Regional labor markets, commuting, and the economic impact of road pricing
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),
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