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Next Generations of Road Pricing: Social Welfare Enhancing

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  • Omid M. Rouhani

    (Post-doctoral Research Associate, School of Civil and Environmental Engineering, Cornell University, 462 Hollister Hall, Ithaca, NY 14853, USA)

Abstract

This paper offers a broad overview of road pricing from a social welfare perspective. I first examine two common objectives of road pricing: congestion management and profit making. My goal is to provide a guideline explaining how to promote a social-welfare-enhancing road pricing scheme. To this end, we should: (i) consider and improve public transportation systems by providing more environment-friendly transport options; (ii) include tolling profits in our welfare analysis (as opposed to what economists suggest) since residents are the real owners of roads not users, and since some users are from outside the region and so might not be excluded from analysis; and (iii) search for a holistic approach that takes into account system-wide impacts, disutility to users who change their travel behavior ( i.e. , switch to public transportation, shift their travel, or do not travel at all), and the impacts on land use, employment, and residents.

Suggested Citation

  • Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:3:p:265-:d:65622
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    References listed on IDEAS

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    Cited by:

    1. Mohamad Shatanawi & Fatma Abdelkhalek & Ferenc Mészáros, 2020. "Urban Congestion Charging Acceptability: An International Comparative Study," Sustainability, MDPI, vol. 12(12), pages 1-15, June.
    2. Mohamad Shatanawi & Mohammed Hajouj & Belal Edries & Ferenc Mészáros, 2022. "The Interrelationship between Road Pricing Acceptability and Self-Driving Vehicle Adoption: Insights from Four Countries," Sustainability, MDPI, vol. 14(19), pages 1-32, October.
    3. M Rouhani, Omid, 2016. "Social welfare analysis of HOV to HOT conversion," MPRA Paper 75816, University Library of Munich, Germany.
    4. Schubert, Daniel & Sys, Christa & Vanelslander, Thierry & Roumboutsos, Athena, 2022. "No-queue road pricing: A comprehensive policy instrument for Europe?," Utilities Policy, Elsevier, vol. 78(C).
    5. Rouhani, Omid, 2022. "Are transportation solutions doomed to fail climate-change actions? A book review," MPRA Paper 115675, University Library of Munich, Germany.
    6. Rouhani, Omid, 2017. "Manage energy/environmental footprints of travel: A proposed solution/methodology," MPRA Paper 83344, University Library of Munich, Germany.
    7. Milenković, Marina & Glavić, Draženko & Maričić, Milica, 2019. "Determining factors affecting congestion pricing acceptability," Transport Policy, Elsevier, vol. 82(C), pages 58-74.
    8. Rouhani, Omid, 2023. "Public Policy: A science and/or a Field?," MPRA Paper 118121, University Library of Munich, Germany.
    9. Rouhani, M. Rouhani, 2018. "Financing Sustainability and Resiliency of Transportation Infrastructure in an Era of Fiscal Constraint," MPRA Paper 88504, University Library of Munich, Germany.
    10. M. Rouhani, Omid, 2019. "Transportation Project Evaluation Methods/Approaches," MPRA Paper 91451, University Library of Munich, Germany.
    11. Rouhani, Omid, 2021. "Transportation Project Evaluation Methods/Approaches- Version 2," MPRA Paper 105729, University Library of Munich, Germany.

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