EconPapers    
Economics at your fingertips  
 

Second-best urban tolls in a monocentric city with housing market regulations

Ioannis Tikoudis, Erik Verhoef and Jos van Ommeren ()

Transportation Research Part B: Methodological, 2018, vol. 117, issue PA, 342-359

Abstract: This paper investigates second-best congestion pricing in a monocentric city characterized by distortionary regulations in the housing market (building height restrictions, no-development areas and property taxation). We demonstrate that the welfare gain of a Pigouvian tax may first fall and then increase as building height restrictions become more stringent. For example, a Pigouvian toll imposed in a city without restrictions may produce up to 40% larger welfare gains than Pigouvian tolling in a city with a mild, uniform in space, floor-to-area ratio restriction. In the presence of a tax-induced distortion, deviations of the Pigouvian toll can lead to non-negligible welfare gains. We discuss the important policy implications of the above findings.

Keywords: Road pricing; Building height restrictions; Floor-to-area ratio regulations; No-development areas; Property tax; Monocentric city; Cost-benefit analysis (search for similar items in EconPapers)
JEL-codes: D61 H21 H23 R13 R48 R52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261516308001
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Second-best Urban Tolls in a Monocentric City with Housing Market Regulations (2015) Downloads
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:transb:v:117:y:2018:i:pa:p:342-359

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2018.08.014

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:transb:v:117:y:2018:i:pa:p:342-359