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Urban transport pricing reform with two levels of government: A case study of Brussels

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  • Proost, Stef
  • Sen, Ahksaya

Abstract

This paper analyses two challenges in the reform of urban transport pricing. First the construction of an optimal package of urban transport pricing instruments assuming one benevolent welfare maximizer. It is found that parking and tolling are the most important elements of the optimal package and that these policy instruments are sub-additive in their benefits. The second problem is the use of pricing instruments by different government levels: the urban government controls parking fees and the regional government controls a cordon toll. It is found that the overall efficiency losses in the Nash and Stackelberg equilibria are limited.

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Bibliographic Info

Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 13 (2006)
Issue (Month): 2 (March)
Pages: 127-139

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Handle: RePEc:eee:trapol:v:13:y:2006:i:2:p:127-139

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References

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  1. Bev Dahlby, 1996. "Fiscal externalities and the design of intergovernmental grants," International Tax and Public Finance, Springer, vol. 3(3), pages 397-412, July.
  2. Arnott, Richard & Grieson, Ronald E., 1981. "Optimal fiscal policy for a state or local government," Journal of Urban Economics, Elsevier, vol. 9(1), pages 23-48, January.
  3. Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
  4. McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September.
  5. Stef Proost & Kurt Van Dender & C. Courcelle & B. De Borger & J. Peirson & D. Sharp & R. Vickerman & E. Gibbons & M. O'Mahony & Q. Heaney & J. Van den Bergh & E. Verhoef, 2001. "How large is the gap between present and efficient transport prices in Europe?," Energy, Transport and Environment Working Papers Series ete0120, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  6. Mayeres, Inge & Proost, Stef, 1997. " Optimal Tax and Public Investment Rules for Congestion Type of Externalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(2), pages 261-79, June.
  7. DE BORGER, Bruno & PROOST, Stef & VAN DENDER, Kurt, 2004. "Congestion and tax competition in a parallel network," CORE Discussion Papers 2004018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. 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.
  9. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
  10. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
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Citations

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Cited by:
  1. Inturri, Giuseppe & Ignaccolo, Matteo, 2011. "Modelling the impact of alternative pricing policies on an urban multimodal traffic corridor," Transport Policy, Elsevier, vol. 18(6), pages 777-785, November.
  2. 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.
  3. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
  4. 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.
  5. Rodrigo Garrido, 2008. "Road Pricing for Hazardous Materials Transportation in Urban Networks," Networks and Spatial Economics, Springer, vol. 8(2), pages 273-285, September.
  6. Rotaris, Lucia & Danielis, Romeo & Marcucci, Edoardo & Massiani, Jérôme, 2010. "The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost-benefit analysis assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 359-375, June.
  7. Sen, Akshaya Kumar & Tiwari, Geetam & Upadhyay, Vrajaindra, 2013. "Strategies of state and local government in management of urban transport problems – A case of Delhi," Research in Transportation Economics, Elsevier, vol. 38(1), pages 11-21.
  8. Vickerman, Roger, 2008. "Provision of public transport under conflicting regulatory regimes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1176-1182, November.

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