Pricing, Capacity Choice and Financing in Transportation Networks
Abstract
This paper explores the interrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically investigates its ins and outs in a network environment and under various types of second-best regulation. The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint. It is for instance shown that application of the principle over an entire network may cause user prices to increase more strongly in initially mildly congested areas compared to heavily congested areas, and that a flat kilometre charge, provided accompanied with optimal capacity policies, may result in first-best efficiency gains.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-027/3.Length:
Date of creation: 27 Mar 2003
Date of revision:
Handle: RePEc:dgr:uvatin:20030027
Contact details of provider:
Web page: http://www.tinbergen.nl
Related research
Keywords: Traffic congestion; Road pricing; Road capacity choice.;Other versions of this item:
- Erik T. Verhoef & Jan Rouwendal, 2004. "Pricing, Capacity Choice, and Financing in Transportation Networks," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 405-435.
- Erik Teodoor Verhoef & Jan Rouwendal, 2003. "Pricing, Capacity Choice and Financing in Transportation Networks," ERSA conference papers ersa03p41, European Regional Science Association.
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Government Pricing and Policy
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-27 (All new papers)
- NEP-COM-2003-04-27 (Industrial Competition)
- NEP-GEO-2003-04-27 (Economic Geography)
- NEP-URE-2003-04-27 (Urban & Real Estate Economics)
References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- De Borger B. & Mayeres I., 2004.
"Taxation of car-ownership, car use and public transport: insight derived from a discrete choice numerical optimisation model,"
Working Papers
2004021, University of Antwerp, Faculty of Applied Economics.
- De Borger Bruno & Mayeres Inge, 2004. "Taxation of car ownership, car use and public transport: insights derived from a discrete choice numerical optimisation model," Energy, Transport and Environment Working Papers Series ete0413, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- Ubbels, Barry & Verhoef, Erik T., 2008.
"Governmental competition in road charging and capacity choice,"
Regional Science and Urban Economics,
Elsevier, vol. 38(2), pages 174-190, March.
- Barry Ubbels & Erik Verhoef, 2006. "Governmental Competition in Road Charging and Capacity Choice," Tinbergen Institute Discussion Papers 06-036/3, Tinbergen Institute, revised 10 Sep 2007.
- Piet Rietveld & Stefan van Woudenberg, 2007.
"Second Best Decision Making of Railway Operators: How to fix Fares, Frequency and Vehicle Size,"
Tinbergen Institute Discussion Papers
07-007/3, Tinbergen Institute.
- Piet Rietveld & Stefan van Woudenberg, 2007. "Second-best Decision Making of Railway Operators: How to Fix Fares, Frequency and Vehicle Size," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(3), pages 363-385, September.
- Erik T. Verhoef & Andrew Koh & Simon Shepherd, 2008.
"Pricing, Capacity and Long-run Cost Functions for First-best and Second-best Network Problems,"
Tinbergen Institute Discussion Papers
08-056/3, Tinbergen Institute.
- Verhoef, Erik T. & Koh, Andrew & Shepherd, Simon, 2010. "Pricing, capacity and long-run cost functions for first-best and second-best network problems," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 870-885, August.
- De Borger, Bruno & Mayeres, Inge, 2007. "Optimal taxation of car ownership, car use and public transport: Insights derived from a discrete choice numerical optimization model," European Economic Review, Elsevier, vol. 51(5), pages 1177-1204, July.
- Bruno de Borger & Stef Proost, 2004.
"Vertical and horizontal tax competition in the transport sector,"
Reflets et perspectives de la vie économique,
De Boeck Université, vol. 0(4), pages 45-64.
- De Borger Bruno & Stef Proost, 2004. "Vertical and horizontal tax competition in the transport sector," Energy, Transport and Environment Working Papers Series ete0412, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- De Borger B. & Proost S., 2004. "Vertical and horizontal tax competition in the transport sector," Working Papers 2004022, University of Antwerp, Faculty of Applied Economics.
- Feng Xie & David Levinson, 2009.
"Governance choice on a serial network,"
Public Choice,
Springer, vol. 141(1), pages 189-212, October.
- Feng Xie & David Levinson, 2009. "Governance choice on a serial network," Working Papers 200904, University of Minnesota: Nexus Research Group.
- Andrew Koh & Simon Shepherd & Agachai Sumalee, 2009. "Second best toll and capacity optimisation in networks: solution algorithm and policy implications," Transportation, Springer, vol. 36(2), pages 147-165, March.
- Erik T. Verhoef & Herbert Mohring, 2007. "Self-Financing Roads," Tinbergen Institute Discussion Papers 07-068/3, Tinbergen Institute.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:dgr:uvatin:20030027For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (webmaster-tinbergen).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

