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Urban transport pricing reform with two levels of government: A case study of Brussels

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  • Proost, Stef
  • Sen, Ahksaya

Abstract

This paper analyses two challenges in the reform of urban transport pricing. First the construction of an optimal package of urban transport pricing instruments assuming one benevolent welfare maximizer. It is found that parking and tolling are the most important elements of the optimal package and that these policy instruments are sub-additive in their benefits. The second problem is the use of pricing instruments by different government levels: the urban government controls parking fees and the regional government controls a cordon toll. It is found that the overall efficiency losses in the Nash and Stackelberg equilibria are limited.

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  • Proost, Stef & Sen, Ahksaya, 2006. "Urban transport pricing reform with two levels of government: A case study of Brussels," Transport Policy, Elsevier, vol. 13(2), pages 127-139, March.
    • Handle: RePEc:eee:trapol:v:13:y:2006:i:2:p:127-139
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    1. Palma, André de & Lindsey, Robin & Proost, Stef, 2006. "Research challenges in modelling urban road pricing: An overview," Transport Policy, Elsevier, vol. 13(2), pages 97-105, March.
    2. Bekken, Jon-Terje & Norheim, Bård, 2007. "Chapter 7 Use of toll revenues and investment in Oslo," Research in Transportation Economics, Elsevier, vol. 19(1), pages 143-160, January.
    3. Hörcher, Daniel & De Borger, Bruno & Graham, Daniel J., 2023. "Subsidised transport services in a fiscal federation: Why local governments may be against decentralised service provision," Economics of Transportation, Elsevier, vol. 34(C).
    4. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    5. Vickerman, Roger, 2008. "Provision of public transport under conflicting regulatory regimes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1176-1182, November.
    6. Fung, Chau Man & Proost, Stef, 2017. "Can we decentralize transport taxes and infrastructure supply?," Economics of Transportation, Elsevier, vol. 9(C), pages 1-19.
    7. Sen, Akshaya Kumar & Tiwari, Geetam & Upadhyay, Vrajaindra, 2013. "Strategies of state and local government in management of urban transport problems – A case of Delhi," Research in Transportation Economics, Elsevier, vol. 38(1), pages 11-21.
    8. Feder, Christophe, 2018. "Decentralization and spillovers: A new role for transportation infrastructure," Economics of Transportation, Elsevier, vol. 13(C), pages 36-47.
    9. Ubbels, Barry & Verhoef, Erik T., 2008. "Governmental competition in road charging and capacity choice," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 174-190, March.
    10. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    11. Laird, James & Nash, Chris & Shepherd, Simon, 2007. "Chapter 8 Cordon charges and the use of revenue: A case study of Edinburgh," Research in Transportation Economics, Elsevier, vol. 19(1), pages 161-187, January.
    12. Fang Zong & Yanan He & Yixin Yuan, 2015. "Dependence of Parking Pricing on Land Use and Time of Day," Sustainability, MDPI, vol. 7(7), pages 1-21, July.
    13. Watling, D.P. & Shepherd, S.P. & Koh, A., 2015. "Cordon toll competition in a network of two cities: Formulation and sensitivity to traveller route and demand responses," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 93-116.
    14. Rodrigo Garrido, 2008. "Road Pricing for Hazardous Materials Transportation in Urban Networks," Networks and Spatial Economics, Springer, vol. 8(2), pages 273-285, September.
    15. Toon Vandyck & Stef Proost, 2012. "Inefficiencies in regional commuting policy," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 659-689, August.
    16. Sowmya Karri & Meera M. Dhabu, 2022. "Multistage Game Model Based Dynamic Pricing for Car Parking Slot to Control Congestion," Sustainability, MDPI, vol. 14(19), pages 1-15, September.
    17. Eda Ustaoglu & Brendan Williams, 2020. "Cost-Benefit Evaluation Tools on the Impacts of Transport Infrastructure Projects on Urban Form and Development," Chapters, in: Vito Bobek (ed.), Smart Urban Development, IntechOpen.
    18. Inturri, Giuseppe & Ignaccolo, Matteo, 2011. "Modelling the impact of alternative pricing policies on an urban multimodal traffic corridor," Transport Policy, Elsevier, vol. 18(6), pages 777-785, November.
    19. Rotaris, Lucia & Danielis, Romeo & Marcucci, Edoardo & Massiani, Jérôme, 2010. "The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost-benefit analysis assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 359-375, June.

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