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Optimum congestion pricing in a complex network

Author

Listed:
  • Babri, Sahar

    (Dept. of Business and Management Science, Norwegian School of Economics)

  • McArthur, David Philip

    (Dept. of Health Management and Health Economics, University of Oslo)

  • Thorsen, Inge

    (Dept. of Economics, Stord/Haugesund University College)

  • Ubøe, Jan

    (Dept. of Business and Management Science, Norwegian School of Economics)

Abstract

Road tolls are a well established way of dealing with problems of congestion. Over recent years, the literature has expanded to take account of how congestion charges might interact with imperfections in other markets. In this paper, we consider the case where congestion occurs within a complex road network, with congestion on multiple links. To derive a truly optimal toll, account must be taken of the entire network. As a case study, we take a stylised version of the road network in Bergen, Norway.

Suggested Citation

  • Babri, Sahar & McArthur, David Philip & Thorsen, Inge & Ubøe, Jan, 2013. "Optimum congestion pricing in a complex network," Discussion Papers 2013/4, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2013_004
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    File URL: http://www.nhh.no/Files/Filer/institutter/for/dp/2013/0413.pdf
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    References listed on IDEAS

    as
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    3. Liu, Louie Nan & McDonald, John F., 1998. "Efficient Congestion Tolls in the Presence of Unpriced Congestion: A Peak and Off-Peak Simulation Model," Journal of Urban Economics, Elsevier, vol. 44(3), pages 352-366, November.
    4. Rouwendal, Jan & Verhoef, Erik T., 2006. "Basic economic principles of road pricing: From theory to applications," Transport Policy, Elsevier, vol. 13(2), pages 106-114, March.
    5. Chongwoo Choe & Harry Clarke, 2000. "Pricing and Investment Decisions for a Tollway With Possible Route Substitution onto Alternative Congested Roads," Australian Economic Papers, Wiley Blackwell, vol. 39(1), pages 84-91, March.
    6. Ieromonachou, P. & Potter, S. & Warren, J.P., 2006. "Norway's urban toll rings: Evolving towards congestion charging?," Transport Policy, Elsevier, vol. 13(5), pages 367-378, September.
    7. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
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    Cited by:

    1. Omid M. Rouhani & H. Oliver Gao, 2016. "Evaluating Various Road Ownership Structures and Potential Competition on an Urban Road Network," Networks and Spatial Economics, Springer, vol. 16(4), pages 1019-1042, December.

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    More about this item

    Keywords

    Congestion pricing; complex network;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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