Road Pricing and Users' Surplus


Paolo Ferrari

Document Type

Journal Article

Publication Date


Subject Area

operations - traffic, ridership - mode choice, policy - congestion, economics - pricing, place - urban, mode - bus


Value pricing (Road pricing), Urban transportation, Traffic congestion, Road pricing, Mode choice, Modal choice, Intracity transportation, Intracity bus transportation, Gridlock (Traffic), Economic analysis, Consumers surplus, Choice of transportation, Bus transit


This paper presents an analysis of the urban transport system conducted in order to verify the existence of situations in which road pricing could produce not only a reduction in congestion and pollution, but also an increase in users' surplus. The results obtained by using a theoretical model of the transport system for urban areas travelled by private vehicles and public transport buses show that the efficiency of road pricing as a means to enhance user surplus essentially depends on how much part of the cost borne by users of public transport is due to congestion and on the proportion of users who are captive to public transport.


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