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

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

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.

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Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt8kk909p1.

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Date of creation: 01 Jan 1998
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Handle: RePEc:cdl:uctcwp:qt8kk909p1
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  1. 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.
  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. Hau, Timothy D., 1992. "Congestion charging mechanisms for roads : an evaluation of current practice," Policy Research Working Paper Series 1071, The World Bank.
  4. 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.
  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.
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