Second-best Congestion Pricing Schemes in the Monocentric City
AbstractPaper submission from Erik Verhoef (email@example.com)Discussion Paper Submission Form - STEP 1This discussion paper abstract is submitted by Erik Verhoef (firstname.lastname@example.org)Template-Type: ReDIF-Paper 1.0Series: Tinbergen Institute Discussion PapersCreation-Date: Number: Author-Name: Erik T VerhoefAuthor-Email: email@example.comAuthor-Workplace-Name: VUTitle: SECOND-BEST CONGESTION PRICING SCHEMES IN THE MONOCENTRIC CITYAbstract:This paper considers second-best congestion pricing in the monocentric city, with endogenous residential density and endogenous labour supply. A spatial general equilibrium model is developed that allows consideration of the three-way interactions between urban density, traffic congestion and labour supply. Congestion pricing schemes are analyzed that are second-best ‘by design’ (and not because distortions exist elsewhere in the spatial economy), like cordon charging and flat kilometre charges. Both for Cobb-Douglas utility and for CES utility, the analyses suggest that the relative welfare losses from second-best pricing, compared to first-best pricing, are surprisingly small.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-110/3.
Date of creation: 04 Oct 2004
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Traffic congestion; second-best pricing; urban structure; spatial general equilibrium;
Other versions of this item:
- Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November.
- Erik Verhoef, 2004. "Second-best Congestion Pricing Schemes in the Monocentric City," ERSA conference papers ersa04p408, European Regional Science Association.
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-21 (All new papers)
- NEP-GEO-2004-10-21 (Economic Geography)
- NEP-MIC-2004-10-21 (Microeconomics)
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