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Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France

Author

Listed:
  • André De Palma

    (Department of Economics, Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, ENS Cachan - École normale supérieure - Cachan)

  • Moez Kilani

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École des Ponts ParisTech)

  • Michel De Lara

    () (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École des Ponts ParisTech)

  • Serge Piperno

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École des Ponts ParisTech)

Abstract

We propose a method to compute an equilibrium solution for the monocentric city model with traffic congestion, and to quantify the im- pact 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 pos- itive 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 model: Theory and application to Ile-de- France," Post-Print hal-00348437, HAL.
  • Handle: RePEc:hal:journl:hal-00348437
    DOI: 10.3917/rel.772.0105
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00348437
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    File URL: https://hal.archives-ouvertes.fr/hal-00348437/document
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    References listed on IDEAS

    as
    1. Jonathan Leape, 2006. "The London Congestion Charge," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 157-176, Fall.
    2. Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR;CES;MSH, vol. 21(46), pages 263-310, April.
    3. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    4. Robson, Arthur J., 1976. "Cost-benefit analysis and the use of urban land for transportation," Journal of Urban Economics, Elsevier, vol. 3(2), pages 180-191, April.
    5. Ho, H.W. & Wong, S.C. & Yang, Hai & Loo, Becky P.Y., 2005. "Cordon-based congestion pricing in a continuum traffic equilibrium system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 813-834.
    6. Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November.
    7. de Palma, André & Lindsey, Robin, 2006. "Modelling and evaluation of road pricing in Paris," Transport Policy, Elsevier, vol. 13(2), pages 115-126, March.
    8. Sumalee, Agachai & May, Tony & Shepherd, Simon, 2005. "Comparison of judgmental and optimal road pricing cordons," Transport Policy, Elsevier, vol. 12(5), pages 384-390, September.
    9. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
    10. de Palma, André & Kilani, Moez & Lindsey, Robin, 2005. "Congestion pricing on a road network: A study using the dynamic equilibrium simulator METROPOLIS," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 588-611.
    11. De Lara, Michel & de Palma, André & Kilani, Moez & Piperno, Serge, 2013. "Congestion pricing and long term urban form: Application to Paris region," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 282-295.
    12. Zhang, Xiaoning & Yang, Hai, 2004. "The optimal cordon-based network congestion pricing problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 517-537, July.
    13. Michel De Lara & André De Palma & Moez Kilani & Serge Piperno, 2008. "Congestion pricing and long term urban form: Application to Ile-de-France," Working Papers hal-00348439, HAL.
    14. Kanemoto, Yoshitsugu, 1977. "Cost-benefit analysis and the second best land use for transportation," Journal of Urban Economics, Elsevier, vol. 4(4), pages 483-503, October.
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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. repec:kap:transp:v:45:y:2018:i:2:d:10.1007_s11116-016-9742-2 is not listed on IDEAS

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