How should passenger travel in Mexico City be priced?
Ian Parry () and
Govinda Timilsina ()
Journal of Urban Economics, 2010, vol. 68, issue 2, 167-182
This paper uses an analytical-simulation model to examine the optimal pricing of the passenger transportation system in Mexico City. The model incorporates travel by auto, microbus, public bus, and rail, as well as externalities from local and global air pollution, traffic congestion, and road accidents. In our benchmark case, the optimal gasoline tax is $2.72 per gallon, or 16 times the current tax. However, a per mile toll would reduce traffic congestion, the largest externality, more directly, and we put the optimized auto toll at 20.3 cents per mile. Tolls on microbuses also improve efficiency, though the gains are on a smaller scale, as are those from reforming public transit fares.
Keywords: Gasoline; taxes; Mileage; tolls; Transit; subsidy; Pollution; Congestion; Mexico; City; Welfare; effects (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: How Should Passenger Travel in Mexico City Be Priced? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:68:y:2010:i:2:p:167-182
Access Statistics for this article
Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange
More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().