Pricing, Capacity Choice and Financing in Tranportation Networks

J. Rouwendal, Erik Verhoef

Research output: Book/Report › Report › Academic

Abstract

This paper explores the interrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically investigates its ins and outs in a network environment and under various types of second-best regulation. The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint. It is for instance shown that application of the principle over an entire network may cause user prices to increase more strongly in initially mildly congested areas compared to heavily congested areas, and that a flat kilometre charge, provided accompanied with optimal capacity policies, may result in first-best efficiency gains
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Institute
Number of pages24
Publication statusPublished - 2003

Publication series

NameTinbergen Institute discussion paper
PublisherTinbergen Institute
No.TI 2003-027/3

Fingerprint

Efficiency gains
Ownership
Car
Financing
Charge
Pricing
Self-financing
Network model
Roads
Transportation networks
Network environment
Optimal capacity
Congestion pricing

Keywords

  • transport
  • prices
  • roads
  • models
  • financing

Cite this

Rouwendal, J., & Verhoef, E. (2003). Pricing, Capacity Choice and Financing in Tranportation Networks. (Tinbergen Institute discussion paper; No. TI 2003-027/3). Amsterdam: Tinbergen Institute.
Rouwendal, J. ; Verhoef, Erik. / Pricing, Capacity Choice and Financing in Tranportation Networks. Amsterdam : Tinbergen Institute, 2003. 24 p. (Tinbergen Institute discussion paper; TI 2003-027/3).
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Rouwendal, J & Verhoef, E 2003, Pricing, Capacity Choice and Financing in Tranportation Networks. Tinbergen Institute discussion paper, no. TI 2003-027/3, Tinbergen Institute, Amsterdam.

Pricing, Capacity Choice and Financing in Tranportation Networks. / Rouwendal, J.; Verhoef, Erik.

Amsterdam : Tinbergen Institute, 2003. 24 p. (Tinbergen Institute discussion paper; No. TI 2003-027/3).

Research output: Book/Report › Report › Academic

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AU - Rouwendal, J.

AU - Verhoef, Erik

PY - 2003

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N2 - This paper explores the interrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically investigates its ins and outs in a network environment and under various types of second-best regulation. The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint. It is for instance shown that application of the principle over an entire network may cause user prices to increase more strongly in initially mildly congested areas compared to heavily congested areas, and that a flat kilometre charge, provided accompanied with optimal capacity policies, may result in first-best efficiency gains

AB - This paper explores the interrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically investigates its ins and outs in a network environment and under various types of second-best regulation. The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint. It is for instance shown that application of the principle over an entire network may cause user prices to increase more strongly in initially mildly congested areas compared to heavily congested areas, and that a flat kilometre charge, provided accompanied with optimal capacity policies, may result in first-best efficiency gains

KW - transport

KW - prijzen

KW - wegen

KW - modellen

KW - financieren

KW - transport

KW - prices

KW - roads

KW - models

KW - financing

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Rouwendal J, Verhoef E. Pricing, Capacity Choice and Financing in Tranportation Networks. Amsterdam: Tinbergen Institute, 2003. 24 p. (Tinbergen Institute discussion paper; TI 2003-027/3).

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