IDEAS home Printed from https://ideas.repec.org/p/cdl/uctcwp/qt1z55v5r8.html
   My bibliography  Save this paper

Time Consistency of Congestion Tolls

Author

Listed:
  • Glazer, Amihai

Abstract

Consider users who can choose between using two modes of travel (say a road and mass transit), and who can choose to incur a fixed cost that reduces the future costs of using mass transit. A congestion toll on the road may serve two purposes. First, it can induce users in the current period to use transit instead of the congested road. Second, users who anticipate the imposition of tolls may be induced to incur the aforementioned fixed cost, thereby reducing demand for use of the congested road in future periods. This paper focuses on such investment decisions, showing that when government cannot credibly commit to future tolls, the optimal road toll in each period may be low and congestion may be high.

Suggested Citation

  • Glazer, Amihai, 1999. "Time Consistency of Congestion Tolls," University of California Transportation Center, Working Papers qt1z55v5r8, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt1z55v5r8
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/1z55v5r8.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter A. Watt, 2003. "Voluntary Roads And Streets," Economic Affairs, Wiley Blackwell, vol. 23(2), pages 3-9, June.
    2. Kono Tatsuhito & Notoya Hiromichi, 2012. "Is Mandatory Project Evaluation Always Appropriate? Dynamic Inconsistencies of Irreversible and Reversible Projects," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(1), pages 1-31, January.
    3. Tatsuhito Kono & Naoki Kitamura & Kiyoshi Yamasaki & Kazuki Iwakami, 2016. "Quantitative analysis of dynamic inconsistencies in infrastructure planning: an example of coastal levee improvement," Environment and Planning B, , vol. 43(2), pages 401-418, March.
    4. Robin Lindsey, 2010. "Reforming Road User Charges: A Research Challenge For Regional Science," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 471-492, February.

    More about this item

    Keywords

    Social and Behavioral Sciences;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:uctcwp:qt1z55v5r8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/itucbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.