Experience with Measuring Equity and Efficiency: A Case from Oslo

Ramjerdi, Farideh; Østmoe, Knut; Minken, Harald

doi:10.1007/978-3-540-77150-0_7

“…The second case study is taken from the SPECTRUM project (24). The objective function described by Equation 3 is used to evaluate a reference scenario and a number of packages of instruments for Oslo.…”

Section: Second Case Study For Oslomentioning

confidence: 99%

Equity Measures and Their Performance in Transportation

Ramjerdi

¹

2006

Transportation Research Record: Journal of the Transportation R

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This paper aims at equity implications of transportation policies by using a range of equity measures in two case studies. Different measures of inequality embrace different normative judgments. Early studies have warned about placing too much trust in a single measure. One approach is to address equity considerations by assuming an explicit form of social welfare function and the choice of a desired inequality aversion parameter. A second approach is to apply an inequality measure to a given pair of distributions of a variable (e.g., income and accessibility) that changes as the result of a policy. The latter approach is adopted in this paper. A partial equilibrium model of transportation is used for the calculation of the changes in income, accessibility, and the net benefit for different social groups. This paper demonstrates the challenges that arise in addressing equity with a partial equilibrium model of transportation. An overview of some equity measures and their properties is provided first. The performances of these equity measures are evaluated for alternative road pricing schemes for Oslo, Norway. The paper illustrates that relating the equity objective to a predefined value of any of these measures is not desirable. It is difficult to make a judgment about the equity implication of a policy on the basis of a single measure and without a thorough examination of several measures. The paper also shows that the sizes of the equity measures are quite sensitive to the level of spatial disaggregation.

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“…Although revenue recycling is closely related to the various equity considerations of road pricing (Langmyhr, 1997), the distribution of the total gains among heterogeneous households in the context of a monocentric city is another future research challenge. See Ramjerdi et al (2008) for an empirical approach of this issue. 5 Note that the latter pattern may be reversed when income heterogeneity is introduced, with higher incomes locating further from the CBD (Brueckner et al, 1999).…”

mentioning

confidence: 99%

On revenue recycling and the welfare effects of second-best congestion pricing in a monocentric city

Tikoudis

¹

,

Verhoef

²

,

Ommeren

³

2015

Journal of Urban Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in _____________________________________________________________________________________Abstract This paper explores the interactions between congestion pricing and a tax-distorted labor market within a monocentric urban equilibrium model. We compute the efficiency gains of various second-best policies, i.e. combinations of toll schemes and revenue recycling programs, with a predetermined level of public revenue. We find that 35% of the space-varying road tax does not reflect marginal external congestion costs, but rather functions as a Ramsey-Mirrlees tax, i.e. an efficiency enhancing mechanism allowing space differentiation of the labor tax. Such a space-varying tax adds a quite different motivation to road pricing, since it can produce large welfare gains even in the absence of congestion. We show that both a cordon toll and a flat kilometer tax achieve over 80% of these gains when combined with specific types of revenue recycling, such as labor tax cuts or public transport subsidies. Sensitivity analysis shows that the optimal type of revenue recycling depends on the level of inefficiency in the provision of public transport prior to the introduction of congestion pricing.

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On Revenue Recycling and the Welfare Effects of Second-Best Congestion Pricing in a Monocentric City

Tikoudis

¹

,

Verhoef

²

,

Ommeren

³

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in _____________________________________________________________________________________Abstract This paper explores the interactions between congestion pricing and a tax-distorted labor market within a monocentric urban equilibrium model. We compute the efficiency gains of various second-best policies, i.e. combinations of toll schemes and revenue recycling programs, with a predetermined level of public revenue. We find that 35% of the space-varying road tax does not reflect marginal external congestion costs, but rather functions as a Ramsey-Mirrlees tax, i.e. an efficiency enhancing mechanism allowing space differentiation of the labor tax. Such a space-varying tax adds a quite different motivation to road pricing, since it can produce large welfare gains even in the absence of congestion. We show that both a cordon toll and a flat kilometer tax achieve over 80% of these gains when combined with specific types of revenue recycling, such as labor tax cuts or public transport subsidies. Sensitivity analysis shows that the optimal type of revenue recycling depends on the level of inefficiency in the provision of public transport prior to the introduction of congestion pricing.

show abstract

Experience with Measuring Equity and Efficiency: A Case from Oslo

Cited by 3 publications

References 7 publications

Equity Measures and Their Performance in Transportation

Equity Measures and Their Performance in Transportation

On revenue recycling and the welfare effects of second-best congestion pricing in a monocentric city

On Revenue Recycling and the Welfare Effects of Second-Best Congestion Pricing in a Monocentric City

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