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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.

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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 qt70v033nx.

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Date of creation: 01 Jan 2000
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Handle: RePEc:cdl:uctcwp:qt70v033nx

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Keywords: Social and Behavioral Sciences;

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References

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  1. 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.
  2. Glazer, Amihai, 1981. "Congestion Tolls and Consumer Welfare," Public Finance = Finances publiques, , , vol. 36(1), pages 77-83.
  3. 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.
  4. Niskanen, Esko, 1987. "Congestion tolls and consumer welfare," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 21(2), pages 171-174, April.
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Citations

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Cited by:
  1. 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.
  2. Armelius, Hanna & Hultkrantz, Lars, 2006. "The politico-economic link between public transport and road pricing: An ex-ante study of the Stockholm road-pricing trial," Transport Policy, Elsevier, Elsevier, vol. 13(2), pages 162-172, March.
  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. 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.
  7. 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.
  8. 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.
  9. 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.
  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. 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.
  12. 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.

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