The urban toll revenue recycling: what is the optimal share distributed towards mass transit system?

François Mirabel () and Mathias Reymond
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François Mirabel: MRE - Montpellier Recherche en Economie - UM - Université de Montpellier

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Abstract: The paper examines the question of the redistribution of toll revenue as seen in a bottleneck congestion model. Our objective is to analyse the impact of this redistribution on total cost and on modal split between railroad and road. Following Tabuchi's two-mode model (J. Urban Econ. 34 (1993) 414), we integrate a redistribution of toll revenue between mass transit and public budget. This analysis is new in literature relative to queing models (Arnott et al. 1993). A very interesting result is shown in our model : in a pricing regime with a …ne toll and a mass transit fare based on the average cost, the optimal redistribution towards mass transit users allows to obtain an equilibrium similar to the benchmark optimal situation with marginal cost fare.

Keywords: Urban transportation; Congestion pricing; Public Transportation; Revenue; R48; Road pricing (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-01830227v1
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