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Optimal Environmental Road Pricing and Integrated Daily Commuting Patterns


  • Coria, Jessica

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Zhang, Xiao-Bing

    (School of Economics, Renmin University of China.)


Road pricing can improve air quality by reducing and spreading traffic flows. Nevertheless, air quality does not depend only on traffic flows, but also on pollution dispersion. In this paper we investigate the effects of the temporal variation in pollution dispersion on optimal road pricing, and show that time-varying road pricing is needed to make drivers internalize the social costs of both time-varying congestion and time- varying pollution. To this end, we develop an ecological economics model that takes into account the effects of road pricing on integrated daily commuting patterns. We characterize the optimal road pricing when pollution dispersion varies over the day and analyze its effects on traffic flows, arrival times, and the number of commuters by car.

Suggested Citation

  • Coria, Jessica & Zhang, Xiao-Bing, 2016. "Optimal Environmental Road Pricing and Integrated Daily Commuting Patterns," Working Papers in Economics 682, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0682

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    References listed on IDEAS

    1. Coria, Jessica & Bonilla, Jorge & Grundström, Maria & Pleijel, Håkan, 2015. "Air pollution dynamics and the need for temporally differentiated road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 178-195.
    2. Bonilla,Jorge A., 2016. "The more stringent, the better ? rationing car use in Bogota with moderate and drastic restrictions," Policy Research Working Paper Series 7846, The World Bank.
    3. Gonzales, Eric J. & Daganzo, Carlos F., 2013. "The evening commute with cars and transit: Duality results and user equilibrium for the combined morning and evening peaks," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 286-299.
    4. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    5. V. F. Hurdle, 1981. "Equilibrium Flows on Urban Freeways," Transportation Science, INFORMS, vol. 15(3), pages 255-293, August.
    6. Zhang, Xiaoning & Huang, Hai-Jun & Zhang, H.M., 2008. "Integrated daily commuting patterns and optimal road tolls and parking fees in a linear city," Transportation Research Part B: Methodological, Elsevier, vol. 42(1), pages 38-56, January.
    7. Coria, Jessica, 2011. "Environmental crises' regulations, tradable permits and the adoption of new technologies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 455-476, September.
    8. 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.
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    More about this item


    Air pollution; Road transportation; Road pricing; Pollution dispersion;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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