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Congestion pricing and long term urban form: Application to Ile-de-France

  • Michel De Lara

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

  • André De Palma

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, ENS Cachan - Ecole Normale Supérieure de Cachan - École normale supérieure de Cachan - ENS Cachan)

  • Moez Kilani

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

  • Serge Piperno

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

We propose an efficient algorithm that solves the monocentric city model with traffic congestion, and use it to explore the impact of congestion pricing on urban forms and, hence, on transport volume, CO2 emissions and energy consumption. The application focuses on the region Ie-de-France. Four pricing policies are considered: no toll, where transport cost is equal to the vehicle operating cost, cordon toll where users pay the toll when they drive inside cordon region linear toll (optimal under the class of linear tolls) and optimal toll (or first-best toll). The linear toll is equivalent to an increase in the vehicle operating cost. It performs well with respect to the first-best solution but, since it applies identically to all trips, it is not likely to be relevant in practice. By comparison to the no-toll situation, optimal congestion pricing reduces the radius of the city and the average travel distance by 34% and 15%, respectively.

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Paper provided by HAL in its series Working Papers with number hal-00348439.

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Date of creation: Dec 2008
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Handle: RePEc:hal:wpaper:hal-00348439
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  1. Robert M. Solow, 1973. "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 602-618, Autumn.
  2. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
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  8. Erik Verhoef, 2004. "Second-best Congestion Pricing Schemes in the Monocentric City," ERSA conference papers ersa04p408, European Regional Science Association.
  9. Arnott, Richard J., 1979. "Unpriced transport congestion," Journal of Economic Theory, Elsevier, vol. 21(2), pages 294-316, October.
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  12. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
  13. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
  14. Daniel, Joseph I. & Bekka, Khalid, 2000. "The Environmental Impact of Highway Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 47(2), pages 180-215, March.
  15. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
  16. Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999. "Urban transportation," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999 Elsevier.
  17. de Palma, André & Lindsey, Robin, 2006. "Modelling and evaluation of road pricing in Paris," Transport Policy, Elsevier, vol. 13(2), pages 115-126, March.
  18. Boarnet Marlon G., 1994. "The Monocentric Model and Employment Location," Journal of Urban Economics, Elsevier, vol. 36(1), pages 79-97, July.
  19. Mills, Edwin S & Ferranti, David M, 1971. "Market Choices and Optimum City Size," American Economic Review, American Economic Association, vol. 61(2), pages 340-45, May.
  20. McMillen, Daniel P. & Jarmin, Ronald & Thorsnes, Paul, 1992. "Selection bias and land development in the monocentric city model," Journal of Urban Economics, Elsevier, vol. 31(3), pages 273-284, May.
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