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
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: R48 R52 R13 H21 H23 D61 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Second-best Urban Tolls in a Monocentric City with Housing Market Regulations (2015)
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:transb:v:117:y:2018:i:pa:p:342-359
Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01
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 Nithya Sathishkumar ().