Equity and Congestion Pricing: A Review of the Evidence

Abstract

This report investigates whether or congestion pricing is equitable. It looks at the four ideas of equity that are commonly discussed in literature: 1. group members of the same group are treated the same (horizontal equity); 2. group members of different groups received different treatment (vertical equity); 3. individuals who contribute to a social cost pay that cost (cost principle); and 4. individuals who get social benefits pay for those benefits (benefit principle). The authors decide that there is not one particular and correct answer to the question of equity and congestion pricing, since congestion pricing might fare well under some definitions of equity and not under others. The authors review literature on the issues and lay out the various arguments.

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