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Traffic congestion and accidents

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Author Info
Schrage, Andrea

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Abstract

Obstructions caused by accidents can trigger or exacerbate traffic congestion. This paper derives the efficient traffic pattern for a rush hour with congestion and accidents and the corresponding road toll. Compared to the model without accidents, where the toll equals external costs imposed on drivers using the road at the same time, a new insight arises: An optimal toll also internalizes the expected increase in future congestion costs. Since accidents affect more drivers if traffic volumes are rising than when they are declining, the efficient charge depends upon the demand for road use during the rest of the peak period.

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Publisher Info
Paper provided by University of Regensburg, Department of Economics in its series Regensburger Diskussionsbeiträge zur Wirtschaftswissenschaft with number 419.

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Date of creation: 20 Nov 2006
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Handle: RePEc:bay:rdwiwi:736

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Related research
Keywords: Verkehrsstau; Verkehrsunfall; Straßenbenutzungsgebühr;

Find related papers by JEL classification:
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
D62 - Microeconomics - - Welfare Economics - - - Externalities
R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion

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  1. Henderson, J. V., 1974. "Road congestion : A reconsideration of pricing theory," Journal of Urban Economics, Elsevier, vol. 1(3), pages 346-365, July. [Downloadable!] (restricted)
  2. Peirson, John & Skinner, Ian & Vickerman, Roger, 1998. "The Microeconomic Analysis of the External Costs of Road Accidents," Economica, London School of Economics and Political Science, vol. 65(259), pages 429-40, August. [Downloadable!] (restricted)
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  3. Vitaliano, Donald F & Held, James, 1991. "Road Accident External Effects: An Empirical Assessment," Applied Economics, Taylor and Francis Journals, vol. 23(2), pages 373-78, February.
  4. Parry, Ian W. H., 2004. "Comparing alternative policies to reduce traffic accidents," Journal of Urban Economics, Elsevier, vol. 56(2), pages 346-368, September. [Downloadable!] (restricted)
    Other versions:
  5. Arnott, R. & De Palma, A. & Lindseyt, R., 1995. "Recent Developments in the Bottleneck Model," Papers 9523, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
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  6. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May. [Downloadable!] (restricted)
  7. Jens Schade & Bernhard Schlag, 2000. "Acceptability of Urban Transport Pricing," Research Reports 72, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  8. C. Robin Lindsey & Erik T. Verhoef, 1999. "Congestion Modelling," Tinbergen Institute Discussion Papers 99-091/3, Tinbergen Institute. [Downloadable!]
  9. Aaron S. Edlin & Pinar Karaca-Mandic, 2006. "The Accident Externality from Driving," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 931-955, October. [Downloadable!] (restricted)
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  10. Hau, Timothy D., 1992. "Economic fundamentals of road pricing : a diagrammatic analysis," Policy Research Working Paper Series 1070, The World Bank. [Downloadable!]
  11. Andrew Dickerson & John Peirson & Roger Vickerman, 1998. "Road Accidents and Traffic Flows: An Econometric Investigation," Studies in Economics 9809, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
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