Congestion Pricing with Tolls and Subsidies

by David Bernstein, Massachusetts Inst of Technology, Cambridge, United States,

Document Type: Proceeding Paper

Part of: Pacific Rim TransTech Conference—Volume II: International Ties, Management Systems, Propulsion Technology, Strategic Highway Research Program


Though economists have promoted congestion pricing for many years it has, in general, met with public opposition. It is usually argued that congestion pricing is unfair, discriminatory, regressive, coercive, and anti-business. In this paper we describe a method of implementing congestion pricing with tolls and subsidies that may overcome some of these objections. We also describe how it may be possible to implement such a program using existing technologies.

Subject Headings: Traffic congestion | Pricing | Tolls | Economic factors | Highway transportation | Highways and roads | Public policy | Public transportation

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