Congestion pricing effects on firm and household location choices in monocentric and polycentric cities

Wenjia Zhang () and Kara M. Kockelman

Regional Science and Urban Economics, 2016, vol. 58, issue C, 1-12

Abstract: This paper develops a spatial general equilibrium model to explore the land use effects of three roadway congestion pricing strategies in both monocentric and polycentric city settings, where household and firm locations and wage rates are endogenously determined. Simulation results show how marginal cost pricing (MCP) of travel in the polycentric setting can cause many jobs (16% in this example) to leave the central business district (CBD) and relocate to a relatively dense but suburban ring. To achieve city-wide welfare gains, efficient land use regulations should permit such job decentralization. Simulations also illuminate how simple, distance-based tolls generate lower welfare improvements, but stimulate similar land use effects. A cordon toll imposed in monocentric cities may agglomerate all firms in a smaller CBD or re-agglomerate parts of firms in a sub-center ring of development. Overall, results highlight how an urban economic model enabling endogenous business and household decisions can illuminate various travel, congestion pricing, and land use connections.

Keywords: Congestion pricing; Polycentric urban economics; Land use; Job decentralization (search for similar items in EconPapers)
JEL-codes: R13 R14 R30 R41 R48 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016604621600003X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:58:y:2016:i:c:p:1-12

DOI: 10.1016/j.regsciurbeco.2016.01.002

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().