Abstract
We analyze the efficiency of congestion pricings and transit subsidies in the spatial micro-economic model based on a general equilibrium environment. In this setting, we decompose the total welfare change into component factors and identify the reason of the change in the efficiency caused by policy instruments; these component factors are divided into indirect factors and direct factors including of origin-destination and mode choices. We set up the model as adding mode choice to the standard format in the fashion of Anas and Kim (1996) and extend the methodology proposed by Yu and Rhee (2011) and Rhee (2012) for deriving theoretical and analytical solution. Most of welfare gain comes from the modal shift from car to bus. The relative efficiency of subsidies in relation to the first-best pricing is lower than it of congestion pricings although the change in bus share by subsidies is similar to it by congestion pricing. Subsidies give rise to more modal shift from a car to a bus for long-distance commuting than it caused by congestion pricings. As the increase of bus share for long-distance commuting leads to the increase of cross-commuters passing through CBD, the welfare gain by subsidies is lower than it by congestion pricings.
| Translated title of the contribution | An Analysis of the Causes of the Welfare Gain Achieved by Congestion Pricing and Transit Subsidies |
|---|---|
| Original language | Korean |
| Pages (from-to) | 74-85 |
| Number of pages | 12 |
| Journal | 대한교통학회지 |
| Volume | 31 |
| Issue number | 3 |
| DOIs | |
| State | Published - Jun 2013 |