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Congestion pricing and long term urban form: Application to Ile-de-France

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Author Info

  • Michel De Lara

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - Ecole des Ponts ParisTech)

  • André De Palma

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, ENS Cachan - Ecole Normale Supérieure de Cachan - École normale supérieure de Cachan - ENS Cachan)

  • Moez Kilani

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - Ecole des Ponts ParisTech)

  • Serge Piperno

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - Ecole des Ponts ParisTech)

Abstract

We propose an efficient algorithm that solves the monocentric city model with traffic congestion, and use it to explore the impact of congestion pricing on urban forms and, hence, on transport volume, CO2 emissions and energy consumption. The application focuses on the region Ie-de-France. Four pricing policies are considered: no toll, where transport cost is equal to the vehicle operating cost, cordon toll where users pay the toll when they drive inside cordon region linear toll (optimal under the class of linear tolls) and optimal toll (or first-best toll). The linear toll is equivalent to an increase in the vehicle operating cost. It performs well with respect to the first-best solution but, since it applies identically to all trips, it is not likely to be relevant in practice. By comparison to the no-toll situation, optimal congestion pricing reduces the radius of the city and the average travel distance by 34% and 15%, respectively.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number hal-00348439.

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Date of creation: Dec 2008
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Handle: RePEc:hal:wpaper:hal-00348439

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Related research

Keywords: Monocentric model; Equilibrium computation; Transport pricing; Long term impacts;

References

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  1. Erik Verhoef, 2004. "Second-best Congestion Pricing Schemes in the Monocentric City," ERSA conference papers ersa04p408, European Regional Science Association.
  2. Arnott, Richard J., 1979. "Unpriced transport congestion," Journal of Economic Theory, Elsevier, vol. 21(2), pages 294-316, October.
  3. Arnott, Richard J & MacKinnon, James G, 1978. "Market and Shadow Land Rents with Congestion," American Economic Review, American Economic Association, vol. 68(4), pages 588-600, September.
  4. Boarnet Marlon G., 1994. "The Monocentric Model and Employment Location," Journal of Urban Economics, Elsevier, vol. 36(1), pages 79-97, July.
  5. Jan Rouwendal & J. Willemijn van der Straaten, 2008. "The Costs and Benefits of Providing Open Space in Cities," Tinbergen Institute Discussion Papers 08-001/3, Tinbergen Institute.
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  7. Riley, John G., 1974. "Optimal residential density and road transportation," Journal of Urban Economics, Elsevier, vol. 1(2), pages 230-249, April.
  8. Brueckner, Jan & Selod, Harris, 2004. "The Political Economy of Urban Transport System Choice," CEPR Discussion Papers 4682, C.E.P.R. Discussion Papers.
  9. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
  10. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
  11. Kanemoto, Yoshitsugu, 1977. "Cost-benefit analysis and the second best land use for transportation," Journal of Urban Economics, Elsevier, vol. 4(4), pages 483-503, October.
  12. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
  13. Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999. "Urban transportation," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999 Elsevier.
  14. Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 263-310, 04.
  15. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
  16. Daniel, Joseph I. & Bekka, Khalid, 2000. "The Environmental Impact of Highway Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 47(2), pages 180-215, March.
  17. Robert M. Solow, 1973. "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 602-618, Autumn.
  18. McMillen, Daniel P. & Jarmin, Ronald & Thorsnes, Paul, 1992. "Selection bias and land development in the monocentric city model," Journal of Urban Economics, Elsevier, vol. 31(3), pages 273-284, May.
  19. Robson, Arthur J., 1976. "Cost-benefit analysis and the use of urban land for transportation," Journal of Urban Economics, Elsevier, vol. 3(2), pages 180-191, April.
  20. de Palma, André & Lindsey, Robin, 2006. "Modelling and evaluation of road pricing in Paris," Transport Policy, Elsevier, vol. 13(2), pages 115-126, March.
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Citations

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Cited by:
  1. Vincent Breteau & Fabien Leurent, 2011. "Job decentralization and transportation use in a monocentric city," Working Papers hal-00637406, HAL.
  2. André De Palma & Moez Kilani & Michel De Lara & Serge Piperno, 2011. "Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France," Post-Print hal-00348437, HAL.
  3. André DE PALMA & Moez KILANI & Michel DE LARA & Serge PIPERNO, 2011. "Cordon pricing in the monocentric city: theory and application to Paris region," Discussion Papers (REL - Recherches Economiques de Louvain) 2011027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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