Would Congestion Pricing Harm the Poor? Do Free Roads Help the Poor?

Manville, Michael; Goldman, Emily O.

doi:10.1177/0739456x17696944

Cited by 10 publications

(7 citation statements)

References 49 publications

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“…Similarly, the finding that higher PM 2.5 concentrations are associated with higher likelihood of supporting congestion pricing and driving restrictions underscores environmental importance of these two policies. These environmental benefits are also likely to have positive distributional effects ( Manville & Goldman, 2018 ), as non-drivers and drivers alike will benefit from the improved air quality.…”

Section: Discussionmentioning

confidence: 99%

“…To date, most transportation policy literature has focused on the distributional impacts of congestion relief policies on low income drivers ( Anas & Lindsey, 2011 ; Taylor and Kalauskas, 2010 ). Importantly, recent research has expanded the view to consider how changes in air quality due to congestion relief policies disproportionately benefit low income households ( Manville and Goldman, 2018 ). Our results take concerns about equity in congestion relief policies one step further, highlighting the importance of policy design for public support.…”

Section: Discussionmentioning

confidence: 99%

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Support for market-based and command-and-control congestion relief policies in Latin American cities: Effects of mobility, environmental health, and city-level factors

Wang

Rodrı́guez

Mahendra

2021

Transportation Research Part A: Policy and Practice

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Public support for the implementation of congestion relief policies is critical for the policies’ technical and political success. To identify the personal, social, and city-level factors associated with higher acceptance towards such policies, this study uses a 2016 survey of 8178 residents from 11 cities across 10 Latin American countries collected by the Development Bank of Latin America ( Corporación Andina de Fomento or CAF). We examined support for two demand-side approaches to managing the traffic congestion externality: congestion pricing – a market-based approach, and driving restrictions or bans – a command-and-control approach. Logit regression models show that personal mobility such as owning or using a private vehicle during a respondent’s main commute trip are associated with decreased support, while higher congestion delay in one’s commute and having a young child recently diagnosed with respiratory problems increases support for either congestion relief policy. In addition, residents of cities with higher levels of median annual particulate matter and with prior experience with traffic bans expressed higher support for either policy. Residents of cities with higher income inequality supported only driving restrictions; while those of cities with higher GDP per capita had lower support only for congestion pricing. To improve the public acceptance of congestion relief policies in Latin America, policy makers could: (1) explicitly seek to mitigate the costs it brings on individuals by investing in substitutes like public transportation; (2) promote the personal and social environmental and health benefits; (3) consider beginning with temporary, pilot programs; and in the case of driving restrictions, (4) take into account city-specific conditions related to income inequality that may influence public support for the policies.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Support for market-based and command-and-control congestion relief policies in Latin American cities: Effects of mobility, environmental health, and city-level factors

Wang

Rodrı́guez

Mahendra

2021

Transportation Research Part A: Policy and Practice

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“…They find that drivers who paid the toll suffered an average annual loss (before accounting for the use of toll revenues) of 1840 Swedish krona (SEK) (EUR 181), whereas those who did not pay the toll gained an average of SEK 69 (EUR 7). 31 On average, drivers lost SEK 376 (EUR 37). 32 The average public transport user lost SEK 27 (EUR 2.7); much less than the average driver.…”

Section: Stockholmmentioning

confidence: 99%

“…The charge proved to be effective in alleviating both congestion and pollution, with vehicle entrances into the centre falling by 31%, emissions of particulate matter falling by 18%, and CO2 emissions falling by 35%. Beria (2016[62]) also 31 Using an exchange rate of EUR 0.0985 per SEK on October 7, 2021. Not adjusted for inflation.…”

Section: Milanmentioning

confidence: 99%

Distributional effects of urban transport policies to discourage car use

2023

OECD Environment Working Papers

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Distributional effects of urban transport policies to discourage car useA literature review Environment Working Paper No. 211 By Robin Lindsey (1), Ioannis Tikoudis (2), Katherine Hassett (2) (1) Professor, Sauder School of Business, University of British Columbia (2) Environment and Economy Integration Division, Environment Directorate, OECD OECD Working Papers should not be reported as representing the official views of the OECD or its member countries. The opinions expressed and arguments employed are those of the authors.

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“…A primary driving force behind the public opposition to congestion pricing has been the resultant inequity, e.g., high income users are likely to get the most benefit with shorter travel times while low income users suffer exceedingly large travel times since they avoid the high toll roads. Several empirical works have noted the regressive nature of congestion pricing [5,6] and a recent theoretical work [7] has characterized the influence of road tolls on the Gini coefficient, a measure of wealth inequality. Most notably, the latter paper [7] developed an Inequity Theorem for users travelling between the same origin-destination (O-D) pair, and proved that any form of road tolls increases wealth inequality.…”

Section: Introductionmentioning

confidence: 99%

When Efficiency meets Equity in Congestion Pricing and Revenue Refunding Schemes

Jalota¹,

Solovey²,

Gopalakrishnan³

et al. 2021

Preprint

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Congestion pricing has long been hailed as a means to mitigate traffic congestion; however, its practical adoption has been limited due to the resulting social inequity issue, e.g., low-income users are priced out off certain roads. This issue has spurred interest in the design of equitable mechanisms that aim to refund the collected toll revenues as lump-sum transfers to users. Although revenue refunding has been extensively studied for over three decades, there has been no thorough characterization of how such schemes can be designed to simultaneously achieve system efficiency and equity objectives.In this work, we bridge this gap through the study of congestion pricing and revenue refunding (CPRR) schemes in non-atomic congestion games. We first develop CPRR schemes, which in comparison to the untolled case, simultaneously (i) increase system efficiency and (ii) decrease wealth inequality, while being (iii) user-favorable: irrespective of their initial wealth or values-of-time (which may differ across users) users would experience a lower travel cost after the implementation of the proposed scheme. We then characterize the set of optimal user-favorable CPRR schemes that simultaneously maximize system efficiency and minimize wealth inequality. These results assume a well-studied behavior model of users minimizing a linear function of their travel times and tolls, without considering refunds. We also study a more complex behavior model wherein users are influenced by and react to the amount of refund that they receive. Although, in general, the two models can result in different outcomes in terms of system efficiency and wealth inequality, we establish that those outcomes coincide when the aforementioned optimal CPRR scheme is implemented. Overall, our work demonstrates that through appropriate refunding policies we can achieve system efficiency while reducing wealth inequality.

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Would Congestion Pricing Harm the Poor? Do Free Roads Help the Poor?

Cited by 10 publications

References 49 publications

Support for market-based and command-and-control congestion relief policies in Latin American cities: Effects of mobility, environmental health, and city-level factors

Support for market-based and command-and-control congestion relief policies in Latin American cities: Effects of mobility, environmental health, and city-level factors

Distributional effects of urban transport policies to discourage car use

When Efficiency meets Equity in Congestion Pricing and Revenue Refunding Schemes

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