Road Pricing, Traffic Congestion and Economic Welfare: A Note

Ingo_Böbel and Casimir_de_Rham
Additional contact information
Ingo_Böbel: International University of Monaco
Casimir_de_Rham: International University of Monaco
Authors registered in the RePEc Author Service: Ingo Böbel ()

Microeconomics from EconWPA

Abstract: Only recently, the subject of road pricing to reduce traffic congestion gained increasing importance in Europe. This paper uses a standard microeconomic approach to show that road user price charging to avoid traffic congestion is optimal from a society’s point of view as it improves economic efficiency of allocating a scarce resource (road space) by reducing the welfare loss (as being measured by a loss in consumer surplus) for everyone in the society.

Keywords: Road pricing; Tragedy of the Commons; Economic Welfare (search for similar items in EconPapers)
JEL-codes: D D (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2004-11-01
Note: Type of Document - zip; pages: 11. 11 pages, 8 figures included, zip-file
View list of references

Downloads: (external link)
http://129.3.20.41/eps/mic/papers/0411/0411001.zip (application/zip)
http://129.3.20.41/eps/mic/papers/0411/0411001.pdf (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0411001

Access Statistics for this paper

More papers in Microeconomics from EconWPA
Series data maintained by EconWPA ().