 Economic efficiency of second-best congestion pricing schemes in urban highway systemsLouie Nan Liu and John McDonald Transportation Research Part B: Methodological, 1999, vol. 33, issue 3, 157-188 Abstract: This paper examines urban highway congestion pricing in the instance in which it is not possible to levy a congestion toll on a major portion of the urban road system. This case is pertinent because of technical and/or political constraints. The paper uses economic theory of the second best and a simulation model to compare first-best, second-best and no-toll solutions for a model with two routes and two time periods (peak and pre-peak). The main findings from the simulation results are: (1) the second-best scheme is effective but less efficient than the first-best scheme in reallocating traffic volumes; (2) the second-best tolls are appreciably smaller than the first-best tolls; (3) the welfare gains from the second-best policy are much smaller than the welfare gains that are possible with a complete set of first-best tolls. It is also shown that the nature of the simulation results is not sensitive to reasonable cost and demand parameters. Date: 1999 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:33:y:1999:i:3:p:157-188 Ordering information: This journal article can be ordered from Access Statistics for this article Transportation Research Part B: Methodological is currently edited by Fred Mannering More articles in Transportation Research Part B: Methodological from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.