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Road Supply in Central London: Addition of an Ignored Social Cost

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  • Rouhani, Omid M.
  • Knittel, Christopher R.
  • Niemeier, Debbie

Abstract

Studies examining the social cost of driving usually ignore the opportunity cost of having roads in place : the associated land rents. Especially for geographic regions where land is valuable, including the rent costs may even lead governments to close some roads. By using the London congestion charging zone case, a more general long-run social cost curve is calculated with the addition of the rents. Based on the optimal road usage concept, this study found that including the rents in the cost/ benefit analysis significantly affects the results and can increase the social cost by up to 200% and decrease the optimal road usage by 40%.

Suggested Citation

  • Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
    • Handle: RePEc:ags:ndjtrf:207427
    DOI: 10.22004/ag.econ.207427
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rouhani, Omid, 2017. "Manage energy/environmental footprints of travel: A proposed solution/methodology," MPRA Paper 83344, University Library of Munich, Germany.
    2. M. Rouhani, Omid, 2015. "Revenue Risk Mitigation Options for Toll Roads," MPRA Paper 67662, University Library of Munich, Germany.
    3. M Rouhani, Omid, 2016. "Social welfare analysis of HOV to HOT conversion," MPRA Paper 75816, University Library of Munich, Germany.
    4. Rouhani, M. Rouhani, 2018. "Financing Sustainability and Resiliency of Transportation Infrastructure in an Era of Fiscal Constraint," MPRA Paper 88504, University Library of Munich, Germany.
    5. Hany M. Elshamy & Khaled I. Sayed Ahmed, 2017. "Green Fiscal Reforms, Environment and Sustainable Development," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 1(1), pages 48-52.
    6. M. Rouhani, Omid, 2019. "Transportation Project Evaluation Methods/Approaches," MPRA Paper 91451, University Library of Munich, Germany.
    7. Rouhani, Omid, 2021. "Transportation Project Evaluation Methods/Approaches- Version 2," MPRA Paper 105729, University Library of Munich, Germany.

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