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Estimating Urban Road Congestion Charges

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  • Newbery, David
  • Santos, Georgina

Abstract

Economists wishing to analyse road congestion and road pricing have usually relied on link-based speed-flow relationships. These may provide a poor description of urban congestion, which mainly arises from delays at intersections. Using the simulation model SATURN, we investigate the second-best proportional traffic reduction and find that linear speed-flow relations describe network flows quite well in eight English towns, though the predicted congestion costs and charges overstate those apparently required in our second best model. We then confront the results with feasible optimal cordon charges, and find them reasonably correlated, but imperfect predictors.

Suggested Citation

  • Newbery, David & Santos, Georgina, 2002. "Estimating Urban Road Congestion Charges," CEPR Discussion Papers 3176, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3176
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    References listed on IDEAS

    as
    1. Newbery, David M, 1990. "Pricing and Congestion: Economic Principles Relevant to Pricing Roads," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(2), pages 22-38, Summer.
    2. Newbery, David M, 1988. "Road Damage Externalities and Road User Charges," Econometrica, Econometric Society, vol. 56(2), pages 295-316, March.
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    Cited by:

    1. Martin Koning, 2009. "La congestion du boulevard périphérique parisien : Estimations, évolution 2000-2007, discussions," Post-Print halshs-00363389, HAL.
    2. Ian W.H. Parry, 2009. "Pricing Urban Congestion," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 461-484, September.

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    More about this item

    Keywords

    Traffic congestion; Road pricing; Efficient charges; Congestion tolls;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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