Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France

Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France

[SHS:GESTION] Humanities and Social Sciences/Business administration

[SHS:ECO] Humanities and Social Sciences/Economies and finances

Monocentric model

Cordon toll

Acceptability of road pricing

We propose a method to compute an equilibrium solution for the monocentric city model with traffic congestion, and to quantify the im- pact of cordon tolls on social surplus. The focus of this paper is on the comparison of road pricing of one and two cordons, with the no toll and first-best situations as benchmarks. We find that a one-cordon toll yields a social efficiency of 63% with respect to first-best, and that an optimal two-cordon toll increases the efficiency to 73%. Both policies have a pos- itive impact on CO2 emissions because they reduce the average length of trips and reduce the road size.

De Palma, André

Kilani, Moez

De Lara, Michel

Piperno, Serge

Recherches Economiques de Louvain

2011

ENG

article in peer-reviewed journal

http://hal.archives-ouvertes.fr/hal-00348437

DOI: 10.3917/rel.772.0105

http://hal.archives-ouvertes.fr/docs/00/34/84/37/PDF/2008-13_cahier_de_recherche.pdf