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Road Congestion Pricing in Europe

Road Congestion Pricing in Europe

Implications for the United States

Edited by Harry W. Richardson and Chang-Hee Christine Bae

In February 2003, the London Congestion Charging Scheme was introduced and in 2006 a similar policy was introduced in Stockholm. In both cases automobile traffic entering the cordon declined by about 20 percent. This book evaluates these and other similar programs exploring their implications for the United States. This study’s value lies in the fact that it examines road pricing in the real world and not simply from a theoretical viewpoint. As a comparative study it will appeal to both policymakers and academics in transportation economics and planning, urban economics, planning and economic geography.

Chapter 2: Profit-Maximising Transit in Combination with a Congestion Charge: An Inter-modal Equilibrium Model

Michael G.H. Bell and Muanmas Wichiensin

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


2. Profit-maximising transit in combination with a congestion charge: an inter-modal equilibrium model Michael G.H. Bell and Muanmas Wichiensin 1 INTRODUCTION Traffic congestion in urban areas is one of the most serious problems for both 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 Gómez-Ibáñez 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 amount of the congestion charge (see, for example, Arnott and Small, 1994; Liu and McDonald, 1999). However, congestion charging affects not only car drivers but also the users of alternative modes as well as decisions about whether or not to travel. Hence, a model which allows for variable demand as well as mode choice is required. In particular, cities considering congestion charging will normally have at least two transit modes (bus and train). These services are often provided by the private sector in some regulated way. In the UK, following bus privatisation in 1980, several studies have focused on the characteristics of the transit market. Some say that the market is contestable while others say the evidence is inconclusive or disputable (Gwilliam et al., 1985; Evans, 1991). Some say that the tendency is for operators to merge rather than for new entries into the...

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