Allocation of scarce land resources and environment preservation have proved a major concern to economists, engineers and politicians. In dense urban areas, congestion and pollution have been tackled in a variety of ways, depending on morphological characteristics (in particular, on the scarcity of land), as well as on differences in the political prioritisation between the two (possibly conflicting) objectives. Some land-abundant areas, such as North America, focused on addressing congestion, by reducing scarcity through an increase in overall road capacity. Other regions, usually space-constrained (e.g., London, Milan, Singapore), regulate road scarcity through a market-based system, by adopting various forms of city tollsroad pricing. Road pricing schemes reduce the incentives to use a car, thereby lowering congestion and pollution simultaneously. Furthermore, they generate revenue for the institution that collects them. This note discusses the regulation mechanisms for a road network of a given capacity. Whilst economists generally agree on the market-based approach to regulate congestion and pollution, they debate over the details of an efficient design of the road pricing scheme. On the empirical ground, the debate concerns the extent of the efficiency benefits from road pricing along with the circumstances under which such gains outweigh the costs. This note reviews the economics behind road pricing and provides an assessment of some road pricing experiences.
Road Pricing and City Tolls
BOFFA, FEDERICO;
2011-01-01
Abstract
Allocation of scarce land resources and environment preservation have proved a major concern to economists, engineers and politicians. In dense urban areas, congestion and pollution have been tackled in a variety of ways, depending on morphological characteristics (in particular, on the scarcity of land), as well as on differences in the political prioritisation between the two (possibly conflicting) objectives. Some land-abundant areas, such as North America, focused on addressing congestion, by reducing scarcity through an increase in overall road capacity. Other regions, usually space-constrained (e.g., London, Milan, Singapore), regulate road scarcity through a market-based system, by adopting various forms of city tollsroad pricing. Road pricing schemes reduce the incentives to use a car, thereby lowering congestion and pollution simultaneously. Furthermore, they generate revenue for the institution that collects them. This note discusses the regulation mechanisms for a road network of a given capacity. Whilst economists generally agree on the market-based approach to regulate congestion and pollution, they debate over the details of an efficient design of the road pricing scheme. On the empirical ground, the debate concerns the extent of the efficiency benefits from road pricing along with the circumstances under which such gains outweigh the costs. This note reviews the economics behind road pricing and provides an assessment of some road pricing experiences.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
