EconPapers    
Economics at your fingertips  
 

Second-best Congestion Pricing Schemes in the Monocentric City

Erik Verhoef

ERSA conference papers from European Regional Science Association

Abstract: This paper considers second-best congestion pricing in the monocentric city, with endogenous residential density and endogenous labour supply. A spatial general equilibrium model is developed that allows consideration of the three-way interactions between urban density, traffic congestion and labour supply. Congestion pricing schemes are analyzed that are second best ‘by design’ (and not because distortions exist elsewhere in the spatial economy), like cordon charging and flat kilometre charges. Both for Cobb-Douglas utility and for CES utility, the analyses suggest that the relative welfare losses from second-best pricing, compared to first-best pricing, are surprisingly small. *Affiliated to the Tinbergen Institute, Roetersstraat 31, 1018 WB Amsterdam. Key words: Traffic congestion, second-best pricing, urban structure, spatial general equilibrium JEL codes: R41, R48, D62

Date: 2004-08
New Economics Papers: this item is included in nep-geo, nep-mic and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/408.pdf (application/pdf)

Related works:
Journal Article: Second-best congestion pricing schemes in the monocentric city (2005) Downloads
Working Paper: Second-best Congestion Pricing Schemes in the Monocentric City (2004) 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:wiw:wiwrsa:ersa04p408

Access Statistics for this paper

More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().

 
Page updated 2024-05-20
Handle: RePEc:wiw:wiwrsa:ersa04p408