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The impact of pecuniary costs on commuting flows

Author

Listed:
  • David McArthur

    ()

  • Gisle Kleppe
  • Inge Thorsen

    ()

  • Jan Uböe

Abstract

In many cases fjords cause disconnections in the road network, calling for the service of ferries. The construction of bridges or subsea tunnels may, however, substitute the ferries, often financed by toll charges. In this paper we use data on commuting flows from a Norwegian region with a high number of ferry connections and/or tunnels and bridges. Based on a doubly-constrained gravity-based model specification we focus on how commuting flows respond to varying toll charges and ferry prices. Estimation results are used to predict how the generation and distribution of commuting flows is affected when ferry connections are substituted by bridges and tunnels. We also estimate the willingness to pay for a new road connection, and predict how commuting flows respond to alternative pricing policies for the new road link.

Suggested Citation

  • David McArthur & Gisle Kleppe & Inge Thorsen & Jan Uböe, 2011. "The impact of pecuniary costs on commuting flows," ERSA conference papers ersa10p874, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p874
    as

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper874.pdf
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    References listed on IDEAS

    as
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    3. Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    4. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
    5. A S Fotheringham, 1983. "Some Theoretical Aspects of Destination Choice and Their Relevance to Production-Constrained Gravity Models," Environment and Planning A, , vol. 15(8), pages 1121-1132, August.
    6. A S Fotheringham, 1983. "A new set of spatial-interaction models: the theory of competing destinations," Environment and Planning A, Pion Ltd, London, vol. 15(1), pages 15-36, January.
    7. A S Fotheringham, 1983. "Some theoretical aspects of destination choice and their relevance to production-constrained gravity models," Environment and Planning A, Pion Ltd, London, vol. 15(8), pages 1121-1132, August.
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