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An Integrated Approach to Urban Road Pricing

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  • Hanna Armelius

Abstract

This paper analyses an integrated urban road pricing policy based on an automatic payment system for cars. Like Glazer and Niskanen (2000) it studies congestion tolls with heterogeneous commuters, but focuses on welfare effects and extends their model to include a choice of departure time, as well as travel mode. The author finds that tolls can be welfare improving even if the public transit mode normally used for substitution is also congested. If, for some reason, public transit charges cannot be changed, substitution towards off-peak travel can be stimulated by a combined road toll and parking duties policy made possible by modern automatic vehicle-identification technologies. © 2005 LSE and the University of Bath

Suggested Citation

  • Hanna Armelius, 2005. "An Integrated Approach to Urban Road Pricing," Journal of Transport Economics and Policy, University of Bath, vol. 39(1), pages 75-92, January.
    • Handle: RePEc:tpe:jtecpo:v:39:y:2005:i:1:p:75-92
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    Cited by:

    1. Marcycruz de Leon & Thomas M Fullerton Jr & Brian W Kelly, 2009. "Tolls, Exchange Rates, And Borderplex International Bridge Traffic," Articles, International Journal of Transport Economics, vol. 36(2).
    2. Safirova, Elena & Gillingham, Kenneth & Houde, Sébastien, 2007. "Measuring marginal congestion costs of urban transportation: Do networks matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 734-749, October.
    3. Armelius, Hanna & Hultkrantz, Lars, 2006. "The politico-economic link between public transport and road pricing: An ex-ante study of the Stockholm road-pricing trial," Transport Policy, Elsevier, vol. 13(2), pages 162-172, March.
    4. Kutzbach, Mark J., 2009. "Motorization in developing countries: Causes, consequences, and effectiveness of policy options," Journal of Urban Economics, Elsevier, vol. 65(2), pages 154-166, March.
    5. Marcucci, Edoardo & Marini, Marco A. & Ticchi, Davide, 2005. "Road pricing as a citizen-candidate game," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 31, pages 28-45.

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