Congestion pricing and long term urban form: Application to Ile-de-France

Abstract

We propose an efficient algorithm that solves the monocentric city model with traffic congestion, and use it to explore the impact of congestion pricing on urban forms and, hence, on transport volume, CO2 emissions and energy consumption. The application focuses on the region Ie-de-France. Four pricing policies are considered: no toll, where transport cost is equal to the vehicle operating cost, cordon toll where users pay the toll when they drive inside cordon region linear toll (optimal under the class of linear tolls) and optimal toll (or first-best toll). The linear toll is equivalent to an increase in the vehicle operating cost. It performs well with respect to the first-best solution but, since it applies identically to all trips, it is not likely to be relevant in practice. By comparison to the no-toll situation, optimal congestion pricing reduces the radius of the city and the average travel distance by 34% and 15%, respectively.

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