The Welfare Effect of Road Congestion Pricing: Experimental Evidence and Equilibrium Implications
Nov 26, 2018 at 12:00PM - Nov 26, 2018 at 1:00PMAbout:
The textbook policy response to traffic externalities is congestion pricing. However, quantifying the welfare consequences of pricing policies requires detailed knowledge of commuter preferences and of the road technology. I study the peak-hour traffic congestion equilibrium using rich travel behavior data and a field experiment grounded in theory. Using a newly developed smartphone app, I collected a panel data set with precise GPS coordinates for over 100,000 commuter trips in Bangalore, India. To identify the key preference parameters in my model – the value of time spent driving...