IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v92y2016icp76-94.html
   My bibliography  Save this article

Crossing the bridge: The effects of time-varying tolls on curbing congestion

Author

Listed:
  • Foreman, Kate

Abstract

This paper estimates the traffic volume and travel time effects of the road congestion pricing implemented on the San Francisco-Oakland Bay Bridge. I employ both difference-in-differences and regression discontinuity approaches to analyze previously unexploited data for the two years spanning the price change and obtain causal estimates of the hourly average treatment effects of the policy. I find evidence of peak spreading in traffic volume and decreases in travel time during peak hours. I also find suggestive evidence of substitution to a nearby bridge and decreases in travel time variability. In addition, I calculate own- and cross-price elasticities.

Suggested Citation

  • Foreman, Kate, 2016. "Crossing the bridge: The effects of time-varying tolls on curbing congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 76-94.
  • Handle: RePEc:eee:transa:v:92:y:2016:i:c:p:76-94
    DOI: 10.1016/j.tra.2016.06.033
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856416305845
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2016.06.033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lucas W. Davis, 2008. "The Effect of Driving Restrictions on Air Quality in Mexico City," Journal of Political Economy, University of Chicago Press, vol. 116(1), pages 38-81, February.
    2. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
    3. Romeo Danielis & Lucia Rotaris & Edoardo Marcucci & J?rome Massiani, 2012. "A medium term evaluation of the Ecopass road pricing scheme in Milan: economic, environmental and transport impacts," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2012(2), pages 49-83.
    4. Brownstone, David & Ghosh, Arindam & Golob, Thomas F. & Kazimi, Camilla & Van Amelsfort, Dirk, 2003. "Drivers' willingness-to-pay to reduce travel time: evidence from the San Diego I-15 congestion pricing project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(4), pages 373-387, May.
    5. Schrage, Andrea, 2006. "Traffic Congestion and Accidents," University of Regensburg Working Papers in Business, Economics and Management Information Systems 419, University of Regensburg, Department of Economics.
    6. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    7. Janet Currie & Reed Walker, 2011. "Traffic Congestion and Infant Health: Evidence from E-ZPass," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 65-90, January.
    8. Prud'homme, Rémy & Bocarejo, Juan Pablo, 2005. "The London congestion charge: a tentative economic appraisal," Transport Policy, Elsevier, vol. 12(3), pages 279-287, May.
    9. Eliasson, Jonas, 2008. "Lessons from the Stockholm congestion charging trial," Transport Policy, Elsevier, vol. 15(6), pages 395-404, November.
    10. Jonathan Leape, 2006. "The London Congestion Charge," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 157-176, Fall.
    11. Maximilian Auffhammer & Ryan Kellogg, 2011. "Clearing the Air? The Effects of Gasoline Content Regulation on Air Quality," American Economic Review, American Economic Association, vol. 101(6), pages 2687-2722, October.
    12. Eliasson, Jonas & Hultkrantz, Lars & Nerhagen, Lena & Rosqvist, Lena Smidfelt, 2009. "The Stockholm congestion - charging trial 2006: Overview of effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 240-250, March.
    13. Karlström, Anders & Franklin, Joel P., 2009. "Behavioral adjustments and equity effects of congestion pricing: Analysis of morning commutes during the Stockholm Trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 283-296, March.
    14. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    15. Charles Raux, 2005. "Comments on "The London congestion charge: a tentative economic appraisal" (Prud'homme and Bocajero, 2005)," Post-Print halshs-00067920, HAL.
    16. Amy Finkelstein, 2009. "E-ztax: Tax Salience and Tax Rates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 969-1010.
    17. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    18. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July.
    19. Small, Kenneth A., 1983. "The incidence of congestion tolls on urban highways," Journal of Urban Economics, Elsevier, vol. 13(1), pages 90-111, January.
    20. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability," Econometrica, Econometric Society, vol. 73(4), pages 1367-1382, July.
    21. Dickerson, Andrew & Peirson, John & Vickerman, Roger, 2000. "Road Accidents and Traffic Flows: An Econometric Investigation," Economica, London School of Economics and Political Science, vol. 67(265), pages 101-121, February.
    22. Olszewski, Piotr & Xie, Litian, 2005. "Modelling the effects of road pricing on traffic in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 755-772.
    23. Edoardo Croci & Aldo Ravazzi Douvan, 2016. "Urban Road Pricing: A Comparative Study on the Experiences of London, Stockholm and Milan," IEFE Working Papers 85, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    24. Boardman, Anthony E. & Lave, Lester B., 1977. "Highway congestion and congestion tolls," Journal of Urban Economics, Elsevier, vol. 4(3), pages 340-359, July.
    25. Kian-Keong Chin, 2010. "The Singapore Experience: The evolution of technologies, costs and benefits, and lessons learnt," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/1, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Börjesson, Maria & Kristoffersson, Ida, 2018. "The Swedish congestion charges: Ten years on," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 35-51.
    2. Lehe, Lewis J. & Devunuri, Saipraneeth, 2022. "Large Elasticity at Introduction," Research in Transportation Economics, Elsevier, vol. 95(C).
    3. Koh, Wee Ping & Chin, Kian Keong, 2022. "The applicability of prospect theory in examining drivers’ trip decisions, in response to Electronic Road Pricing (ERP) rates adjustments - a study using travel data in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 115-127.
    4. Ramesh Bollapragada & Venoo Kakar & John Goodwin & Andrew Fremier, 2023. "Adoption of FasTrak on San Francisco Bay Area Bridges: Impact of Operations Research Models in Relieving Congestion," Interfaces, INFORMS, vol. 53(2), pages 97-110, March.
    5. Coria, Jessica & Zhang, Xiao-Bing, 2017. "Optimal environmental road pricing and daily commuting patterns," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 297-314.
    6. Beheshtian, Arash & Richard Geddes, R. & Rouhani, Omid M. & Kockelman, Kara M. & Ockenfels, Axel & Cramton, Peter & Do, Wooseok, 2020. "Bringing the efficiency of electricity market mechanisms to multimodal mobility across congested transportation systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 58-69.
    7. Schubert, Daniel & Sys, Christa & Vanelslander, Thierry & Roumboutsos, Athena, 2022. "No-queue road pricing: A comprehensive policy instrument for Europe?," Utilities Policy, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Albalate & Xavier Fageda, 2019. "Congestion, Road Safety, and the Effectiveness of Public Policies in Urban Areas," Sustainability, MDPI, vol. 11(18), pages 1-21, September.
    2. Eliasson, Jonas, 2017. "Congestion pricing," MPRA Paper 88224, University Library of Munich, Germany.
    3. Gibson, Matthew & Carnovale, Maria, 2015. "The effects of road pricing on driver behavior and air pollution," Journal of Urban Economics, Elsevier, vol. 89(C), pages 62-73.
    4. Souche, Stéphanie & Raux, Charles & Croissant, Yves, 2012. "On the perceived justice of urban road pricing: An empirical study in Lyon," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1124-1136.
    5. Andrea Baranzini & Stefano Carattini & Linda Tesauro, 2021. "Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 417-482, July.
    6. Eliasson, Jonas, 2016. "Is congestion pricing fair? Consumer and citizen perspectives on equity effects," Transport Policy, Elsevier, vol. 52(C), pages 1-15.
    7. Björn Hårsman & John M. Quigley, 2010. "Political and public acceptability of congestion pricing: Ideology and self-interest," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(4), pages 854-874.
    8. Jens West & Maria Börjesson, 2020. "The Gothenburg congestion charges: cost–benefit analysis and distribution effects," Transportation, Springer, vol. 47(1), pages 145-174, February.
    9. West, Jens & Börjesson, Maria, 2016. "The Gothenburg congestion charges: CBA and equity," Working papers in Transport Economics 2016:17, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    10. Raux, Charles & Souche, Stéphanie & Pons, Damien, 2012. "The efficiency of congestion charging: Some lessons from cost–benefit analyses," Research in Transportation Economics, Elsevier, vol. 36(1), pages 85-92.
    11. Eliasson, Jonas & Börjesson, Maria & van Amelsfort, Dirk & Brundell-Freij, Karin & Engelson, Leonid, 2013. "Accuracy of congestion pricing forecasts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 52(C), pages 34-46.
    12. Daniel A. Brent & Austin Gross, 2018. "Dynamic road pricing and the value of time and reliability," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 330-349, March.
    13. Börjesson, Maria & Kristoffersson, Ida, 2014. "Assessing the welfare effects of congestion charges in a real world setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 339-355.
    14. André de Palma & Robin Lindsey, 2009. "Traffic Congestion Pricing Methods and Technologies," Working Papers hal-00414526, HAL.
    15. Börjesson, Maria & Kristoffersson, Ida, 2018. "The Swedish congestion charges: Ten years on," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 35-51.
    16. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    17. Li, Shanjun & Liu, Yanyan & Purevjav, Avralt-Od & Yang, Lin, 2019. "Does subway expansion improve air quality?," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 213-235.
    18. De Vos, Jonas, 2016. "Road pricing in a polycentric urban region: Analysing a pilot project in Belgium," Transport Policy, Elsevier, vol. 52(C), pages 134-142.
    19. Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
    20. Souche-Le Corvec, Stéphanie & Mercier, Aurélie & Ovtracht, Nicolas & Chevallier, Amandine, 2019. "Urban toll and electric vehicles: The winning ticket for Lyon Metropolitan Area (France)," Research in Transportation Economics, Elsevier, vol. 73(C), pages 17-33.

    More about this item

    Keywords

    Market based instruments; Congestion pricing; Travel time; Energy;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:92:y:2016:i:c:p:76-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.