The welfare impacts of alternative policies to address atmospheric pollution in urban road transport

In this paper we compare the effectiveness and welfare effects of alternative fuel efficiency, environmental and transport policies for a given urban area. The urban transport activities are represented as a set of interrelated markets, one for each mode of transport and type of vehicle, in peak and...

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Bibliographic Details
Published in:Regional science and urban economics 2001-07, Vol.31 (4), p.383-411
Main Authors: Proost, Stef, Van Dender, Kurt
Format: Article
Language:English
Subjects:
Air pollution
Alternative energy sources
Costs
Energy efficiency
Environmental policy
Equilibrium
Mass transit
Noise
Outdoor air quality
Pollution
Studies
Transport costs
Transport policy
Urban areas
Urban transport
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Summary:In this paper we compare the effectiveness and welfare effects of alternative fuel efficiency, environmental and transport policies for a given urban area. The urban transport activities are represented as a set of interrelated markets, one for each mode of transport and type of vehicle, in peak and in off-peak hours. For each market, four different marginal external costs are computed in the present equilibrium: air pollution, accidents, noise and congestion. The gap between marginal social costs and prices shows that congestion and unpaid parking are the dominant sources of inefficiencies. Air pollution costs are significant as well. The effects of a typical air quality policy (regulation of car emission technology) and two typical fuel-based policies (minimum fuel efficiency policy and fuel taxes) are compared with the effects of three alternative transport policies (full external cost pricing, cordon pricing, parking charges). Regulation of emission technology and of fuel efficiency beyond the 2005 levels do not lead to welfare gains, whereas transport pricing policies yield substantial gains for the urban area under study.
ISSN:0166-0462
1879-2308
DOI:10.1016/S0166-0462(00)00079-X