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Long-Run Effects of Partial Tolling Schemes

The Review of Network Economics

Vol. 3, Issue 4 - December 2004, pp 392-400

  Edmond L. Douville
School of Business and Economics, Indiana University Northwest
E-mail: [email protected]

  The objective of this paper is to make numerical estimates of the effects of various partial tolling schemes in a long-run setting where road capacities are harmonized with the tolling plan. The results demonstrate that different tolling schemes bring about different sets of equilibrium outcomes in respect to optimal investment in road capacity, travel speeds, numbers of road users, and the division of travel between peak and off-peak periods. These differential effects are relevant where, for political or equity reasons, simple maximization of efficiency may not be feasible or desired. The model presented provides a toll for evaluating these trade-offs.

Keywords: Road pricing, tolling schemes, road capacity

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