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A consumer surplus analysis of market-based demand management policies in Southern California

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  • Cameron, Michael

Abstract

The purpose of this paper is twofold. Primarily the paper makes a quantitative case for implememtation of market-based demand management policies, such as congestion pricing, to reduce urban traffic congestion and mobile-source air pollution. In addition the paper demonstrates the usefulness of the consumer surplus model for performing transportation policy analysis. The model is used to estimate that a fee of $0.05 per vehicle mile (roughly equivalent to a $1.25 per gallon gas tax) would increase the net transportation benefits of Southern California's surface transportation system by 10% from approximately $30 billion to $33 billion per year.

Suggested Citation

  • Cameron, Michael, 1994. "A consumer surplus analysis of market-based demand management policies in Southern California," Transport Policy, Elsevier, vol. 1(4), pages 213-220, October.
    • Handle: RePEc:eee:trapol:v:1:y:1994:i:4:p:213-220
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