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Congestion Pricing: Long-Term Economic and Land-Use Effects

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  • Safirova, Elena A.

    (Resources for the Future)

  • Houde, Sébastien

    (Resources for the Future)

  • Lipman, D. Abram
  • Harrington, Winston

    (Resources for the Future)

  • Bagliano, Andrew D.

Abstract

We employ a spatially disaggregated general equilibrium model of a regional economy that incorporates decisions of residents, firms, and developers integrated with a spatially disaggregated strategic transportation planning (START) model that features mode, time period, and route choice to evaluate economic effects of congestion pricing. First, we evaluate the long-run effects of a road-pricing policy based on the integrated model of land use, strategic transport, and regional economy (LUSTRE) and compare them with the short-term effects obtained from the START model alone. We then look at distributional effects of the policy in question and point out differences and similarities in the short run versus the long run. Finally, we analyze the mechanisms at the source of the economic and land-use effects induced by the road-pricing policy.

Suggested Citation

  • Safirova, Elena A. & Houde, Sébastien & Lipman, D. Abram & Harrington, Winston & Bagliano, Andrew D., 2006. "Congestion Pricing: Long-Term Economic and Land-Use Effects," RFF Working Paper Series dp-06-37, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-06-37
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    References listed on IDEAS

    as
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    14. Safirova, Elena & Gillingham, Kenneth & Parry, Ian & Nelson, Peter & Harrington, Winston & Mason, David, 2004. "8. Welfare And Distributional Effects Of Road Pricing Schemes For Metropolitan Washington Dc," Research in Transportation Economics, Elsevier, vol. 9(1), pages 179-206, January.
    15. Nelson, Peter & Baglino, Andrew & Harrington, Winston & Safirova, Elena & Lipman, Abram, 2007. "Transit in Washington, DC: Current benefits and optimal level of provision," Journal of Urban Economics, Elsevier, vol. 62(2), pages 231-251, September.
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    Cited by:

    1. Safirova, Elena & Gillingham, Kenneth & Houde, Sébastien, 2007. "Measuring marginal congestion costs of urban transportation: Do networks matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 734-749, October.
    2. Catherine Althaus & Lindsay M. Tedds & Allen McAvoy, 2011. "The Feasibility of Implementing a Congestion Charge on the Halifax Peninsula: Filling the "Missing Link" of Implementation," Canadian Public Policy, University of Toronto Press, vol. 37(4), pages 541-561, December.
    3. David Levinson, 2009. "Equity Effects of Road Pricing: A Review," Transport Reviews, Taylor & Francis Journals, vol. 30(1), pages 33-57, July.
    4. Magliocca, Nicholas & McConnell, Virginia & Walls, Margaret & Safirova, Elena, 2012. "Zoning on the urban fringe: Results from a new approach to modeling land and housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 198-210.
    5. Safirova, Elena A. & Houde, Sébastien & Coleman, Conrad T. & Harrington, Winston & Lipman, D. Abram, 2006. "Long-Term Consequences of Congestion Pricing: A Small Cordon in the Hand Is Worth Two in the Bush," RFF Working Paper Series dp-06-42, Resources for the Future.
    6. Magliocca, Nicholas & McConnell, Virginia & Walls, Margaret, 2015. "Exploring sprawl: Results from an economic agent-based model of land and housing markets," Ecological Economics, Elsevier, vol. 113(C), pages 114-125.
    7. André de Palma & Jean-Luc Prigent, 2007. "Hedging global environment risks: An option based portfolio insurance," THEMA Working Papers 2007-09, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    8. Houde, Sébastien & Safirova, Elena A. & Harrington, Winston, 2007. "Washington START Transportation Model," RFF Working Paper Series dp-07-43, Resources for the Future.
    9. Safirova, Elena A. & Houde, Sébastien & Harrington, Winston, 2007. "Spatial Development and Energy Consumption," RFF Working Paper Series dp-07-51, Resources for the Future.
    10. Mahyar Amirgholy & Hojjat Rezaeestakhruie & Hossain Poorzahedy, 2015. "Multi-objective cordon price design to control long run adverse traffic effects in large urban areas," Netnomics, Springer, vol. 16(1), pages 1-52, August.
    11. Safirova, Elena A. & Houde, Sébastien & Harrington, Winston, 2008. "Marginal Social Cost Pricing on a Transportation Network: Comparison of Second-Best Policies," RFF Working Paper Series dp-07-52, Resources for the Future.

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    More about this item

    Keywords

    traffic congestion; welfare analysis; CGE modeling; cordon tolls; distributional effects;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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