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An Analysis of Various Policy Instruments to Reduce Congestion, Fuel Consumption and CO2 Emissions in Beijing

Anas, Alex; Timilsina, Govinda R.; Zheng, Siqi
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
36.91%
Using a nested multinomial logit model of car ownership and personal travel in Beijing circa 2005, this paper compares the effectiveness of different policy instruments to reduce traffic congestion and CO2 emissions. The study shows that a congestion toll is more efficient than a fuel tax in reducing traffic congestion, whereas a fuel tax is more effective as a policy instrument for reducing gasoline consumption and emissions. An improvement in car efficiency would also reduce congestion, fuel consumption, and CO2 emissions significantly; however, this policy benefits only richer households that own a car. Low-income households do better under the fuel tax policy than under the efficiency improvement and congestion toll policies. The congestion toll and fuel tax require the travel cost per mile to more than triple. The responsiveness of aggregate fuel and CO2 are, approximately, a 1 percent drop for each 10 percent rise in the money cost of a car trip.

Pricing Externalities from Passenger Transportation in Mexico City

Parry, Ian W. H.; Timilsina, Govinda R.
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
47.22%
The Mexico City Metropolitan Area has been suffering severely from transportation externalities such as accidents, air pollution, and traffic congestion. This study examines pricing instruments to reduce these externalities using an analytical and numerical model. The study shows that the optimal levels of a gasoline tax and a congestion toll on automobiles could generate social benefits, measured in terms of welfare gain, of US$132 and US$109 per capita, respectively, through the reduction of externalities. The largest component of the welfare gains comes from reduced congestion, followed by local air pollution reduction. The optimal toll and tax would, however, double the cost of driving and could be politically sensitive. Still, more than half of those welfare gains could be obtained through a more modest tax or toll, equivalent to $1 per gallon of gasoline. The welfare gains from reforming the pricing of public transportation are small relative to those from reforming the taxation of automobiles. Although the choice among travel modes depends on specific circumstances...

Impacts of Policy Instruments to Reduce Congestion and Emissions from Urban Transportation : The Case of São Paulo, Brazil

Anas, Alex; Timilsina, Govinda R.
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
47.15%
This study examines impacts on net social benefits or economic welfare of alternative policy instruments for reducing traffic congestion and atmospheric emissions in São Paulo, Brazil. The study shows that expanding road networks, subsidizing public transit, and improving automobile fuel economy may not be as effective as suggested by economic theories because these policies could cause significant rebound effects. Although pricing instruments such as congestion tolls and fuel taxes would certainly reduce congestion and emissions, the optimal level of these instruments would steeply increase the monetary cost of travel per trip and are therefore politically difficult to implement. However, a noticeable finding is that even smaller tolls, which are more likely to be politically acceptable, have substantial benefits in terms of reducing congestion and emissions. Among the various policy instruments examined in the study, the most socially preferable policy option for São Paulo would be to introduce a mix of congestion toll and fuel taxes on automobiles and use the revenues to improve public transit systems.

Fiscal Policy Instruments for Reducing Congestion and Atmospheric Emissions in the Transport Sector : A Review

Timilsina, Govinda R.; Dulal, Hari B.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
47.1%
This paper reviews the literature on the fiscal policy instruments commonly used to reduce transport sector externalities. The findings show that congestion charges would reduce vehicle traffic by 9 to 12 percent and significantly improve environmental quality. The vehicle tax literature suggests that every 1 percent increase in vehicle taxes would reduce vehicle miles by 0.22 to 0.45 percent and CO2 emissions by 0.19 percent. The fuel tax is the most common fiscal policy instrument; however its primary objective is to raise government revenues rather than to reduce emissions and traffic congestion. Although subsidizing public transportation is a common practice, reducing emissions has not been the primary objective of such subsidies. Nevertheless, it is shown that transport sector emissions would be higher in the absence of both public transportation subsidies and fuel taxation. Subsidies are also the main policy tool for the promotion of clean fuels and vehicles. Although some studies are very critical of biofuel subsidies...

Transportation Fuel Use, Technology and Standards : The Role of Credibility and Expectations

Eskeland, Gunnar S.; Mideksa, Torben K.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
26.72%
There is a debate among policy analysts about whether fuel taxes alone are the most effective policy to reduce fuel use by motorists, or whether to also use mandatory standards for fuel efficiency. A problem with a policy mandating fuel economy standards is the "rebound effect," whereby owners with more efficient vehicles increase vehicle usage. If an important part of negative externalities from transport are associated with vehicle kilometers (accidents, congestion, road wear) rather than fuel consumption, the rebound effect increases negative externalities. Taxes and standards should be mutually supportive because fuel taxes often meet political resistance. Over time, fuel efficiency standards can reduce political resistance to fuel taxes. Thus, by raising fuel efficiency standards now, politicians may be able to pursue higher fuel tax paths in the future. Another argument in support of fuel efficiency standards and similar policies is that standards to a greater extent than taxes can be announced in advance and still be credible and change the behavior of inventors...

Demand Side Instruments to Reduce Road Transportation Externalities in the Greater Cairo Metropolitan Area

Parry, Ian W.H.; Timilsina, Govinda R.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
37.22%
Economically efficient prices for the passenger transportation system in the Greater Cairo Metropolitan Area would account for broader societal costs of traffic congestion and accidents, and local and global pollution. A $2.20 per gallon gasoline tax (2006 US$) would be economically efficient, compared with the current subsidy of $1.20 per gallon. Removal of the existing subsidy alone would achieve about three-quarters of the net benefits from subsidy elimination and the tax. Per-mile tolls could target congestion and accident externalities more efficiently than fuel taxes, although they are not practical at present. A combination of $0.80 per gallon gasoline tax to address pollution (versus $2.20 without tolls), and $0.12 and $0.19 tolls per vehicle mile on automobiles and microbuses, respectively, to address traffic congestion and accident externalities (versus $0.22 without fuel taxes) would be most efficient. Current public bus and rail subsidies are relatively close to efficient levels in the absence of such policies; however, if automobile and microbus externalities were fully addressed through more efficient pricing, optimal subsides to public transit would be smaller than current levels.

Urban Road Transportation Externalities : Costs and Choice of Policy Instruments

Timilsina, Govinda R.; Dulal, Hari B.
Fonte: World Bank Publicador: World Bank
Tipo: Artigo de Revista Científica
EN_US
Relevância na Pesquisa
46.8%
Urban transportation externalities are a key development challenge. Based on the existing literature, the authors illustrate the magnitudes of various external costs, review response policies, and measure and discuss their selection, particularly focusing on the context of developing countries. They find that regulatory policy instruments aimed at reducing local air pollution have been introduced in most countries in the world. On the other hand, fiscal policy instruments aimed at reducing congestion or greenhouse gas emissions are limited mainly to industrialized economies. Although traditional fiscal instruments, such as fuel taxes and subsidies, are normally introduced for other purposes, they can also help to reduce externalities. Land-use or urban planning, and infrastructure investment, could also contribute to reducing externalities; but they are expensive and play a small role in already developed megacities. The main factors that influence the choice of policy instruments include economic efficiency, equity, country or city specific priority, and institutional capacity for implementation. Multiple policy options need to be used simultaneously to reduce effectively the different externalities arising from urban road transportation because most policy options are not mutually exclusive.

Controlling Greenhouse Gas Emissions Generated by the Transport Sector in ECA : Policy Options

Monsalve, Carolina
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
26.84%
Greenhouse gas emissions (GHG) generated from transport are among the fastest growing in Europe and in the Europe and Central Asia (ECA) region, posing a challenge in creating a low-carbon future, as economic development has been paralleled with a modal share increasingly dominated by roads.1 This modal shift, as in the European Union (EU), has been driven by a number of factors, including growing affluence, suburbanization, and falling land use densities in urban areas, which have translated into more widespread vehicle ownership, increasing trip numbers and lengths, while reducing the financial viability of public transport and non-motorized transport. This paper begins by reviewing recent trends in transport and GHG emission trends in the ECA region, using trends in the EU-15 and EU-27 as comparators.8 Subsequently, it will provide an overview of climate friendly transport policies for the road, rail, and air transport modes, before presenting some land transport success stories and then turning to a discussion on how to use revenues generated from pricing policy instruments. The objective is to provide a menu of policy options to improve the functioning of the transport sector in ECA...

Demand-Side Instruments to Reduce Road Transportation Externalities in the Greater Cairo Metropolitan Area

Parry, Ian W.H.; Timilsina, Govinda R.
Fonte: Taylor and Francis Publicador: Taylor and Francis
Tipo: Artigo de Revista Científica
EN_US
Relevância na Pesquisa
36.83%
We estimate efficient prices for passenger transportation in Greater Cairo to address externalities from local pollution, greenhouse gases, traffic congestion, and traffic accidents. An estimated $2.20 per gallon gasoline tax (2006 US$) would be economically efficient, compared with the current subsidy of $1.20 per gallon. Per-mile tolls could target congestion and accident externalities more efficiently than fuel taxes, however. Most efficient is combining a gasoline tax of $0.80 per gallon with per-mile tolls of $0.12 for autos and $0.19 for microbuses. Current public bus and rail fare subsidies are close to efficient levels in the absence of such policies.

Transport Policies and Development

Berg, Claudia N.; Deichmann, Uwe; Liu, Yishen; Selod, Harris
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
26.9%
This survey reviews the current state of the economic literature, assessing the impact of transport policies on growth, inclusion, and sustainability in a developing country context. The findings are summarized and methodologies are critically assessed, especially those dealing with endogeneity issues in empirical studies. The specific implementation challenges of transport policies in developing countries are discussed.

Jobs and Land Use within Cities; A Survey of Theory, Evidence, and Policy

Goswami, Arti Grover; Lall, Somik V.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Working Paper; Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
37.15%
Over the last century, the urban spatial structure of cities has transformed dramatically from the traditional monocentric configuration to varying forms of decentralized organization. This paper reviews the theory and empirical evidence to understand the urban morphology of jobs and land use within a city. This survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers has been accompanied by structural changes in the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing the associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments that are useful in closing the gap between equilibrium urban spatial structure and the optimal outcome.

Urban Road Transportation Externalities : Costs and Choice of Policy Instruments

Timilsina, Govinda R.; Dulal, Hari B.
Fonte: World Bank Publicador: World Bank
Tipo: Journal Article; Journal Article
EN_US
Relevância na Pesquisa
46.8%
Urban transportation externalities are a key development challenge. Based on the existing literature, the authors illustrate the magnitudes of various external costs, review response policies, and measure and discuss their selection, particularly focusing on the context of developing countries. They find that regulatory policy instruments aimed at reducing local air pollution have been introduced in most countries in the world. On the other hand, fiscal policy instruments aimed at reducing congestion or greenhouse gas emissions are limited mainly to industrialized economies. Although traditional fiscal instruments, such as fuel taxes and subsidies, are normally introduced for other purposes, they can also help to reduce externalities. Land-use or urban planning, and infrastructure investment, could also contribute to reducing externalities; but they are expensive and play a small role in already developed megacities. The main factors that influence the choice of policy instruments include economic efficiency, equity, country or city specific priority, and institutional capacity for implementation. Multiple policy options need to be used simultaneously to reduce effectively the different externalities arising from urban road transportation because most policy options are not mutually exclusive.

A Review of Regulatory Instruments to Control Environmental Externalities from the Transport Sector

Timilsina, Govinda R.; Dulal, Hari B.
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
36.65%
This study reviews regulatory instruments designed to reduce environmental externalities from the transport sector. The study finds that the main regulatory instruments used in practice are fuel economy standards, vehicle emission standards, and fuel quality standards. Although industrialized countries have introduced all three standards with strong enforcement mechanisms, most developing countries have yet to introduce fuel economy standards. The emission standards introduced by many developing countries to control local air pollutants follow either the European Union or United States standards. Fuel quality standards, particularly for gasoline and diesel, have been introduced in many countries mandating 2 to 10 percent blending of biofuels, 10 to 50 times reduction of sulfur from 1996 levels, and banning lead contents. Although inspection and maintenance programs are in place in both industrialized and developing countries to enforce regulatory standards, these programs have faced several challenges in developing countries due to a lack of resources. The study also highlights several factors affecting the selection of regulatory instruments...

Converting Land into Affordable Housing Floor Space

Bertaud, Alain
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
26.94%
Cities emerge from the spatial concentration of people and economic activities. But spatial concentration is not enough; the economic viability of cities depends on people, ideas, and goods to move rapidly across the urban area. This constant movement within dense cities creates wealth but also various degrees of unpleasantness and misery that economists call negative externalities, such as congestion, pollution, and environmental degradation. In addition, the poorest inhabitants of many cities are often unable to afford a minimum-size dwelling with safe water and sanitation, as if the wealth created by cities was part of a zero-sum game where the poor will be at the losing end. The main challenge for urban planners and economists is reducing cities' negative externalities without destroying the wealth created by spatial concentration. To do that, they must plan and design infrastructure and regulations while leaving intact the self-organizing created by land and labor markets. The balance between letting markets work and correcting market externalities through infrastructure investment and regulation is difficult to achieve. Too often...

Converting Land into Affordable Housing Floor Space

Bertaud, Alain
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
26.94%
Cities emerge from the spatial concentration of people and economic activities. But spatial concentration is not enough; the economic viability of cities depends on people, ideas, and goods to move rapidly across the urban area. This constant movement within dense cities creates wealth but also various degrees of unpleasantness and misery that economists call negative externalities, such as congestion, pollution, and environmental degradation. In addition, the poorest inhabitants of many cities are often unable to afford a minimum-size dwelling with safe water and sanitation, as if the wealth created by cities was part of a zero-sum game where the poor will be at the losing end. The main challenge for urban planners and economists is reducing cities' negative externalities without destroying the wealth created by spatial concentration. To do that, they must plan and design infrastructure and regulations while leaving intact the self-organizing created by land and labor markets. The balance between letting markets work and correcting market externalities through infrastructure investment and regulation is difficult to achieve. Too often...

An integrated behavioral model of the land-use and transport systems with network congestion and location externalities

Cortés, Cristián E.; Cominetti Cotti-Cometti, Roberto; Martínez, Francisco; Briceño, Luis; Bravo, Mario
Fonte: ELSEVIER Publicador: ELSEVIER
Tipo: Artículo de revista
EN
Relevância na Pesquisa
36.83%
The agents’ decisions, from their residential location to their members’ trip choices through the network, are jointly analyzed as an integrated long term equilibrium in which the location, travel decisions, and route choices are represented by logit or entropy models. In this approach, consumers optimize their combined residence and transport options represented as paths in an extended network built by connecting the transport sub-network to a fictitious sub-network that represents land-use and transport demand options. We model a static land-use and transport equilibrium by considering road congestion and location externalities. The latter include trip destination choices based on land-use attractions, as well as endogenous neighborhood characteristics that determine residential choices and segregation phenomena. The model can deal with heterogeneous populations and locations as well as multiple trip purposes, though it assumes only private transport modes. In a previous paper we studied the case with road congestion externalities only, characterizing equilibria by a strictly convex and coercive unconstrained minimization problem. This characterization fails for more general externalities, so we restate the model as a fixed-point problem...

Multimodal pricing and optimal design of urban public transport: The interplay between traffic congestion and bus crowding

Hensher, David A.; Rose, John M.; Tirachini Hernández, Alejandro Andrés
Fonte: Elsevier Publicador: Elsevier
Tipo: Artículo de revista
EN
Relevância na Pesquisa
26.82%
Artículo de publicación ISI; The interplay between congestion and crowding externalities in the design of urban bus systems is identified and analysed. A multimodal social welfare maximisation model with spatially disaggregated demand is developed, in which users choose between travelling by bus, car or walking in a transport corridor. Optimisation variables are bus fare, congestion toll, bus frequency, bus size, fare collection system, bus boarding policy and the number of seats inside buses. We find that optimal bus frequency results from a trade-off between the level of congestion inside buses, i.e., passengers’ crowding, and the level of congestion outside buses, i.e., the effect of frequency on slowing down both buses and cars in mixed-traffic roads. A numerical application shows that optimal frequency is quite sensitive to the assumptions on crowding costs, impact of buses on traffic congestion, and overall congestion level. If crowding matters to users, buses should have as many seats as possible, up to a minimum area that must be left free of seats. If for any other reason planners decide to have buses with fewer seats than optimal (e.g., to increase bus capacity), frequency should be increased to compensate for the discomfort imposed on public transport users. Finally...

Pricing and Network Externalities in Peer-to-Peer Communications Networks (Draft)

Chandan, Sam; Hogendorn, Christiaan
Fonte: Universidade Cornell Publicador: Universidade Cornell
Tipo: Artigo de Revista Científica
Relevância na Pesquisa
36.83%
This paper analyzes the pricing of transit traffic in wireless peer-to-peer networks using the concepts of direct and indirect network externalities. We first establish that without any pricing mechanism, congestion externalities overwhelm other network effects in a wireless data network. We show that peering technology will mitigate the congestion and allow users to take advantage of more the positive network externalities. However, without pricing, the peering equilibrium breaks down just like a bucket brigade made up of free-riding agents. With pricing and perfect competition, a peering equilibrium is possible and allows many more users on the network at the same time. However, the congestion externality is still a problem, so peering organized through a club may be the best solution.; Comment: 29th TPRC Conference, 2001

Too much of a good thing: endogenous business cycles generated by bounded technological progress

Gomes, O.
Fonte: Elsevier Science Publicador: Elsevier Science
Tipo: Artigo de Revista Científica
Publicado em //2008 ENG
Relevância na Pesquisa
36.45%
WOS:000258805900010 (Nº de Acesso Web of Science); Following Jones and Williams [Jones, C.I., Williams, J., 2000. Too much of a good thing? The economics of investment in R&D. Journal of Economic Growth vol. 5 (no. 1), 65-85], we assume that R&D is simultaneously subject to positive and to negative external effects (e.g., the non-rival nature of technology conflicts with congestion externalities). This observation allows to conceive an economy where two R&D sectors evolve without departing significantly from each other in terms of their productive results (society tends to penalize imbalances in technical progress, making negative external effects to appear associated to a sector when this outstands relatively to the other sector, in turn, will be subject to positive externalities that reflect a catching up effect). The proposed framework, when associated to a growth setup, is able to replicate the existence of endogenous fluctuations and, therefore, it intends to be a contribution to the literature on endogenous business cycles.

A demand-based management option to address boat congestion at the Sundays River Estuary, Eastern Cape, South Africa

Lee,Deborah E; Du Preez,Mario
Fonte: Water SA Publicador: Water SA
Tipo: Artigo de Revista Científica Formato: text/html
Publicado em 01/07/2015 EN
Relevância na Pesquisa
36.5%
The Sundays River Estuary situated in the Eastern Cape is an example of a South African Estuary experiencing congestion externalities, mainly vis-à-vis motorised boat use. This paper employs a choice model to estimate people's preferences for less boat congestion on the Sundays River Estuary. The results show that visitors to the estuary are willing to trade off a levy of ZAR 35/a (in addition to what they already pay) for a reduction of boat congestion during peak periods (only). This paper proposes that this amount be set as a user charge to manage excess recreational boat use.