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Road Pricing, Traffic Congestion and Economic Welfare: A Note

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Author Info
Ingo_Böbel (International University of Monaco)
Casimir_de_Rham (International University of Monaco)

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Abstract

Only recently, the subject of road pricing to reduce traffic congestion gained increasing importance in Europe. This paper uses a standard microeconomic approach to show that road user price charging to avoid traffic congestion is optimal from a society’s point of view as it improves economic efficiency of allocating a scarce resource (road space) by reducing the welfare loss (as being measured by a loss in consumer surplus) for everyone in the society.

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Publisher Info
Paper provided by EconWPA in its series Microeconomics with number 0411001.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 11 pages
Date of creation: 01 Nov 2004
Date of revision:
Handle: RePEc:wpa:wuwpmi:0411001

Note: Type of Document - zip; pages: 11. 11 pages, 8 figures included, zip-file
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Web page: http://129.3.20.41

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Related research
Keywords: Road pricing; Tragedy of the Commons; Economic Welfare;

Find related papers by JEL classification:
D - Microeconomics
D - Microeconomics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ingemar Ahlstrand, 2001. "The Politics and Economics of Transport Investment and Pricing in Stockholm," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(3), pages 473-489, September. [Downloadable!] (restricted)
  2. Chu, Xuehao, 1999. "Alternative congestion pricing schedules," Regional Science and Urban Economics, Elsevier, vol. 29(6), pages 697-722, November. [Downloadable!] (restricted)
  3. Charles Raux & Stéphanie Souche, 2004. "The Acceptability of Urban Road Pricing: A Theoretical Analysis Applied to Experience in Lyon," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(2), pages 191-215, May. [Downloadable!] (restricted)
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