The structure of the labour market, telecommuting, and optimal peak period congestion tolls: A numerical optimisation model
This paper develops a numerical optimisation model to study optimal labour and peak-period congestion taxes under different assumptions on the structure of the labour market. We consider both a competitive labour market and various wage bargaining models, in which wages are determined via negotiations between firms and labour unions. All models include commuting and non-commuting transport, and they allow for telecommuting. The models are numerically implemented using Belgian data. We find that wage bargaining models may imply higher or lower congestion tolls on peak period car traffic compared to competitive labour markets, depending on the response of unions to transport issues and the composition of the traffic flow. If unions care about the effect of congestion and congestion tolls on their members’ well-being, we find the optimal congestion toll for the wage bargaining model to be 15%-20% lower than under competitive labour market conditions. However, if unions do not care about their members’ transport problems when negotiating about wages and employment, then the optimal congestion tax is up to 50% higher under bargaining than under competition. We further find that the optimal tax structure results in substantially more telecommuting for all labour market structures considered. Finally, improving the efficiency of telecommuting results in a considerable reduction in optimal congestion tolls.
|Date of creation:||Jun 2010|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerpen|
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
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.:
- de Graaff, Thomas & Rietveld, Piet, 2007. "Substitution between working at home and out-of-home: The role of ICT and commuting costs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(2), pages 142-160, February.
- Inge Mayeres & Stef Proost, 1998.
"Marginal Tax Reform, Externalities and Income Distribution,"
Working Papers Department of Economics
ces9832, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Mayeres, Inge & Proost, Stef, 2001. "Marginal tax reform, externalities and income distribution," Journal of Public Economics, Elsevier, vol. 79(2), pages 343-363, February.
- Borck, Rainald & Wrede, Matthias, 2005.
"Political economy of commuting subsidies,"
Journal of Urban Economics,
Elsevier, vol. 57(3), pages 478-499, May.
- Rainald Borck & Matthias Wrede, 2004. "Political Economy of Commuting Subsidies," Discussion Papers of DIW Berlin 445, DIW Berlin, German Institute for Economic Research.
- Rainald Borck & Matthias Wrede, 2004. "Political Economy of Commuting Subsidies," CESifo Working Paper Series 1339, CESifo Group Munich.
- Schneider, Kerstin, 1997. " Involuntary Unemployment and Environmental Policy: The Double Dividend Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 45-49, March.
- Parry, Ian W.H. & Bento, Antonio Miguel R., 1999.
"Revenue recycling and the welfare effects of road pricing,"
Policy Research Working Paper Series
2253, The World Bank.
- Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
- Parry, Ian & Bento, Antonio, 1999. "Revenue Recycling and the Welfare Effects of Road Pricing," Discussion Papers dp-99-45, Resources For the Future.
- Páez, Antonio & Whalen, Kate, 2010. "Enjoyment of commute: A comparison of different transportation modes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(7), pages 537-549, August.
- Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos, 2010.
"Labour Supply and Commuting,"
IZA Discussion Papers
4798, Institute for the Study of Labor (IZA).
- Eva Gutiérrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting," SOEPpapers on Multidisciplinary Panel Data Research 222, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Kurt Van Dender, 2003. "Transport Taxes with Multiple Trip Purposes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 295-310, 06.
- DE BORGER, Bruno, "undated". "Commuting, congestion tolls and noncompetitive labour markets: Optimal congestion pricing in a wage bargaining model," Working Papers 2006014, University of Antwerp, Faculty of Applied Economics.
- Safirova, Elena, 2002. "Telecommuting, traffic congestion, and agglomeration: a general equilibrium model," Journal of Urban Economics, Elsevier, vol. 52(1), pages 26-52, July.
- Jon Strand, 1999.
"Efficient Environmental Taxation Under Worker-Firm Bargaining,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 13(2), pages 125-141, March.
- Strand, J., 1995. "Efficient Environmental Taxation Under Worker-Firm Bargaining," Memorandum 19/1995, Oslo University, Department of Economics.
- repec:dgr:uvatin:20090008 is not listed on IDEAS
- Ory, David T. & Mokhtarian, Patricia L., 2005. "When is getting there half the fun? Modeling the liking for travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 97-123.
- Anthony J. Venables, 2004.
"Evaluating Urban Transport Improvements: Cost Benefit Analysis in the Presence of Agglomeration and Income Taxation,"
CEP Discussion Papers
dp0651, Centre for Economic Performance, LSE.
- Anthony J. Venables, 2007. "Evaluating Urban Transport Improvements: Cost-Benefit Analysis in the Presence of Agglomeration and Income Taxation," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 173-188, May.
- Tony Venables, 2004. "Evaluating urban transport improvements: cost benefit analysis in the presence of agglomeration and income taxation," LSE Research Online Documents on Economics 2205, London School of Economics and Political Science, LSE Library.
- De Borger, Bruno & Van Dender, Kurt, 2003.
"Transport tax reform, commuting, and endogenous values of time,"
Journal of Urban Economics,
Elsevier, vol. 53(3), pages 510-530, May.
- DE BORGER, Bruno & VAN DENDER, Kurt, "undated". "Transport tax reform, commuting and endogenous values of time," Working Papers 2003004, University of Antwerp, Faculty of Applied Economics.
- Bruno De Borger & Kurt Van Dender, 2002. "Transport tax reform, commuting and endogenous values of time," Energy, Transport and Environment Working Papers Series ete0207, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
- Keeler, Theodore E & Small, Kenneth A, 1977. "Optimal Peak-Load Pricing, Investment, and Service Levels on Urban Expressways," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 1-25, February.
- Gerard de Jong & Hugh Gunn, 2001. "Recent Evidence on Car Cost and Time Elasticities of Travel Demand in Europe," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 137-160, May.
- Bayindir-Upmann, Thorsten & Raith, Matthias G., 2003. "Should high-tax countries pursue revenue-neutral ecological tax reforms?," European Economic Review, Elsevier, vol. 47(1), pages 41-60, February.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Creedy, John & McDonald, Ian M, 1991. "Models of Trade Union Behaviour: A Synthesis," The Economic Record, The Economic Society of Australia, vol. 67(199), pages 346-359, December.
- Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2010013. 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: (Joeri Nys)
If references are entirely missing, you can add them using this form.