Congestion Pricing: Long-Term Economic and Land-Use Effects

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Date

Sept. 15, 2006

Authors

Elena Safirova, Sebastien Houde, D. Lipman, Winston Harrington, and Andrew Baglino

Publication

Working Paper

Reading time

1 minute

We employ a spatially disaggregated general equilibrium model of a regional economy that incorporates decisions of residents, firms, and developers integrated with a spatially disaggregated strategic transportation planning (START) model that features mode, time period, and route choice to evaluate economic effects of congestion pricing. First, we evaluate the long-run effects of a road-pricing policy based on the integrated model of land use, strategic transport, and regional economy (LUSTRE) and compare them with the short-term effects obtained from the START model alone. We then look at distributional effects of the policy in question and point out differences and similarities in the short run versus the long run. Finally, we analyze the mechanisms at the source of the economic and land-use effects induced by the road-pricing policy.

Topics

Authors

Elena Safirova

Sebastien Houde

D. Lipman

Winston Harrington

Senior Fellow Emeritus

Winston Harrington

Andrew Baglino

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