Reducing traffic externalities by multiple-cordon pricing

Jyh-Fa Tsai () and Shao-Yu Lu ()
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Jyh-Fa Tsai: National Taipei University
Shao-Yu Lu: CCIS Real Estate Joint Appraisers Firm

Transportation, 2018, vol. 45, issue 2, No 16, 597-622

Abstract: Abstract The second-best congestion pricing schemes including common optimum, one cordon, and multiple cordons schemes are compared with the first-best optimum pricing scheme. A cross-subsidy effect exists in these second-best pricing models. However, the scheme with more cordons will diminish the cross-subsidy and approach an efficient and equitable outcome. The relative efficiency of a cordon pricing scheme for the case of Taipei metropolis is very high. One single cordon yields excellent performance of 93% relative efficiency. There might be some factors causing the good results: the uncongested traffic condition, the linear unit distance cost in traffic flow forming a nonlinear cost function, and the trip demands with continuous space and the same destination (the central business district) in the network.

Keywords: Multiple-cordon pricing; Second-best congestion pricing; Traffic congestion externality; Social surplus (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11116-016-9742-2

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