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The urban toll revenue recycling : what is the optimal share distributed towards mass transit system?

Author

Listed:
  • François Mirabel

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

  • Mathias Reymond

    (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne)

Abstract

The paper examines the question of the redistribution of toll revenue as seen in a bottleneck congestion model. Our objective is to analyse the impact of this redistribution on total cost and on modal split between railroad and road. Following Tabuchi's two-mode model (J. Urban Econ. 34 (1993) 414), we integrate a redistribution of toll revenue between mass transit and public budget. This analysis is new in literature relative to queing models (Arnott et al. 1993). A very interesting result is shown in our model : in a pricing regime with a …ne toll and a mass transit fare based on the average cost, the optimal redistribution towards mass transit users allows to obtain an equilibrium similar to the benchmark optimal situation with marginal cost fare.

Suggested Citation

  • François Mirabel & Mathias Reymond, 2011. "The urban toll revenue recycling : what is the optimal share distributed towards mass transit system?," Working Papers hal-01830227, HAL.
    • Handle: RePEc:hal:wpaper:hal-01830227
    Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-01830227
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    References listed on IDEAS

    as
    1. Yukihiro Kidokoro, 2005. "London-type congestion tax with revenue-recycling," Economics Bulletin, AccessEcon, vol. 18(1), pages 1-6.
    2. Mirabel, François & Reymond, Mathias, 2011. "Bottleneck congestion pricing and modal split: Redistribution of toll revenue," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 18-30, January.
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    More about this item

    Keywords

    Urban transportation; Congestion pricing; Public Transportation; Revenue; R48; Road pricing;
    All these keywords.

    JEL classification:

    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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