The Welfare Effects of Cordon Pricing and Area Pricing Simulation with a Multi-regional General Equilibrium Model
This paper analyses the welfare effects of cordon pricing and area pricing through numerical simulations with a multi-regional general equilibrium model. The toll policies achieve approximately 60 per cent of the efficiency gains from the Pigouvian congestion tax. Cordon pricing is better if long-distance commuting is prevalent, while area pricing is better if a city has a large central urban area. With the introduction of cordon pricing or area pricing, a toll district becomes more attractive as a residential place but less attractive as a workplace. The toll policies promote short-distance commuting but discourage the use of public transport in toll-free commutes. © 2011 LSE and the University of Bath
Volume (Year): 45 (2011)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.bath.ac.uk/e-journals/jtep |
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:45:y:2011:i:3:p:481-504. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.