Second-best congestion pricing in general static transportation networks with elastic demands
This paper studies the second-best problem where not all links of a congestedtransportation network can be tolled. The second-best tax rule for thisproblem is derived for general static networks, so that the solution presentedis valid for any graph of the network and any set of tolling points available.A number of known second-best tax rules are shown to be special cases of thegeneral solution presented. It is further demonstrated that, for instance byusing the concept of 'virtual links', the same method can be applied to abroader class of second-best problems in static networks. Finally, a smallnetwork is used to demonstrate numerically that an interior second-bestoptimum need not always be unique, and need not always exist. However, bothexamples require extreme differences in marginal external costs across links,and a non-optimal toll-point to be used, which casts doubt on the practicalrelevance of this complication.
(This abstract was borrowed from another version of this item.)
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.
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.:
- Glazer, Amihai & Niskanen, Esko, 2001.
"Parking fees and congestion,"
University of California Transportation Center, Working Papers
qt9h51t02k, University of California Transportation Center.
- Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990.
"Economics of a bottleneck,"
Journal of Urban Economics,
Elsevier, vol. 27(1), pages 111-130, January.
- Braid, Ralph M., 1989. "Uniform versus peak-load pricing of a bottleneck with elastic demand," Journal of Urban Economics, Elsevier, vol. 26(3), pages 320-327, November.
- A. de Palma & Y. Nesterov, 1997.
"Optimization formulations and static equilibrium in congested transportation networks,"
THEMA Working Papers
97-17, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- de PALMA, André & NESTEROV, Yurii, 1998. "Optimization formulations and static equilibrium in congested transportation networks," CORE Discussion Papers 1998061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
- Erik T. Verhoef, 2000. "Second-Best Congestion Pricing in General Networks - Algorithms for Finding Second-Best Optimal Toll Levels and Toll Points," Tinbergen Institute Discussion Papers 00-084/3, Tinbergen Institute.
- Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
- Yan, Hai & Lam, William H. K., 1996. "Optimal road tolls under conditions of queueing and congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(5), pages 319-332, September.
- 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.
- 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.
- Liu, Louie Nan & McDonald, John F., 1999. "Economic efficiency of second-best congestion pricing schemes in urban highway systems," Transportation Research Part B: Methodological, Elsevier, vol. 33(3), pages 157-188, April.
- Verhoef, Erik T. & Emmerink, Richard H. M. & Nijkamp, Peter & Rietveld, Piet, 1996. "Information provision, flat and fine congestion tolling and the efficiency of road usage," Regional Science and Urban Economics, Elsevier, vol. 26(5), pages 505-529, August.
- Wilson, John D., 1983. "Optimal road capacity in the presence of unpriced congestion," Journal of Urban Economics, Elsevier, vol. 13(3), pages 337-357, May.
- 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.
- Arnott, Richard J., 1979. "Unpriced transport congestion," Journal of Economic Theory, Elsevier, vol. 21(2), pages 294-316, October.
- Sullivan, Arthur M., 1983. "Second-best policies for congestion externalities," Journal of Urban Economics, Elsevier, vol. 14(1), pages 105-123, July.
- Verhoef, Erik T., 1999.
"Time, speeds, flows and densities in static models of road traffic congestion and congestion pricing,"
Regional Science and Urban Economics,
Elsevier, vol. 29(3), pages 341-369, May.
- Erik Teodoor Verhoef, 1998. "Time, speeds, flows and densities in static models of road traffic congestion and congestion pricing," ERSA conference papers ersa98p156, European Regional Science Association.
- Erik Verhoef, 1997. "Time, Speeds, Flows and Densities in Static Models of Road Traffic Congestion and Congestion Pricing," Tinbergen Institute Discussion Papers 97-070/3, Tinbergen Institute.
- d'Ouville, Edmond L. & McDonald, John F., 1990. "Optimal road capacity with a suboptimal congestion toll," Journal of Urban Economics, Elsevier, vol. 28(1), pages 34-49, July.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:32:y:2002:i:3:p:281-310. 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: (Shamier, Wendy)
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.