Title: Regional labor markets, commuting, and the economic impact of road pricing
Authors: VANDYCK TOONRUTHERFORD THOMAS F.
Citation: REGIONAL SCIENCE AND URBAN ECONOMICS vol. 73 p. 217-236
Publisher: ELSEVIER SCIENCE BV
Publication Year: 2018
JRC N°: JRC90457
ISSN: 0166-0462 (online)
URI: http://publications.jrc.ec.europa.eu/repository/handle/JRC90457
DOI: 10.1016/j.regsciurbeco.2018.07.005
Type: Articles in periodicals and books
Abstract: 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.
JRC Directorate:Energy, Transport and Climate

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