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Urban transport pricing reform with two levels of government: A case study of Brussels

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  • Proost, Stef
  • Sen, Ahksaya

Abstract

This paper analyses two challenges in the reform of urban transport pricing. First the construction of an optimal package of urban transport pricing instruments assuming one benevolent welfare maximizer. It is found that parking and tolling are the most important elements of the optimal package and that these policy instruments are sub-additive in their benefits. The second problem is the use of pricing instruments by different government levels: the urban government controls parking fees and the regional government controls a cordon toll. It is found that the overall efficiency losses in the Nash and Stackelberg equilibria are limited.

Suggested Citation

  • Proost, Stef & Sen, Ahksaya, 2006. "Urban transport pricing reform with two levels of government: A case study of Brussels," Transport Policy, Elsevier, vol. 13(2), pages 127-139, March.
  • Handle: RePEc:eee:trapol:v:13:y:2006:i:2:p:127-139
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    References listed on IDEAS

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    1. Proost, S. & Van Dender, K. & Courcelle, C. & De Borger, B. & Peirson, J. & Sharp, D. & Vickerman, R. & Gibbons, E. & O'Mahony, M. & Heaney, Q. & Van den Bergh, J. & Verhoef, E., 2002. "How large is the gap between present and efficient transport prices in Europe?," Transport Policy, Elsevier, vol. 9(1), pages 41-57, January.
    2. De Borger, B. & Proost, S. & Van Dender, K., 2005. "Congestion and tax competition in a parallel network," European Economic Review, Elsevier, vol. 49(8), pages 2013-2040, November.
    3. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
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    6. Edward Calthrop & Stef Proost, 1998. "Road Transport Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 335-348, April.
    7. Bev Dahlby, 1996. "Fiscal externalities and the design of intergovernmental grants," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 397-412, July.
    8. McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September.
    9. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(2), pages 269-304, June.
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    11. Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
    12. Mayeres, Inge & Proost, Stef, 1997. " Optimal Tax and Public Investment Rules for Congestion Type of Externalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(2), pages 261-279, June.
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    Cited by:

    1. Bekken, Jon-Terje & Norheim, Bård, 2007. "Chapter 7 Use of toll revenues and investment in Oslo," Research in Transportation Economics, Elsevier, vol. 19(1), pages 143-160, January.
    2. Vickerman, Roger, 2008. "Provision of public transport under conflicting regulatory regimes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1176-1182, November.
    3. Fung, Chau Man & Proost, Stef, 2017. "Can we decentralize transport taxes and infrastructure supply?," Economics of Transportation, Elsevier, vol. 9(C), pages 1-19.
    4. Sen, Akshaya Kumar & Tiwari, Geetam & Upadhyay, Vrajaindra, 2013. "Strategies of state and local government in management of urban transport problems – A case of Delhi," Research in Transportation Economics, Elsevier, vol. 38(1), pages 11-21.
    5. Ubbels, Barry & Verhoef, Erik T., 2008. "Governmental competition in road charging and capacity choice," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 174-190, March.
    6. Palma, André de & Lindsey, Robin & Proost, Stef, 2006. "Research challenges in modelling urban road pricing: An overview," Transport Policy, Elsevier, vol. 13(2), pages 97-105, March.
    7. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    8. Laird, James & Nash, Chris & Shepherd, Simon, 2007. "Chapter 8 Cordon charges and the use of revenue: A case study of Edinburgh," Research in Transportation Economics, Elsevier, vol. 19(1), pages 161-187, January.
    9. Fang Zong & Yanan He & Yixin Yuan, 2015. "Dependence of Parking Pricing on Land Use and Time of Day," Sustainability, MDPI, Open Access Journal, vol. 7(7), pages 1-21, July.
    10. Watling, D.P. & Shepherd, S.P. & Koh, A., 2015. "Cordon toll competition in a network of two cities: Formulation and sensitivity to traveller route and demand responses," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 93-116.
    11. Rodrigo Garrido, 2008. "Road Pricing for Hazardous Materials Transportation in Urban Networks," Networks and Spatial Economics, Springer, vol. 8(2), pages 273-285, September.
    12. Inturri, Giuseppe & Ignaccolo, Matteo, 2011. "Modelling the impact of alternative pricing policies on an urban multimodal traffic corridor," Transport Policy, Elsevier, vol. 18(6), pages 777-785, November.
    13. Rotaris, Lucia & Danielis, Romeo & Marcucci, Edoardo & Massiani, Jérôme, 2010. "The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost-benefit analysis assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 359-375, June.

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