Title: The welfare effects of cordon pricing and area pricing: Simulation with a multi-regional general equilibrium model
Abstract:This paper analyzes the welfare effects of cordon pricing and area pricing through numerical simulations with a multi-regional general equilibrium model. The toll policies achieve about 60% of the eff...This paper analyzes the welfare effects of cordon pricing and area pricing through numerical simulations with a multi-regional general equilibrium model. The toll policies achieve about 60% of the efficiency gains from the Pigouvian congestion tax. Cordon pricing is better if long-distance commuting is prevalent while area pricing is better if city has large central urban area. With the introduction of cordon pricing or area pricing, a toll district becomes more attractive as a residential place but less attractive as a workplace. The toll policies promote short-distance commuting but discourage the use of public transport in toll-free commutes.Read More
Publication Year: 2011
Publication Date: 2011-09-01
Language: en
Type: article
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Cited By Count: 13
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