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The dynamics of urban traffic congestion and the price of parking

  • Mogens Fosgerau

    ()

    (Technical University of Denmark [Lyngby ])

  • André De Palma

    ()

    (ENS Cachan - École normale supérieure - Cachan)

We consider commuting in a congested urban area. While an efficient time-varying toll may eliminate queuing, a toll may not be politically feasible. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is charged at zero rate when there is queuing and eliminates queuing when the rate is non-zero. Within certain limits, inability to charge some drivers for parking does not reduce the potential welfare gain. Drivers who cannot be charged travel when there is queuing. In some cases, interaction between morning and evening commutes can be exploited to remove queuing completely.

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Paper provided by HAL in its series Working Papers with number hal-00742104.

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Date of creation: 19 Sep 2012
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Handle: RePEc:hal:wpaper:hal-00742104
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00742104
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  26. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
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