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Congestion pricing and long term urban form: Application to Paris region

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  • De Lara, Michel
  • de Palma, André
  • Kilani, Moez
  • Piperno, Serge

Abstract

We propose an efficient algorithm that solves urban equilibrium with traffic congestion. The procedure we propose is based on the monocentric model, but we illustrate how it can be used in the case of more than one business center. As a case study we focus on the region of Paris and discuss the impacts of road pricing on urban form. Among road pricing schemes, we consider the linear toll (proportional to traveled distance) and cordon toll (a toll paid once the driver crosses a given border). Both schemes are compared to the no toll case (actual situation) and to the first-best (where total costs in the city are minimized). The linear toll is equivalent to an increase in the vehicle operating cost. It performs well with respect to the first-best solution but, since it applies identically to all trips, it is not likely to be relevant in practice. By comparison to the no-toll situation, optimal congestion pricing reduces the radius of the city and the average travel distance by 34% and 15%, respectively.

Suggested Citation

  • De Lara, Michel & de Palma, André & Kilani, Moez & Piperno, Serge, 2013. "Congestion pricing and long term urban form: Application to Paris region," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 282-295.
    • Handle: RePEc:eee:regeco:v:43:y:2013:i:2:p:282-295
    DOI: 10.1016/j.regsciurbeco.2012.07.007
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    More about this item

    Keywords

    Monocentric model; Equilibrium computation; Transport pricing; Long-term impacts;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • 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

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