The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation across the entire country for just 9 euros per...

I study the effects of London England’s Congestion Charge on regional traffic, commuting, and economic activity’s spatial distribution. In 2003, London began tolling drivers to enter its central business district on workdays and this policy immediately reduced downtown traffic. I measure...

The development of toll roads provides a number of improved services to the road users, connectivity, and their existence can promote the equitable development of a region. The use of toll roads has a variety of impacts on economic issues. The quality of pavement gradually declines along with...

This paper uses a novel GPS-coded dataset for more than three million car trips in the four largest German cities to measure the efficiency losses from using uniform fuel taxes as a second-best optimal tax to reduce traffic congestion. We estimate the short-run price elasticity of...

Given a capacity function, an increase in demand will lead to a higher equilibrium price. Some economists take the capacity equilibrium for congestion. This paper corrects such an understanding and shows that congestion should only mean excess demand. The correct understanding should lead to...