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Voting on traffic congestion policy with two levels of government

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  • Russo, Antonio

Abstract

I study how the political decision process affects urban traffic congestion policy. First, I look at the case of a single government deciding, through majority voting, on a monetary charge to be paid to drive to a city's Central Business District (CBD): if the majority of individuals prefers to drive more (resp. less) than the average, a voting equilibrium with lower (higher) charge emerges. Next, I consider the case of two government levels involved in traffic policy: parking charges in (resp. cordon tolls around) a city's CBD and capacity investments are chosen by a local (resp. regional) government, through a majority voting process. While tax exporting motives and the imperfect coordination among the two governments may lead to higher overall charges than in the case of a single government, strong preferences for driving across the population can still bring to an equilibiurm with suboptimal total charges.

Suggested Citation

  • Russo, Antonio, 2010. "Voting on traffic congestion policy with two levels of government," MPRA Paper 24776, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24776
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    File URL: https://mpra.ub.uni-muenchen.de/24776/1/MPRA_paper_24776.pdf
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    References listed on IDEAS

    as
    1. Arnott, Richard & Inci, Eren, 2006. "An integrated model of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 60(3), pages 418-442, November.
    2. Parry, I. W. H., 2002. "Comparing the efficiency of alternative policies for reducing traffic congestion," Journal of Public Economics, Elsevier, vol. 85(3), pages 333-362, September.
    3. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
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    More about this item

    Keywords

    traffic congestion policy; cordon tolls; parking; voting; fiscal competition;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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