We consider commuting in urban areas with bottleneck congestion. User cost is the sum of travel time cost and early/late schedule delay costs. With one bottleneck, an efficient time-varying toll eliminates queuing. However, tolls are often not acceptable, due to political opposition. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is zero when there is queuing and eliminates queuing when it is non-zero. Within certain limits, inability to charge some travelers for parking does not reduce the potential welfare gain. Commuters who cannot be charged, travel when there is queuing.
FEB202012
We will make you pay
Spatial Economics Seminar Amsterdam
- Speaker(s)
- Mogens Fosgerau (Technical University of Denmark)
- Date
- 2012-02-20
- Location
- Amsterdam