Second-best Congestion Pricing Schemes in the Monocentric City

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Paper submission from Erik Verhoef ([e-mail])Discussion Paper Submission Form - STEP 1This discussion paper abstract is submitted by Erik Verhoef ([e-mail])Template-Type: ReDIF-Paper 1.0Series: Tinbergen Institute Discussion PapersCreation-Date: Number: Author-Name: Erik T VerhoefAuthor-Email: [e-mail]-Workplace-Name: VUTitle: SECOND-BEST CONGESTION PRICING SCHEMES IN THE MONOCENTRIC CITYAbstract: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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 04-110/3

Classification and Topics

• Classification: Wirtschaft ; Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise ; Transportation Economics: Government Pricing and Policy ; Externalities
• Subject: Traffic congestion ; second-best pricing ; urban structure ; spatial general equilibrium ; Verkehrsstau ; Straßenbenutzungsgebühr ; Second Best ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Verhoef, Erik T.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/86224
• Last update: 10.03.2025, 11:42 AM CET