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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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    3. 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.
    4. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
    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. Small, Kenneth A., 2001. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt7170x9b0, University of California Transportation Center.
    7. 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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