Urban Growth Boundaries: An Effective Second-Best Remedy for Unpriced Traffic Congestion?

Jan Brueckner

No 50610, Working Papers from University of California-Irvine, Department of Economics

Abstract: This paper evaluates the efficacy of the urban growth boundary (UGB) as a second-best substitute for a first-best toll regime in a congested city. Numerical results show that, while a UGB is welfare improving, validating previous theoretical results, the utility gain it generates is a very small fraction of that achieved under a toll regime. Thus, the UGB is not a useful instrument for attacking the distortions caused by unpriced traffic congestion.

Pages: 16 pages
Date: 2005-07
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (6)

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Journal Article: Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:irv:wpaper:050610

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