Credible commitment and congestion pricing
Transportation analysts frequently assert that congestion pricing’s political obstacles can be overcome through astute use of the toll revenue pricing generates. Such “revenue recycling,” however, implies that the collectors of the toll revenue will not be its final recipients, meaning that any revenue recipient must believe that the revenue collector will honor promises to deliver the money. This raises the potential for credible commitment problems. Promises to spend revenue can solve one political problem, because revenue is an easy benefit to understand, but create another one, because revenue is easy to divert. Revenue recycling may therefore not be a promising way to build political support for congestion pricing. We highlight the role commitment problems have played efforts to implement congestion pricing, using examples from around the world and then focusing on California. Because congestion reduction is a more certain benefit than any particular use of the toll revenue, demonstration projects, rather than revenue promises, will be key to pricing’s political success. Copyright Springer Science+Business Media, LLC. 2013
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.:
- Winslott-Hiselius, Lena & Brundell-Freij, Karin & Vagland, Asa & Byström, Camilla, 2009. "The development of public attitudes towards the Stockholm congestion trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 269-282, March.
- Bjorn Harsman & John Quigley, 2011.
"Political and Public Acceptability of Congestion Pricing: Ideology and Self Interest,"
ERSA conference papers
ersa10p1477, European Regional Science Association.
- Harsman, Bjorn & Quigley, John M., 2010. "Political and Public Acceptability of Congestion Pricing: Ideology and Self Interest," Berkeley Program on Housing and Urban Policy, Working Paper Series qt77b5243v, Berkeley Program on Housing and Urban Policy.
- Harsman, Bjorn & Quigley, John M., 2010. "Political and Public Acceptability of Congestion Pricing: Ideology and Self Interest," University of California Transportation Center, Working Papers qt14n0h1nv, University of California Transportation Center.
- Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-86, April.
- Small, Kenneth A., 2001.
"Using the Revenues from Congestion Pricing,"
University of California Transportation Center, Working Papers
qt7170x9b0, University of California Transportation Center.
- Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
- Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
- King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
- King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," University of California Transportation Center, Working Papers qt9js9z8gz, University of California Transportation Center.
- Eliasson, Jonas & Jonsson, Lina, 2011. "The unexpected "yes": Explanatory factors behind the positive attitudes to congestion charges in Stockholm," Transport Policy, Elsevier, vol. 18(4), pages 636-647, August.
- McQuaid, Ronald & Grieco, Margaret, 2005. "Edinburgh and the politics of congestion charging: Negotiating road user charging with affected publics," Transport Policy, Elsevier, vol. 12(5), pages 475-476, September.
- Schaller, Bruce, 2010. "New York City's congestion pricing experience and implications for road pricing acceptance in the United States," Transport Policy, Elsevier, vol. 17(4), pages 266-273, August.
- Björn Hårsman & John M. Quigley, 2010. "Political and public acceptability of congestion pricing: Ideology and self-interest," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(4), pages 854-874.
- Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
- Cowen, Tyler & Glazer, Amihai & Zajc, Katarina, 2000.
"Credibility may require discretion, not rules,"
Journal of Public Economics,
Elsevier, vol. 76(2), pages 295-306, May.
When requesting a correction, please mention this item's handle: RePEc:kap:transp:v:40:y:2013:i:2:p:229-249. 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: (Sonal Shukla)or (Rebekah McClure)
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.