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Voting on Road Congestion Policy

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  • Russo, Antonio

Abstract

We study the political economy of urban traffic policy. We consider a city and its suburbs. The city decides, by majority voting, on a parking charge in the Central Business District (CBD) and restrictions on road space dedicated to cars. City and suburbs vote on road pricing in the CBD. Results include the following. When the majority of city voters prefers cars to public transport sufficiently more than the average voter, car charges and space restrictions are smaller than optimal. If the suburbs' voters have stronger preferences for cars than the city's, road pricing has the lowest political support among the instruments we consider. Tax exporting and imperfect government coordination may inflate total charges. This is welfare enhancing if it compensates for voters' opposition to car restraining policies. Earmarking charge revenues for public transport is welfare enhancing only if they are topped up by extra funds from a national government.

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Bibliographic Info

Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 12-310.

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Date of creation: May 2012
Date of revision: Nov 2012
Handle: RePEc:tse:wpaper:25844

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Keywords: Road pricing; parking charges; majority voting; multiple government;

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  1. De Borger, B. & Dunkerley, F. & Proost, S., 2007. "Strategic investment and pricing decisions in a congested transport corridor," Journal of Urban Economics, Elsevier, vol. 62(2), pages 294-316, September.
  2. De Borger, Bruno & Proost, Stef, 2012. "A political economy model of road pricing," Journal of Urban Economics, Elsevier, vol. 71(1), pages 79-92.
  3. Andre de Palma & Dunkerley Fay, 2006. "Trip Chaining: Who Wins Who Loses?," Energy, Transport and Environment Working Papers Series ete0605, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  4. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," University of California Transportation Center, Working Papers qt9js9z8gz, University of California Transportation Center.
  5. Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
  6. Marcucci, Edoardo & Marini, Marco, 2005. "Road pricing as a citizen-candidate game," MPRA Paper 29293, University Library of Munich, Germany.
  7. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
  8. De Donder, Philippe & Le Breton, Michel & Peluso, Eugenio, 2010. "Majority Voting in Multidimensional Policy Spaces: Kramer-Shepsle versus Stackelberg," IDEI Working Papers 593, Institut d'Économie Industrielle (IDEI), Toulouse.
  9. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
  10. 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.
  11. Richard Arnott & Eren Inci, 2005. "An Integrated Model of Downtown Parking and Traffic Congestion," Boston College Working Papers in Economics 608, Boston College Department of Economics.
  12. Parry, Ian, 2000. "Comparing the Efficiency of Alternative Policies for Reducing Traffic Congestion," Discussion Papers dp-00-28, Resources For the Future.
  13. Bonsall, Peter & Young, William, 2010. "Is there a case for replacing parking charges by road user charges?," Transport Policy, Elsevier, vol. 17(5), pages 323-334, September.
  14. Winslott-Hiselius, Lena & Brundell-Freij, Karin & Vagland, Asa & Byström, Camilla, 2009. "The development of public attitudes towards the Stockholm congestion trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 269-282, March.
  15. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos, 2010. "Labour Supply and Commuting," IZA Discussion Papers 4798, Institute for the Study of Labor (IZA).
  16. Fay DUNKERLEY & Amihai GLAZER & Stef PROOST, 2010. "What drives gasoline taxes?," Center for Economic Studies - Discussion papers ces10.01, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  17. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-79, March.
  18. Hutlkrantz, Lars & Armelius, Hanna, 2005. "The Politico-Economic Link Between Public Transport And Road Pricing: An Ex-Ante Study Of The Stockholm Road-Pricing Trial," Working Papers 2005:8, Örebro University, School of Business.
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Cited by:
  1. DE BORGER, Bruno & PROOST, Stef, 2013. "The political economy of pricing and capacity decisions for congestible local public goods in a federal state," Working Papers 2013020, University of Antwerp, Faculty of Applied Economics.
  2. De Donder, Philippe, 2010. "Majority Voting and the Single Crossing Property when Voters Belong to Separate Groupes The Role of the Continuity and Strict Monotonicity Assumptions," IDEI Working Papers 693, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2012.
  3. DE BORGER, Bruno & PROOST, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Working Papers 2012014, University of Antwerp, Faculty of Applied Economics.

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