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The Environmental Benefits from Road Pricing

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Abstract

In this paper the environmental benefits of optimal tolls in eight English towns are estimated. Tolls are simulated using the SATURN model (Simulation and Assignment of Traffic to Urban Road Networks) with associated software to simulate the changes in traffic patterns resulting from cordon tolls. With these results the optimal tolls are computed together with the resulting levels and speeds of traffic in each of our study towns. Changes in vehicle emissions are estimated and reduction in health and global warming costs computed. One of the main results is that any toll designed to reduce traffic congestion would yield positive environmental benefits.

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  • Santos, G. & Rojey, L. & Newbery, D.M., 2000. "The Environmental Benefits from Road Pricing," Cambridge Working Papers in Economics 0020, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0020
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    1. David M. Newbery & Georgina Santos, 1999. "Road taxes, road user charges and earmarking," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 103-132, June.
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    1. Safirova, Elena A. & Houde, Sébastien & Harrington, Winston, 2008. "Marginal Social Cost Pricing on a Transportation Network: Comparison of Second-Best Policies," RFF Working Paper Series dp-07-52, Resources for the Future.
    2. Teresa Palmer Tous & Antoni Riera Font, 2005. "Road transport taxation: a critical review of their internalising effectiveness," Hacienda Pública Española / Review of Public Economics, IEF, vol. 173(2), pages 165-191, June.
    3. Rau, Philipp & Spinler, Stefan, 2016. "Investment into container shipping capacity: A real options approach in oligopolistic competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 130-147.
    4. Cerruti, Davide, 2013. "No free polluting anymore: The impact of a vehicle pollution charge on air quality," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150575, Agricultural and Applied Economics Association.
    5. Georgina Santos & David Newbery, 2001. "Urban Congestion Charging: Theory, Practice and Environmental Consequences," CESifo Working Paper Series 568, CESifo.

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