Table of Contents

Pricing in Road Transport

Pricing in Road Transport

A Multi-Disciplinary Perspective

Edited by Erik Verhoef, Michiel Bliemer, Linda Steg and Bert van Wee

Transport pricing is high on the political agenda throughout the world, but as the authors illustrate, governments seeking to implement this often face challenging questions and significant barriers. The associated policy and research questions cannot always be addressed adequately from a mono-disciplinary perspective. This book shows how a multi-disciplinary approach may lead to new types of analysis and insights, contributing to a better understanding of the intricacies of transport pricing and eventually to a potentially more effective and acceptable design of such policies. The study addresses important policy and research themes such as the possible motives for introducing road transport pricing and potential conflicts between these motives, behavioural responses to transport pricing for households and firms, the modelling of transport pricing, and the acceptability of pricing.

Chapter 7: Transit Market Effects on Socially Optimal Congestion Charging

Michael Bell and Muanmas Wichiensin

Subjects: economics and finance, transport, environment, transport, urban and regional studies, transport


7. Transit market effects on socially optimal congestion charging Michael Bell and Muanmas Wichiensin 7.1 INTRODUCTION Traffic congestion in urban areas is one of the most serious problems for the government and transport planners. Since a congestion charging scheme was first introduced in Singapore more than 30 years ago, big cities like Seoul and Tokyo have considered such schemes, with London implementing congestion charging in 2003 (see reviews in Gomez-Ibañez and Small, 1994; May and Milne, 2000). From this evidence, many studies have been made for the auto mode network in order to determine the optimal congestion charge (see, for example, Arnott and Small, 1994; Liu and McDonald, 1999). However, congestion charging affects not only car drivers who must pay the charge but also the users of alternative modes, as well as decisions about whether to travel in the first place. Hence, a model which allows for variable demand, as well as mode choice, is required for a comprehensive assessment of the impact. In particular, cities considering congestion charging will normally have two transit modes (bus and train). These services are often provided by the private sector in some regulated way. In the UK, following bus privatization in 1980, several studies have focused on the characteristics of the transit market. Some say that the market is contested (Beesley and Glaister, 1985), while others that the evidence is inconclusive or disputable (Gwilliam et al., 1985; Evans, 1991). Some say that the tendency for an operator seeking to...

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