Optimal urban transport pricing with congestion and economies of density
The paper analyses the impact of economies of density on the characteristics of an urban transport system under optimal pricing conditions. Optimal pricing rules are derived for a transport system where bus and car modes are available for peak and offpeak trips. Both modes contribute to congestion. Each demand level for bus trips requires a minimal supply of bus-kilometres. Optimal bus supply exceeds this minimum only when waiting time reductions due to increased service frequency, outweigh congestion costs and bus supply costs (measured at the marginal cost of public funds). An empirical analysis for Brussels and London shows that taking account of economies of density modestly increases the welfare gain from optimising transport prices. Optimal public transport prices are lower when economies of density are taken into account, while optimal car prices are not strongly affected. In case car prices are fixed at the reference level, very low or zero public transport prices produce small welfare gains in some cases.
|Date of creation:||Sep 2001|
|Contact details of provider:|| Postal: Naamsestraat 69, 3000 Leuven|
Phone: +32-(0)16-32 67 25
Fax: +32-(0)16-32 67 96
Web page: http://feb.kuleuven.be/Economics
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ete:etewps:ete0119. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.