Second-Best Congestion Pricing: The Case of an Untolled Alternative

Erik T. Verhoef · Peter J. Nijkamp · Piet Rietveld

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Transportation Planning and Optimization Traffic control and management Transport and Economic Policies

Abstract

Abstract This paper deals with second-best one-route congestion pricing in case of an untolled alternative. Using a two-link network simulation model, the effects of various demand and cost parameters on the relative efficiency of one-route tolling are analyzed. It is investigated whether the existence of costs of congestion charging may be a reason for one-route tolling to be more “overall efficient” than two-route tolling. Finally, the efficiency of revenue-maximizing one-route and two-route tolling is discussed.

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