Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France

André de Palma (1, 2) , Moez Kilani (3) , Michel de Lara (3) , Serge Piperno (3)

1 X-DEP-ECO - Département d'Économie de l'École Polytechnique
2 ENS Cachan - École normale supérieure - Cachan
3 CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique

We propose a method to compute an equilibrium solution for the monocentric city model with traffic congestion, and to quantify the im- pact of cordon tolls on social surplus. The focus of this paper is on the comparison of road pricing of one and two cordons, with the no toll and first-best situations as benchmarks. We find that a one-cordon toll yields a social efficiency of 63% with respect to first-best, and that an optimal two-cordon toll increases the efficiency to 73%. Both policies have a pos- itive impact on CO2 emissions because they reduce the average length of trips and reduce the road size.

Mots clés: Monocentric model; Cordon toll; Acceptability of road pricing

Domaines: Gestion et management; Economies et finances

André de Palma, Moez Kilani, Michel de Lara, Serge Piperno. Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France. Recherches Economiques de Louvain - Louvain economic review, 2011, 77 (2-3), pp.105-124. ⟨10.3917/rel.772.0105⟩. ⟨hal-00348437⟩