Cities provide the benefits that come with economic density but often face congested traffic and high unemployment. In this paper, we study economy-wide and distributional implications of congestion pricing in the presence of agglomeration externalities and unemployment. We develop a spatial general equilibrium model to show that indirect effects of time-invariant congestion tolls can lead to welfare losses for low-skilled urban residents by changing commuting patterns of high-skilled workers. Next, we reveal a set of policy designs that improve welfare across space and worker skill levels by combining time-sensitive road pricing, transport network capacity expansions, and toll revenue redistribution.
VANDYCK Toon;
RUTHERFORD Thomas F.;
2018-11-21
ELSEVIER SCIENCE BV
JRC90457
0166-0462 (online),
https://publications.jrc.ec.europa.eu/repository/handle/JRC90457,
10.1016/j.regsciurbeco.2018.07.005 (online),
| Name | Country | City | Type |
|---|
This document is only visible at the Commission level.
You are not authorized to publish or distribute it outside the European Commission.
This is a public document. You can share this publication.
Datasets
| ID | Title | Public URL |
|---|
Dataset collections
| ID | Acronym | Title | Public URL |
|---|
Scripts / source codes
| Description | Public URL |
|---|
Additional supporting files
| File name | Description | File type |
|---|