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Sustainability 2016, 8(3), 265;

Next Generations of Road Pricing: Social Welfare Enhancing

Post-doctoral Research Associate, School of Civil and Environmental Engineering, Cornell University, 462 Hollister Hall, Ithaca, NY 14853, USA
Academic Editor: Tan Yigitcanlar
Received: 11 December 2015 / Revised: 6 March 2016 / Accepted: 7 March 2016 / Published: 11 March 2016
(This article belongs to the Section Sustainable Urban and Rural Development)
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This paper offers a broad overview of road pricing from a social welfare perspective. I first examine two common objectives of road pricing: congestion management and profit making. My goal is to provide a guideline explaining how to promote a social-welfare-enhancing road pricing scheme. To this end, we should: (i) consider and improve public transportation systems by providing more environment-friendly transport options; (ii) include tolling profits in our welfare analysis (as opposed to what economists suggest) since residents are the real owners of roads not users, and since some users are from outside the region and so might not be excluded from analysis; and (iii) search for a holistic approach that takes into account system-wide impacts, disutility to users who change their travel behavior (i.e., switch to public transportation, shift their travel, or do not travel at all), and the impacts on land use, employment, and residents. View Full-Text
Keywords: road pricing; congestion pricing; social welfare; profit maximization; optimal tolls road pricing; congestion pricing; social welfare; profit maximization; optimal tolls

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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Rouhani, O.M. Next Generations of Road Pricing: Social Welfare Enhancing. Sustainability 2016, 8, 265.

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