The Welfare Consequences of Urban Traffic Regulations

Isis Durrmeyer and Nicolas Martinez

No 22-1378, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We develop and estimate a structural model of urban transportation to evaluate traffic-reducing policies in Paris. Individuals choose transportation mode and departure time subject to heterogeneous preferences, scheduling constraints, and congestion technologies that vary across city zones. We find that mode switching dominates temporal substitution, limiting concerns about trip rescheduling undermining the effectiveness of peak-hour interventions. All policies reduce consumer surplus, as speed gains never offset their costs, but toll-based instruments generate welfare gains through revenue redistribution. The per-kilometer toll achieves, on average, 77.5% of first-best welfare gains across stringency levels.

Keywords: structural model; policy evaluation, transportation; congestion, distributional effects; air pollution (search for similar items in EconPapers)
JEL-codes: L9 Q52 R41 (search for similar items in EconPapers)
Date: 2022-11-04, Revised 2026-06
New Economics Papers: this item is included in nep-env, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:127467

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