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Road pricing and public transport pricing reform in Paris: complements or substitutes?

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Listed:
  • Moez KILANI
  • Stefan PROOST
  • Saskia VAN DER LOO

Abstract

This paper explores reforms of pricing of private and public transport in Paris. Paris has used a policy of very low public transport prices and no road pricing. The Paris transport network is represented as a stylized concentric city with the choice between car, rapid rail, metro and busses as well as two income classes and different transport motives. The model is used to test what are the efficiency gains of introducing road pricing and of increasing public transit prices in the peak. Are both reforms re-enforcing each other or are they largely substitutes? We find that a zonal pricing scheme for the center of Paris combined with higher public transport fares in the peak perform best. The benefits of an overall capacity extension of public transport supply are much lower than the benefits of pricing reforms and could very well not pass the cost benefit test.

Suggested Citation

  • Moez KILANI & Stefan PROOST & Saskia VAN DER LOO, 2013. "Road pricing and public transport pricing reform in Paris: complements or substitutes?," Working Papers Department of Economics ces13.18, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces13.18
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    References listed on IDEAS

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    Cited by:

    1. Maria Börjesson & Chau Man Fung & Stef Proost, 2015. "Should buses still be subsidized in Stockholm?," Working Papers Department of Economics 518627, KU Leuven, Faculty of Economics and Business, Department of Economics.
    2. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2017. "Optimal prices and frequencies for buses in Stockholm," Economics of Transportation, Elsevier, vol. 9(C), pages 20-36.
    3. De Borger, Bruno & Proost, Stef, 2015. "The political economy of public transport pricing and supply decisions," Economics of Transportation, Elsevier, vol. 4(1), pages 95-109.
    4. Bruno De Borger & Stef Proost, 2015. " Tax and regulatory policies for European Transport – getting there, but in the slow lane," Working Papers Department of Economics 497597, KU Leuven, Faculty of Economics and Business, Department of Economics.
    5. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2017. "Cycling tolls and optimal number of bus stops: the importance of congestion and crowding," Working papers in Transport Economics 2017:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    6. Haywood, Luke & Koning, Martin, 2015. "The distribution of crowding costs in public transport: New evidence from Paris," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 182-201.

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