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Congested Roads and General Equilibrium Pigouvian Tax Solutions

In: Recent Advances in Spatial Equilibrium Modelling

Author

Listed:
  • Inge Mayeres

    (Katholieke Universiteit Leuven)

  • Stef Proost

    (Katholieke Universiteit Leuven)

Abstract

In this paper we use Pigouvian taxation theory to solve network congestion problems in a general equilibrium framework. In network congestion problems, the cost of using the network increases as a function of the total flow on the network. The present problems on our roads and airports are the best illustrations of such disequilibria between the demand for transportation services and the available capacity. Congestion problems also occur in other public facilities like telephone networks, swimming pools, etc. where the quality of services decreases when the total level of demand is in disproportion to the available capacity. We will however concentrate on the road transport example.

Suggested Citation

  • Inge Mayeres & Stef Proost, 1996. "Congested Roads and General Equilibrium Pigouvian Tax Solutions," Advances in Spatial Science, in: Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), Recent Advances in Spatial Equilibrium Modelling, chapter 11, pages 221-242, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-80080-1_11
    DOI: 10.1007/978-3-642-80080-1_11
    as

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