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Road Pricing for Congestion Management: The Transition from Theory to Policy

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  • Small, Kenneth A.
  • Gomez-Ilbanez, Jose A.

Abstract

Traffic congestion is a classic externality, especially pervasive in urban areas. The theoretical and empirical relationships governing it have been thoroughly studied. As a result, most urban economists and a growing number of other policy analysts agree that the best policy to deal with it would be some form of congestion pricing. Such a policy involves charging a substantial fee for operating a motor vehicle at times and places where there is insufficient road capacity to easily accommodate demand. The intention is to alter people’s travel behavior enough to reduce congestion.

Suggested Citation

  • Small, Kenneth A. & Gomez-Ilbanez, Jose A., 1998. "Road Pricing for Congestion Management: The Transition from Theory to Policy," University of California Transportation Center, Working Papers qt8kk909p1, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt8kk909p1
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    References listed on IDEAS

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    1. William A. V. Clark & Marianne Kuijpers-Linde, 1994. "Commuting in Restructuring Urban Regions," Urban Studies, Urban Studies Journal Limited, vol. 31(3), pages 465-483, April.
    2. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
    3. 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.
    4. Kraus, Marvin, 1989. "The welfare gains from pricing road congestion using automatic vehicle identification and on-vehicle meters," Journal of Urban Economics, Elsevier, vol. 25(3), pages 261-281, May.
    5. McCarthy Patrick & Tay Richard, 1993. "Economic Efficiency vs Traffic Restraint: A Note on Singapore's Area License Scheme," Journal of Urban Economics, Elsevier, vol. 34(1), pages 96-100, July.
    6. Hau, Timothy D., 1992. "Congestion charging mechanisms for roads : an evaluation of current practice," Policy Research Working Paper Series 1071, The World Bank.
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