. "Bottleneck road congestion pricing with a competing railroad service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 379-388, September.
  3. Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-71, December.
  4. Mathias Reymond, 2004. "Les politiques d'accompagnement du péage urbain : étude sur l'acceptabilité en Suisse," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(4), pages 609-630.
  5. Huang, Hai-Jun, 2000. "Fares and tolls in a competitive system with transit and highway: the case with two groups of commuters," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(4), pages 267-284, December.
  6. Kottenhoff, Karl & Brundell Freij, Karin, 2009. "The role of public transport for feasibility and acceptability of congestion charging - The case of Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 297-305, March.
  7. Parry, Ian W.H. & Small, Kenneth, 2007. "Should Urban Transit Subsidies Be Reduced?," Discussion Papers dp-07-38, Resources For the Future.
  8. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
  9. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
  10. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
  11. Tabuchi Takatoshi, 1993. "Bottleneck Congestion and Modal Split," Journal of Urban Economics, Elsevier, vol. 34(3), pages 414-431, November.
  12. Schade, J. & Baum, M., 2007. "Reactance or acceptance? Reactions towards the introduction of road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(1), pages 41-48, January.
  13. repec:ebl:ecbull:v:18:y:2005:i:1:p:1-6 is not listed on IDEAS
  14. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
  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. 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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Cited by:
  1. Chen, Linxi & Yang, Hai, 2012. "Managing congestion and emissions in road networks with tolls and rebates," Transportation Research Part B: Methodological, Elsevier, vol. 46(8), pages 933-948.

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