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When Should Drivers Be Encouraged To Carpool In Hov Lanes?

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  • Jonathan E. Hughes
  • Daniel Kaffine

Abstract

Policies to encourage carpooling in high‐occupancy vehicle (HOV) lanes have been adopted in the United States to lower congestion and reduce air pollution. We analytically model highway congestion and other vehicle‐related externalities. Encouraging carpooling decreases total costs when congestion relief in mainline lanes outweighs increased HOV lane congestion. Importantly, entry of new drivers via induced demand can negate the benefits of increased carpooling. Using 10 years of traffic data from Los Angeles we estimate time and route‐specific marginal external costs. Because costs vary substantially across routes, hours, and days, current policies to promote carpooling will often increase social costs. (JEL R41, R48, Q53)

Suggested Citation

  • Jonathan E. Hughes & Daniel Kaffine, 2019. "When Should Drivers Be Encouraged To Carpool In Hov Lanes?," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 667-684, January.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:667-684
    DOI: 10.1111/ecin.12728
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    2. Pang, Jindong & An, Lan & Shen, Shulin, 2023. "Gasoline prices, traffic congestion, and carbon emissions," Resource and Energy Economics, Elsevier, vol. 75(C).
    3. Yuan, Fangfang & Wang, Xiaolei & Chen, Zhibin, 2024. "Assessing the impact of ride-sourcing vehicles on HOV-lane efficacy and management strategies," Transport Policy, Elsevier, vol. 150(C), pages 35-52.
    4. Kim, Jinwon, 2022. "Does roadwork improve road speed? Evidence from urban freeways in California," Regional Science and Urban Economics, Elsevier, vol. 93(C).

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    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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