Estimating Urban Road Congestion Charges

23 Pages Posted: 19 Feb 2002

See all articles by David M. G. Newbery

David M. G. Newbery

University of Cambridge - Department of Applied Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Georgina Santos

University of Cambridge - Department of Applied Economics

Date Written: January 2002

Abstract

Economists wishing to analyse road congestion and road pricing have usually relied on link-based speed-flow relationships. These may provide a poor description of urban congestion, which mainly arises from delays at intersections. Using the simulation model SATURN, we investigate the second-best proportional traffic reduction and find that linear speed-flow relations describe network flows quite well in eight English towns, though the predicted congestion costs and charges overstate those apparently required in our second best model. We then confront the results with feasible optimal cordon charges, and find them reasonably correlated, but imperfect predictors.

Keywords: Traffic congestion, road pricing, efficient charges, congestion tolls

JEL Classification: H11, H51, R41, R48

Suggested Citation

Newbery, David M. G. and Santos, Georgina, Estimating Urban Road Congestion Charges (January 2002). Available at SSRN: https://ssrn.com/abstract=301094

David M. G. Newbery (Contact Author)

University of Cambridge - Department of Applied Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DE
United Kingdom
+44 1223 335 246 (Phone)
+44 1223 335 299 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom
+44 1223 335 246/7 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Georgina Santos

University of Cambridge - Department of Applied Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DE
United Kingdom
+44 1223 335 284 (Phone)
+44 1223 335 299 (Fax)

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