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Road pricing and users' surplus

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  • Ferrari, Paolo

Abstract

This paper presents an analysis of the urban transport system conducted in order to verify the existence of situations in which road pricing could produce not only a reduction in congestion and pollution, but also an increase in users' surplus. The results obtained by using a theoretical model of the transport system for urban areas travelled by private vehicles and public transport buses show that the efficiency of road pricing as a means to enhance user surplus essentially depends on how much part of the cost borne by users of public transport is due to congestion and on the proportion of users who are captive to public transport.

Suggested Citation

  • Ferrari, Paolo, 2005. "Road pricing and users' surplus," Transport Policy, Elsevier, vol. 12(6), pages 477-487, November.
    • Handle: RePEc:eee:trapol:v:12:y:2005:i:6:p:477-487
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    References listed on IDEAS

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    13. repec:bla:scandj:v:103:y:2001:i:4:p:645-71 is not listed on IDEAS
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    1. Ferrari, Paolo, 2010. "Willingness to spend and road pricing rates," Transport Policy, Elsevier, vol. 17(3), pages 160-172, May.
    2. Jian Wang & Libing Chi & Xiaowei Hu & Hongfei Zhou, 2014. "Urban Traffic Congestion Pricing Model with the Consideration of Carbon Emissions Cost," Sustainability, MDPI, vol. 6(2), pages 1-16, February.

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