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Cordon pricing in the monocentric city: theory and application to Paris region

Author

Listed:
  • André DE PALMA

    (Ecole Normale Supérieure de Cachan)

  • Moez KILANI

    (Université Charles de Gaulle - Lille, EQUIPPE)

  • Michel DE LARA

    (Université de Paris-Est, CERMICS)

  • Serge PIPERNO

    (Université de Paris-Est, CERMICS)

Abstract

We propose a method to compute an equilibrium solution for the monocentric city model with traffic congestion, and to quantify the impact of cordon tolls on social surplus. The focus of this paper is on the comparison of road pricing of one and two cordons, with the no toll and first-best situations as benchmarks. We find that a one-cordon toll yields a social efficiency of 63% with respect to first-best, and that an optimal two-cordon toll increases the efficiency to 73%. Both policies have a positive impact on CO2 emissions because they reduce the average length of trips and reduce the road size.

Suggested Citation

  • André DE PALMA & Moez KILANI & Michel DE LARA & Serge PIPERNO, 2011. "Cordon pricing in the monocentric city: theory and application to Paris region," Discussion Papers (REL - Recherches Economiques de Louvain) 2011027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:2011027
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    References listed on IDEAS

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    Cited by:

    1. Kilani, Moez & Proost, Stef & van der Loo, Saskia, 2014. "Road pricing and public transport pricing reform in Paris: Complements or substitutes?," Economics of Transportation, Elsevier, vol. 3(2), pages 175-187.
    2. Jyh-Fa Tsai & Shao-Yu Lu, 2018. "Reducing traffic externalities by multiple-cordon pricing," Transportation, Springer, vol. 45(2), pages 597-622, March.
    3. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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    More about this item

    Keywords

    monocentric model; cordon toll; acceptability of road pricing;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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