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Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?

  • Brueckner, Jan K.

This paper evaluates the efficacy of the urban growth boundary (UGB) as a second-best substitute for a first-best toll regime in a congested city. Numerical results show that, while a UGB is welfare improving, validating previous theoretical results, the utility gain it generates is a very small fraction of that achieved under a toll regime. Thus, the UGB is not a useful instrument for attacking the distortions caused by unpriced traffic congestion.

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File URL: http://www.sciencedirect.com/science/article/B6WJR-4NXHC9M-1/2/5b68fb3b28c3d4a1ca0b5abdcbbbebc7
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Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 16 (2007)
Issue (Month): 3-4 (November)
Pages: 263-273

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Handle: RePEc:eee:jhouse:v:16:y:2007:i:3-4:p:263-273
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622881

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  1. Arnott, Richard J., 1979. "Unpriced transport congestion," Journal of Economic Theory, Elsevier, vol. 21(2), pages 294-316, October.
  2. Thomas J. Nechyba & Randall P. Walsh, 2004. "Urban Sprawl," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 177-200, Fall.
  3. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July.
  4. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
  5. Ding, Chengri & Knaap, Gerrit J. & Hopkins, Lewis D., 1999. "Managing Urban Growth with Urban Growth Boundaries: A Theoretical Analysis," Journal of Urban Economics, Elsevier, vol. 46(1), pages 53-68, July.
  6. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
  7. Edward L. Glaeser & Matthew E. Kahn, 2003. "Sprawl and Urban Growth," NBER Working Papers 9733, National Bureau of Economic Research, Inc.
  8. Kanemoto, Yoshitsugu, 1977. "Cost-benefit analysis and the second best land use for transportation," Journal of Urban Economics, Elsevier, vol. 4(4), pages 483-503, October.
  9. Duncan Black & Vernon Henderson, 1997. "Urban Growth," NBER Working Papers 6008, National Bureau of Economic Research, Inc.
  10. Pines, David & Sadka, Efraim, 1985. "Zoning, first-best, second-best, and third-best criteria for allocating land for roads," Journal of Urban Economics, Elsevier, vol. 17(2), pages 167-183, March.
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