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The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters

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Author Info
Richard Arnott (Department Of Economics, Boston College)
Andre de Palma (University Of Geneva)
Robin Lindsey (University Of Alberta)

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Abstract

Recent success in introducing road pricing, as well as recent polls suggest that road pricing schemes are politically viable if a large majority of drivers benefit. In this paper we analyze the welfare effects of an optimal time-varying toll impose during the morning commute. The toll tends to benefit drivers with high unit values of travel time and schedule delay. Other drivers can become worse off even with an equal per-capita rebate. A capacity expansion benefits drivers in proportion to their trip costs. If initial capacity is sufficiently small, a toll-financed expansion leaves all drivers better off.

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Publisher Info
Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 231.

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Date of creation: Dec 1993
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Handle: RePEc:boc:bocoec:231

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  1. Wuping Xin & David Levinson, 2006. "Stochastic congestion and pricing model with endogenous departure time selection and heterogeneous travelers," Working Papers 000029, University of Minnesota: Nexus Research Group. [Downloadable!]
  2. André de Palma & Néjia Zaouali, 2007. "Monétarisation des externalités de transport : un état de l'art," THEMA Working Papers 2007-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  3. Erik Verhoef, 1997. "Time-Varying Tolls in a Dynamic Model of Road Traffic Congestion with Elastic Demand," Tinbergen Institute Discussion Papers 97-028/3, Tinbergen Institute. [Downloadable!]
  4. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 1999. "Toll competition among congested roads," Documentos de Trabajo 54, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
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  5. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008. [Downloadable!]
  6. Fosgerau, Mogens & Jensen, Henning F., 2008. "A note on the existence of Nash equilibrium in the stochastic bottleneck model," MPRA Paper 12012, University Library of Munich, Germany. [Downloadable!]
  7. John Hartman, 2007. "The Relevance of Heterogeneity in a Congested Route Network with Tolls: An Analysis of Two Experiments Using Actual Waiting Times and Monetized Time Costs," University of California at Santa Barbara, Economics Working Paper Series 15-07, Department of Economics, UC Santa Barbara. [Downloadable!]
  8. Richard Arnott, 1997. "Congestion Tolling and Urban Spatial Structure," Boston College Working Papers in Economics 389., Boston College Department of Economics. [Downloadable!]
  9. Timilsina, Govinda R. & Dulal, Hari B., 2008. "Fiscal policy instruments for reducing congestion and atmospheric emissions in the transport sector : a review," Policy Research Working Paper Series 4652, The World Bank. [Downloadable!]
  10. Romeo Danielis & Edoardo Marcucci, . "Bottleneck Congestion and Modal Split Revisited," Working Papers 1999.5, Fondazione Eni Enrico Mattei. [Downloadable!]
  11. Erik Verhoef & Jan Rouwendal & Piet Rietveld, 1997. "Congestion caused by Speed Differences," Tinbergen Institute Discussion Papers 97-105/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  12. Parry, Ian W.H. & Walls, Margaret & Harrington, Winston, 2007. "Automobile Externalities and Policies," Discussion Papers dp-06-26, Resources For the Future. [Downloadable!]
    Other versions:
  13. Erik Verhoef & Mark Lijesen, 1998. "The Economic Effects of Road Pricing in the Randstad Area," Tinbergen Institute Discussion Papers 98-078/3, Tinbergen Institute. [Downloadable!]
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