| Popis: |
This chapter clarifies a mechanism among all the related distortions caused by not only traffic congestion but also cordon pricing and land use regulation themselves, in a continuous space. From the mechanism, we derive some important theoretical properties of optimal regulation and cordon pricing, which are different from current understanding. In a cordon pricing scheme, a vehicle is charged a fixed toll when it passes a specified cordon line in the inbound and/or outbound direction. Cordon pricing cannot generally correct negative externality completely, unlike the first-best congestion pricing. In addition, it is not an easy task for governments to rationally determine the toll rate and the location of the cordon line because of the need to take account of the changes in distortions in the related market. Land use regulations, which can control population density, are also effective against urban externalities including traffic congestion, as we have shown in the previous chapters. An important point is that both cordon pricing and land use regulations are second-best policies and, therefore, both can be imposed simultaneously to increase the welfare. |
