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Which consumers benefit from congestion tolls?

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  • Glazer, Amihai
  • Niskanen, Esko

Abstract

Consider a consumer who can choose to travel on a congestible fast mode or on a congestible slow mode. Users who most value time will use the fast mode. A toll on the slow mode can induce some people who initially use that mode to switch to the fast mode. A toll on the slow mode with revenue not returned to users then necessarily reduces the welfare of all users. A toll on the fast mode may raise aggregate consumer surplus. Â

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Bibliographic Info

Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt33d88115.

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Date of creation: 01 Jan 2000
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Handle: RePEc:cdl:uctcwp:qt33d88115

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References

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  1. Layard, Richard, 1977. "The Distributional Effects of Congestion Taxes," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 44(175), pages 297-304, August.
  2. Niskanen, Esko, 1987. "Congestion tolls and consumer welfare," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 21(2), pages 171-174, April.
  3. Glazer, Amihai, 1981. "Congestion Tolls and Consumer Welfare," Public Finance = Finances publiques, , , vol. 36(1), pages 77-83.
  4. Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999. "Urban transportation," Handbook of Regional and Urban Economics, Elsevier, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999 Elsevier.
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Citations

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Cited by:
  1. Hutlkrantz, Lars & Armelius, Hanna, 2005. "The Politico-Economic Link Between Public Transport And Road Pricing: An Ex-Ante Study Of The Stockholm Road-Pricing Trial," Working Papers, Örebro University, School of Business 2005:8, Örebro University, School of Business.
  2. Jonas Westin, 2011. "Labor Market Effects of Road Pricing in a Population with Continuously Distributed Value of Time," ERSA conference papers, European Regional Science Association ersa10p1458, European Regional Science Association.
  3. Börjesson, Maria & Kristoffersson, Ida, 2012. "Estimating welfare effects of congestion charges in real world settings," Working papers in Transport Economics, CTS - Centre for Transport Studies Stockholm (KTH and VTI) 2012:13, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
  4. Leonid Engelson & Ida Kristoffersson & Mohammad Saifuzzaman & André De Palma & Kiarash Motamedi, 2013. "Comparison of two dynamic transportation models: The case of Stockholm congestion charging," Working Papers, HAL hal-00779285, HAL.
  5. Lisa Schweitzer & Brian Taylor, 2008. "Just pricing: the distributional effects of congestion pricing and sales taxes," Transportation, Springer, Springer, vol. 35(6), pages 797-812, November.
  6. Lindsey, Robin & Wang, Judith & Yang, Hai, 2010. "Nonlinear Pricing on Private Roads with Congestion and Toll Collection Costs," Working Papers, University of Alberta, Department of Economics 2010-3, University of Alberta, Department of Economics.
  7. Kutzbach, Mark J., 2009. "Motorization in developing countries: Causes, consequences, and effectiveness of policy options," Journal of Urban Economics, Elsevier, Elsevier, vol. 65(2), pages 154-166, March.
  8. Hultkrantz, Lars & Nilsson, Jan-Eric & Arvidsson, Sara, 2012. "Voluntary internalization of speeding externalities with vehicle insurance," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(6), pages 926-937.
  9. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 40(7), pages 602-620, August.
  10. Holgun-Veras, Jos & Cetin, Mecit, 2009. "Optimal tolls for multi-class traffic: Analytical formulations and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 43(4), pages 445-467, May.
  11. 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, The World Bank 4652, The World Bank.
  12. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008.

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