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Carpooling and Congestion Pricing: HOV and HOT Lanes

Author

Listed:
  • Hideo Konishi

    () (Boston College)

  • Se-il Mun

    (Kyoto University)

Abstract

It is often argued in the US that HOV (high occupancy vehicle) lanes are wasteful and should be converted to HOT (high occupancy vehicles and toll lanes). In this paper, we construct a simple model of commuters using a highway with multiple lanes, in which commuters are heterogeneous in their carpool organization costs. We first look at the HOV lanes and investigate under what conditions introducing HOV lanes is socially beneficial. Then we examine whether converting HOV lanes to HOT lanes improves the efficiency of road use. It is shown that the result depends on functional form and parameter values. We also discuss the effect of alternative policies: simple congestion pricing without lane division; and congestion pricing with HOV lanes. The analysis using specific functional form is presented to explicitly obtain the conditions determining the rankings of HOV, HOT, and other policies based on aggregate social cost.

Suggested Citation

  • Hideo Konishi & Se-il Mun, 2009. "Carpooling and Congestion Pricing: HOV and HOT Lanes," Boston College Working Papers in Economics 719, Boston College Department of Economics.
  • Handle: RePEc:boc:bocoec:719
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    References listed on IDEAS

    as
    1. Small, Kenneth A. & Yan, Jia, 2001. "The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation," Journal of Urban Economics, Elsevier, vol. 49(2), pages 310-336, March.
    2. Safirova, Elena & Gillingham, Kenneth & Houde, Sébastien, 2007. "Measuring marginal congestion costs of urban transportation: Do networks matter?," Transportation Research Part A: Policy and Practice, Elsevier, pages 734-749.
    3. Small, Kenneth A., 1997. "Economics and urban transportation policy in the United States," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 671-691, November.
    4. Yang, Hai & Huang, Hai-Jun, 1999. "Carpooling and congestion pricing in a multilane highway with high-occupancy-vehicle lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(2), pages 139-155, February.
    5. Fielding, Gordon J. & Klein, Daniel B., 1993. "High Occupancy / Toll Lanes: Phasing in Congestion Pricing a Lane at a Time," University of California Transportation Center, Working Papers qt2fv1c5p3, University of California Transportation Center.
    6. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Differentiated Road Pricing, Express Lanes and Carpools: Exploiting Heterogeneous Preferences in Policy Design," Working Papers 050616, University of California-Irvine, Department of Economics, revised Mar 2006.
    7. Safirova, Elena & Gillingham, Kenneth & Parry, Ian & Nelson, Peter & Harrington, Winston & Mason, David, 2004. "8. Welfare And Distributional Effects Of Road Pricing Schemes For Metropolitan Washington Dc," Research in Transportation Economics, Elsevier, vol. 9(1), pages 179-206, January.
    8. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, pages 2177-2192.
    9. Dahlgren, Joy, 1998. "High occupancy vehicle lanes: Not always more effective than general purpose lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(2), pages 99-114, February.
    10. Reitman, David, 1991. "Endogenous Quality Differentiation in Congested Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 39(6), pages 621-647, December.
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    Cited by:

    1. Furuhata, Masabumi & Dessouky, Maged & Ordóñez, Fernando & Brunet, Marc-Etienne & Wang, Xiaoqing & Koenig, Sven, 2013. "Ridesharing: The state-of-the-art and future directions," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 28-46.
    2. Michael Janson & David Levinson, 2013. "HOT or Not: Driver Elasticity to Price on the MnPASS HOT Lanes," Working Papers 000111, University of Minnesota: Nexus Research Group.
    3. Su, Qing & Zhou, Liren, 2012. "Parking management, financial subsidies to alternatives to drive alone and commute mode choices in Seattle," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 88-97.
    4. Bento, Antonio M. & Hughes, Jonathan E. & Kaffine, Daniel, 2013. "Carpooling and driver responses to fuel price changes: Evidence from traffic flows in Los Angeles," Journal of Urban Economics, Elsevier, pages 41-56.

    More about this item

    Keywords

    HOV lanes; HOT lanes; congestion pricing; transportation economics;

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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