 Optimal urban transport pricing in the presence of congestion, economies of density and costly public fundsStef Proost and Kurt Van Dender Transportation Research Part A: Policy and Practice, 2008, vol. 42, issue 9, 1220-1230 Abstract: Using a numerical model of the urban transportation sector, calibrated to data for Brussels and for London, we calculate the optimal transport price structure and its effect on the transport equilibrium and on welfare. Removing existing subsidies to transit and to parking, internalising transport externalities (mainly congestion) and optimising the frequency of transit service increases welfare by approximately 2%. Optimal prices are higher than current prices in most transport markets, so that optimal transport demand is below current demand. There is a strong shift to public transport in the peak period. Finally, calculations for Brussels of optimal public transport prices for unchanged reference car taxes indicate that only limited welfare gains can be obtained by charging near-zero transit fares in peak hours. Keywords: Transport; Congestion; Transit (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:42:y:2008:i:9:p:1220-1230 Ordering information: This journal article can be ordered from Access Statistics for this article Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose More articles in Transportation Research Part A: Policy and Practice from Elsevier |
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