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The Fundamental Law of Road Congestion: Evidence from US cities

  • Duranton, Gilles
  • Turner, Matthew A

We investigate the relationship between interstate highways and highway vehicle kilometers traveled (vkt) in US cities. We find that vkt increases proportionately to highways and identify three important sources for this extra vkt: an increase in driving by current residents; an increase in transportation intensive production activity; and an inflow of new residents. The provision of public transportation has no impact on vkt. We also estimate the aggregate city level demand for vkt and find it to be very elastic. We conclude that an increased provision of roads or public transit is unlikely to relieve congestion and that the current provision of roads exceeds the optimum given the absence of congestion pricing.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7462.

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Date of creation: Sep 2009
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Handle: RePEc:cpr:ceprdp:7462
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  8. Gilles Duranton & Matthew A. Turner, 2009. "The Fundamental Law of Road Congestion: Evidence from US cities," Working Papers tecipa-370, University of Toronto, Department of Economics.
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