Road pricing with optimal mass transit |
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| Affiliation: | 1. University of Cologne, Institute of Zoology, Heisenberg Research Group of Computational Neuroscience – Modeling Neural Network Function, Zülpicher Str. 47b, 50674 Cologne, Germany;2. Research Centre Jülich, Institute of Neuroscience and Medicine (INM-3), Cognitive Neuroscience, 52425 Jülich, Germany;3. University of Cologne, Department of Neurology, Medical Faculty and University Hospital Cologne, Kerpener Str. 62, 50937 Cologne, Germany;1. College of Geo-exploration Science and Technology, Jilin University, Changchun 130061, China;2. College of Earth Sciences, Jilin University, Changchun 130061, China;3. College of Geographical Sciences, Northeast Normal University, Changchun 130024, China;4. Key Laboratory of Mineral Resources Evaluation in Northeast Asia, Ministry of Natural Resources of China, Changchun 130026, Jilin, China;1. Virginia Tech, Department of Agricultural and Applied Economics, 317 Hutcheson Hall, 250 Drillfield Drive, Blacksburg, VA 24061, United States;2. Virginia Tech, Department of Agricultural and Applied Economics, 316 Hutcheson Hall, 250 Drillfield Drive, Blacksburg, VA 24061, United States;1. INRA-UR1303 ALISS, 65 boulevard de Brandebourg, 94205 Ivry-sur-Seine, France;2. CREST, Ecole Polytechnique, route de saclay, 91128 Palaiseau, France |
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| Abstract: | This paper considers the second-best policy problem that arises when auto travel is priced below its marginal cost and there is a substitute mass transit mode. Using analytical methods, a global comparison is made between the second-best levels of transit service and the fare and their first-best levels. The fact that the results are global permits an application to road pricing not possible with the local results of Kraus (2003). |
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