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The impact of pecuniary costs on commuting flows

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  • David McArthur

    ()

  • Gisle Kleppe
  • Inge Thorsen

    ()

  • Jan Ub√âˆe
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    Abstract

    In many cases fjords cause disconnections in the road network, calling for the service of ferries. The construction of bridges or subsea tunnels may, however, substitute the ferries, often financed by toll charges. In this paper we use data on commuting flows from a Norwegian region with a high number of ferry connections and/or tunnels and bridges. Based on a doubly-constrained gravity-based model specification we focus on how commuting flows respond to varying toll charges and ferry prices. Estimation results are used to predict how the generation and distribution of commuting flows is affected when ferry connections are substituted by bridges and tunnels. We also estimate the willingness to pay for a new road connection, and predict how commuting flows respond to alternative pricing policies for the new road link.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper874.pdf
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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p874.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p874

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    1. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers 94-95-3, California Irvine - School of Social Sciences.
    2. Parry, Ian W.H. & Bento, Antonio Miguel R., 1999. "Revenue recycling and the welfare effects of road pricing," Policy Research Working Paper Series 2253, The World Bank.
    3. A S Fotheringham, 1983. "Some theoretical aspects of destination choice and their relevance to production-constrained gravity models," Environment and Planning A, Pion Ltd, London, vol. 15(8), pages 1121-1132, August.
    4. A S Fotheringham, 1983. "A new set of spatial-interaction models: the theory of competing destinations," Environment and Planning A, Pion Ltd, London, vol. 15(1), pages 15-36, January.
    5. Glaister, Stephen & Lewis, Davis, 1978. "An integrated fares policy for transport in London," Journal of Public Economics, Elsevier, vol. 9(3), pages 341-355, June.
    6. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
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