The Fundamental Law of Road Congestion: Evidence from US cities
AbstractAbstract: We investigate the relationship between interstate highways and highway vehicle kilometers traveled (vkt) in us cities. We find that vkt increases proportionately to highways and identify three important sources for this extra vkt: an increase in driving by current residents; an increase in transportation intensive production activity; and an inflow of new residents. The provision of public transportation has no impact on vkt. We also estimate the aggregate city level demand for vkt and find it to be very elastic. We conclude that an increased provision of roads or public transit is unlikely to relieve congestion and that the current provision of roads exceeds the optimum given the absence of congestion pricing.
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Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-370.
Length: 70 pages
Date of creation: 08 Sep 2009
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highways; vehiclekilometers traveled; public transport; congestion.;
Other versions of this item:
- Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-52, October.
- Gilles Duranton & Matthew A. Turner, 2009. "The Fundamental Law of Road Congestion: Evidence from US cities," NBER Working Papers 15376, National Bureau of Economic Research, Inc.
- Duranton, Gilles & Turner, Matthew A, 2009. "The Fundamental Law of Road Congestion: Evidence from US cities," CEPR Discussion Papers 7462, C.E.P.R. Discussion Papers.
- Gilles Duranton & Matthew A. Turner, 2009. "The Fundamental Law of Road Congestion: Evidence from US Cities," SERC Discussion Papers 0030, Spatial Economics Research Centre, LSE.
- L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-19 (All new papers)
- NEP-GEO-2009-09-19 (Economic Geography)
- NEP-URE-2009-09-19 (Urban & Real Estate Economics)
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