Congestion pricing and long term urban form: Application to Paris region

Michel De Lara, André de Palma (), Moez Kilani and Serge Piperno

Regional Science and Urban Economics, 2013, vol. 43, issue 2, 282-295

Abstract: We propose an efficient algorithm that solves urban equilibrium with traffic congestion. The procedure we propose is based on the monocentric model, but we illustrate how it can be used in the case of more than one business center. As a case study we focus on the region of Paris and discuss the impacts of road pricing on urban form. Among road pricing schemes, we consider the linear toll (proportional to traveled distance) and cordon toll (a toll paid once the driver crosses a given border). Both schemes are compared to the no toll case (actual situation) and to the first-best (where total costs in the city are minimized). The linear toll is equivalent to an increase in the vehicle operating cost. It performs well with respect to the first-best solution but, since it applies identically to all trips, it is not likely to be relevant in practice. By comparison to the no-toll situation, optimal congestion pricing reduces the radius of the city and the average travel distance by 34% and 15%, respectively.

Keywords: Monocentric model; Equilibrium computation; Transport pricing; Long-term impacts (search for similar items in EconPapers)
JEL-codes: C63 H2 R41 R48 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Working Paper: Congestion pricing and long term urban form: Application to Paris region (2013)
Working Paper: Congestion pricing and long term urban form: Application to Paris region (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:43:y:2013:i:2:p:282-295

DOI: 10.1016/j.regsciurbeco.2012.07.007

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