Microgeographic speed, reliability, and traffic externalities

Ian Herzog

Economics of Transportation, 2024, vol. 39, issue C

Abstract: This paper estimates congestion externalities on a broad sample of roads in England’s capital region. A fixed effects approach that compares across times of day finds that 10% more traffic increases travel time by 4%, erodes reliability, and finds smallest marginal effects on high-capacity roads. I incorporate both expected travel time and reliability into a model of congestion externalities. Combining the model with travel data, I find that Central London’s Congestion Charge exceeds tolled drivers’ external costs if they only reflect travel time and reliability. Despite the large toll in London’s city centre, I find that deadweight loss in untolled parts of the city remains substantial, and that accounting for reliability increases deadweight loss by as much as 55%.

Keywords: Traffic; Externality; Congestion charge; Uber movement (search for similar items in EconPapers)
JEL-codes: D62 H23 R41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:39:y:2024:i:c:s2212012224000303

DOI: 10.1016/j.ecotra.2024.100371

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