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Implications of interdependencies between charging strategies of local authorities for the protection of sensitive areas in the Trans-Pennine Corridor

Astrid Gühnemann, Andrew Koh, Simon Shepherd and Mary Lawler

Utilities Policy, 2011, vol. 19, issue 1, 42-52

Abstract: This paper investigates interdependencies between road user charging strategies of neighbouring institutions and discusses the implications for the optimal strategy for the protection of environmentally sensitive areas. Using simulation models, welfare optimising cordon charges including pollution costs have been determined for three different scenarios for the Peak District and Sheffield Air Quality Management Area: a global regulator, a myopic regulator and a non-cooperative Nash game. The results show revenue extraction and relocation of traffic in the non-cooperative setting. Under global regulation lacking monetary values for natural assets in current appraisal guidance lead to a bias towards densely populated conurbations.

Keywords: Road; user; charging; Air; pollution; Governmental; competition; Environmentally; sensitive; areas (search for similar items in EconPapers)
Date: 2011
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Handle: RePEc:eee:juipol:v:19:y:2011:i:1:p:42-52