Scandinavian Working Papers in Business Administration
Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science
No 2014/42: Modelling social welfare effects of relocation and road pricing
Sahar Babri (), David Philip McArthur (), Inge Thorsen () and Jan Ubøe ()
Additional contact information
Sahar Babri: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
David Philip McArthur: Urban Big Data Centre, University of Glasgow, Postal: University of Glasgow, Urban Big Data Centre, 7 Lilybank Gardens, Glasgow, G12 8RZ, UK
Inge Thorsen: Stord/Haugesund University College, Postal: Stord/Haugesund University College, Bjørnsonsgate 45, 5528 Haugesund, Norway
Jan Ubøe: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Abstract: Road pricing is a popular congestion reduction strategy. However, there may be wider impacts associated with a road toll. We consider a factor which is sometimes overlooked, namely that workers and firms may choose to change location in response to changes in the travel costs. A spatial equilibrium model is used to analyse suboptimalities in road pricing which may occur if relocations are ignored. We show that such suboptimalities can be substantial. The advantage of the model we use over many existing approaches is that it is easy to implement, and requires very little data.
Keywords: Relocation; Road pricing; Congestion; Spatial equilibrium modelling; LUTI modelling
31 pages, December 18, 2014
Full text files
227761
- Norwegian School of Economics, Department of Business and Management Science
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Stein Fossen ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:nhhfms:2014_042This page generated on 2024-11-12 04:36:04.