Pricing Urban Congestion
This paper reviews literature on the optimal design of pricing policies to reduce urban automobile congestion. The implications of a range of complicating factors are considered; these include traffic bottlenecks, constraints on which roads and freeway lanes in the road network can be priced, driver heterogeneity, private toll operators, other externalities besides congestion, and interactions between congestion taxes and the broader fiscal system. I also briefly discuss the incidence of congestion taxes and experience with this policy in the United States and elsewhere. Although the economics literature on congestion pricing has advanced considerably over the past 20 years, research is still needed on the empirical measurement of second-best efficient tolls for urban centers and whether alternative design features have substantial implications for efficiency. More research is also needed on the design of schemes to promote feasibility by compensating adversely affected groups with minimal loss in economic efficiency.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 1 (2009)
Issue (Month): 1 (09)
|Contact details of provider:|| Postal: Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA|
Web page: http://www.annualreviews.org
|Order Information:||Web: http://www.annualreviews.org/action/ecommerce|
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.:
- Brownstone, David & Small, Kenneth A., 2003.
"Valuing Time and Reliability: Assessing the Evidence from Road Pricing Demonstrations,"
University of California Transportation Center, Working Papers
qt95z0p35k, University of California Transportation Center.
- Brownstone, David & Small, Kenneth A., 2005. "Valuing time and reliability: assessing the evidence from road pricing demonstrations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 279-293, May.
- Small, Kenneth A. & Gomez-Ilbanez, Jose A., 1998. "Road Pricing for Congestion Management: The Transition from Theory to Policy," University of California Transportation Center, Working Papers qt8kk909p1, University of California Transportation Center.
- Newbery, David M G & Santos, Georgina, 2002. "Estimating Urban Road Congestion Charges," CEPR Discussion Papers 3176, C.E.P.R. Discussion Papers.
- Safirova, Elena & Gillingham, Kenneth, 2003.
"Measuring Marginal Congestion Costs of Urban Transportation: Do Networks Matter?,"
dp-03-56, Resources For the Future.
- Safirova, Elena & Gillingham, Kenneth & Houde, Sébastien, 2007. "Measuring marginal congestion costs of urban transportation: Do networks matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 734-749, October.
- Jonathan Leape, 2006. "The London Congestion Charge," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 157-176, Fall.
- May, A. D. & Liu, R. & Shepherd, S. P. & Sumalee, A., 2002. "The impact of cordon design on the performance of road pricing schemes," Transport Policy, Elsevier, vol. 9(3), pages 209-220, July.
- Small, K.A. & Gomez-Ibanez, J.A., 1996.
95-96-4, California Irvine - School of Social Sciences.
- Liu, Louie Nan & McDonald, John F., 1998. "Efficient Congestion Tolls in the Presence of Unpriced Congestion: A Peak and Off-Peak Simulation Model," Journal of Urban Economics, Elsevier, vol. 44(3), pages 352-366, November.
- Parry, I. W. H., 2002.
"Comparing the efficiency of alternative policies for reducing traffic congestion,"
Journal of Public Economics,
Elsevier, vol. 85(3), pages 333-362, September.
- Parry, Ian, 2000. "Comparing the Efficiency of Alternative Policies for Reducing Traffic Congestion," Discussion Papers dp-00-28, Resources For the Future.
- Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
- 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.
- repec:ucp:bkecon:9781884829987 is not listed on IDEAS
- Mun, Se-il, 1994. "Traffic jams and the congestion toll," Transportation Research Part B: Methodological, Elsevier, vol. 28(5), pages 365-375, October.
- Parry, Ian W H & Bento, Antonio, 2001.
" Revenue Recycling and the Welfare Effects of Road Pricing,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 103(4), pages 645-71, December.
- 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.
- Parry, Ian & Bento, Antonio, 1999. "Revenue Recycling and the Welfare Effects of Road Pricing," Discussion Papers dp-99-45, Resources For the Future.
- Kenneth A. Small & Xuehao Chu, 2003.
Journal of Transport Economics and Policy,
University of Bath, vol. 37(3), pages 319-352, September.
- Small, K.A. & Chu, X., 1997. "Hypercongestion," Papers 97-98-12, California Irvine - School of Social Sciences.
- Small, Kenneth A. & Chu, Xuehao, 2000. "Hypercongestion," University of California Transportation Center, Working Papers qt3nn3733q, University of California Transportation Center.
- Glazer, Amihai, 1981. "Congestion Tolls and Consumer Welfare," Public Finance = Finances publiques, , vol. 36(1), pages 77-83.
- Verhoef, Erik T., 2002. "Second-best congestion pricing in general networks. Heuristic algorithms for finding second-best optimal toll levels and toll points," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 707-729, September.
- Small, Kenneth A., 1983. "The incidence of congestion tolls on urban highways," Journal of Urban Economics, Elsevier, vol. 13(1), pages 90-111, January.
- Santos, Georgina & Bhakar, Jasvinder, 2006. "The impact of the London congestion charging scheme on the generalised cost of car commuters to the city of London from a value of travel time savings perspective," Transport Policy, Elsevier, vol. 13(1), pages 22-33, January.
- Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR;CES;MSH, vol. 21(46), pages 263-310, 04.
- Braid, Ralph M., 1996. "Peak-Load Pricing of a Transportation Route with an Unpriced Substitute," Journal of Urban Economics, Elsevier, vol. 40(2), pages 179-197, September.
- Arnott, Richard & Kraus, Marvin, 1998.
"When are anonymous congestion charges consistent with marginal cost pricing?,"
Journal of Public Economics,
Elsevier, vol. 67(1), pages 45-64, January.
- Richard Arnott & Marvin Kraus, 1997. "When are Anonymous Congestion Charges Consistent with Marginal Cost Pricing?," Boston College Working Papers in Economics 354., Boston College Department of Economics.
- Richard Arnott & Marvin Kraus, 1994. "When Are Anonymous Congestion Charges Consistent with Marginal Cost Pricing?," NBER Technical Working Papers 0154, National Bureau of Economic Research, Inc.
- Richard Arnott, 1989. "Does Providing Information to Drivers Reduce Traffic Congestion?," Discussion Papers 864, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Noland, Robert B., 2001. "Relationships between highway capacity and induced vehicle travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(1), pages 47-72, January.
- Poterba, James M, 1989.
"Lifetime Incidence and the Distributional Burden of Excise Taxes,"
American Economic Review,
American Economic Association, vol. 79(2), pages 325-30, May.
- James M. Poterba, 1989. "Lifetime Incidence and the Distributional Burden of Excise Taxes," NBER Working Papers 2833, National Bureau of Economic Research, Inc.
- Poterba, J.M., 1989. "Lifetime Incidence And The Distributional Burden Of Excise Taxes," Working papers 510, Massachusetts Institute of Technology (MIT), Department of Economics.
- May, A. D. & Milne, D. S., 2000. "Effects of alternative road pricing systems on network performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(6), pages 407-436, August.
- Ramjerdi, Farideh & Minken, Harald & Østmoe, Knut, 2004. "10. Norwegian Urban Tolls," Research in Transportation Economics, Elsevier, vol. 9(1), pages 237-249, January.
- A. de Palma & F. Marchal, 2001. "Real Cases Applications of the Fully Dynamic METROPOLIS Tool-Box: an Advocacy for Large-scale Mesoscopic Transportation Systems," THEMA Working Papers 2001-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Erik T. Verhoef & Kenneth A. Small, 2004. "Product Differentiation on Roads," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 127-156, January.
- Houde, Sébastien & Safirova, Elena A. & Harrington, Winston, 2007. "Washington START Transportation Model," Discussion Papers dp-07-43, Resources For the Future.
- Robin Lindsey, 2006. "Do Economists Reach A Conclusion on Road Pricing? The Intellectual History of an Idea," Econ Journal Watch, Econ Journal Watch, vol. 3(2), pages 292-379, May.
- Parry, Ian W.H. & Small, Kenneth, 2007.
"Should Urban Transit Subsidies Be Reduced?,"
dp-07-38, Resources For the Future.
- Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, March.
When requesting a correction, please mention this item's handle: RePEc:anr:reseco:v:1:y:2009:p:461-484. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (http://www.annualreviews.org)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.