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Microgeographic speed, reliability, and traffic externalities

Author

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  • Herzog, Ian

Abstract

This paper estimates congestion externalities on a broad sample of roads in England’s capital region. A fixed effects approach that compares across times of day finds that 10% more traffic increases travel time by 4%, erodes reliability, and finds smallest marginal effects on high-capacity roads. I incorporate both expected travel time and reliability into a model of congestion externalities. Combining the model with travel data, I find that Central London’s Congestion Charge exceeds tolled drivers’ external costs if they only reflect travel time and reliability. Despite the large toll in London’s city centre, I find that deadweight loss in untolled parts of the city remains substantial, and that accounting for reliability increases deadweight loss by as much as 55%.

Suggested Citation

  • Herzog, Ian, 2024. "Microgeographic speed, reliability, and traffic externalities," Economics of Transportation, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:ecotra:v:39:y:2024:i:c:s2212012224000303
    DOI: 10.1016/j.ecotra.2024.100371
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    More about this item

    Keywords

    Traffic; Externality; Congestion charge; Uber movement;
    All these keywords.

    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
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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