Road Pricing, Traffic Congestion and Economic Welfare: A Note

Ingo_Böbel and Casimir_de_Rham
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Ingo_Böbel: International University of Monaco
Casimir_de_Rham: International University of Monaco
Authors registered in the RePEc Author Service: Ingo Böbel

Microeconomics from University Library of Munich, Germany

Abstract: Only recently, the subject of road pricing to reduce traffic congestion gained increasing importance in Europe. This paper uses a standard microeconomic approach to show that road user price charging to avoid traffic congestion is optimal from a society’s point of view as it improves economic efficiency of allocating a scarce resource (road space) by reducing the welfare loss (as being measured by a loss in consumer surplus) for everyone in the society.

Keywords: Road pricing; Tragedy of the Commons; Economic Welfare (search for similar items in EconPapers)
JEL-codes: D (search for similar items in EconPapers)
Pages: 11 pages
Date: 2004-11-01
New Economics Papers: this item is included in nep-ure
Note: Type of Document - zip; pages: 11. 11 pages, 8 figures included, zip-file
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpmi:0411001

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