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Welfare losses of road congestion: Evidence from Rome

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  • Russo, Antonio
  • Adler, Martin W.
  • Liberini, Federica
  • van Ommeren, Jos N.

Abstract

We estimate the marginal external cost and welfare losses due to congestion for a large number of roads in Rome, Italy. We show that the marginal external cost is substantial, equaling about two thirds of the private time cost of travel. About one third of this cost is borne by public transport users. Our results imply that policies designed to reduce congestion can result in important welfare gains.

Suggested Citation

  • Russo, Antonio & Adler, Martin W. & Liberini, Federica & van Ommeren, Jos N., 2021. "Welfare losses of road congestion: Evidence from Rome," Regional Science and Urban Economics, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:regeco:v:89:y:2021:i:c:s0166046221000521
    DOI: 10.1016/j.regsciurbeco.2021.103692
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    More about this item

    Keywords

    Marginal external congestion costs; Deadweight loss; Public transport;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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