Carpooling and Congestion Pricing: HOV and HOT Lanes
AbstractIt is often argued in the US that HOV (high occupancy vehicle) lanes are wasteful and should be converted to HOT (high occupancy vehicles and toll lanes). In this paper, we construct a simple model of commuters using a highway with multiple lanes, in which commuters are heterogeneous in their carpool organization costs. We first look at the HOV lanes and investigate under what conditions introducing HOV lanes is socially beneficial. Then we examine whether converting HOV lanes to HOT lanes improves the efficiency of road use. It is shown that the result depends on functional form and parameter values. We also discuss the effect of alternative policies: simple congestion pricing without lane division; and congestion pricing with HOV lanes. The analysis using specific functional form is presented to explicitly obtain the conditions determining the rankings of HOV, HOT, and other policies based on aggregate social cost.
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Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 719.
Date of creation: 01 Nov 2009
Date of revision:
Publication status: published, Regional Science and Urban Economics 40, 173-186, 2010
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Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
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HOV lanes; HOT lanes; congestion pricing; transportation economics;
Other versions of this item:
- Konishi, Hideo & Mun, Se-il, 2010. "Carpooling and congestion pricing: HOV and HOT lanes," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 173-186, July.
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
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