Equity Effects of Road Pricing, A Review

David Levinson

No 201006, Working Papers from University of Minnesota: Nexus Research Group

Abstract: Are road pricing strategies regressive or progressive? This is a question that has been confronting researchers, practitioners, and policy-makers who seek to implement new mechanisms to raise funds for transportation while simultaneously managing demand. The theoretical literature is mixed, as is the empirical literature. In part this has to do with the various types of road pricing strategies that are being debated, different definitions of equity, and alternative assumptions about revenue recycling. Despite this seeming complexity, the literature is clear that equity issues are addressable. This paper provides a synthesis of the literature to date on both the theory of equity, as applied to road pricing, and the findings of empirical and simulation studies of the effects of particular implementations of road pricing, and suggested remedies for real or perceived inequities. To summarize, while there are certainly potential issues with equity associated with road pricing, those issues can be addressed with intelligent mechanism design that provides the right incentives to travelers and uses the raised revenues in a way to achieve desired equitable ends. These include cutting other taxes and investing in infrastructure and services.

Keywords: Equity; Transportation; Road Pricing; Alternative Financing; Tolls; Congestion Pricing. (search for similar items in EconPapers)
JEL-codes: D02 D63 R41 R42 R48 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-geo, nep-mkt and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in Transport Reviews 30(1) 33-57.

Downloads: (external link)
http://hdl.handle.net/11299/179999 First version, 2009 (application/pdf)

Related works:
Journal Article: Equity Effects of Road Pricing: A Review (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nex:wpaper:transportequityreviewpaper

Access Statistics for this paper

More papers in Working Papers from University of Minnesota: Nexus Research Group Contact information at EDIRC.
Bibliographic data for series maintained by David Levinson ( this e-mail address is bad, please contact ).