IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v209y2026ics0965856426001400.html

Impact of personal vehicle emission tax policy and Pareto-improving strategies on travel and urban performance

Author

Listed:
  • Li, Yao
  • He, Haonan
  • Long, Jiancheng
  • Liu, Haoxiang
  • Wang, Shuai

Abstract

Personal vehicle emission taxes (PVET) are attractive for reducing congestion and emissions, yet they often face political resistance because households perceive welfare losses—especially among long-distance suburban commuters. We develop an integrated welfare–transport–land-use equilibrium model for a core–suburb monocentric city with peak-hour highway bottleneck congestion and railway crowding, in which commuters jointly choose residence, mode, and departure time under PVET. The framework clarifies a structural coordination problem: PVET is effective in reducing highway traffic, emissions, and suburban land use, but it also lowers equilibrium utility by raising generalized commuting costs. We then compare three transport-based compensation instruments—highway capacity expansion, transit fare subsidies, and headway reductions—under a weak-versus-strong Pareto criterion. Transport-only compensation can restore (or even raise) welfare, but it tends to relax the city boundary, making welfare improvements and suburban expansion move together. Introducing a suburban land tax changes the frontier by acting directly on the land-use margin: when paired with PVET and a transport instrument, it opens a strong-Pareto corridor in which welfare is strictly higher and the suburban boundary is strictly smaller than in the baseline, with a subset delivering simultaneous welfare gains, spatial compaction, and emission reductions (“triple-win”). A case study of the Beijing–Langfang commuting corridor illustrates how these coordinated policy packages provide an illustrative basis for policy comparison and quantify the attainable improvements in welfare, urban sprawl, and emissions.

Suggested Citation

  • Li, Yao & He, Haonan & Long, Jiancheng & Liu, Haoxiang & Wang, Shuai, 2026. "Impact of personal vehicle emission tax policy and Pareto-improving strategies on travel and urban performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 209(C).
  • Handle: RePEc:eee:transa:v:209:y:2026:i:c:s0965856426001400
    DOI: 10.1016/j.tra.2026.104999
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856426001400
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2026.104999?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:209:y:2026:i:c:s0965856426001400. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.