Research On Road Congestion Pricing From Social Welfare Perspective

Recent years as an effective economic measure road congestion pricing has aroused significant concerns. Many cities are examing congestion pricing policies. From a welfare economic perspective, congestion pricing is viewed as a desirable policy per se, albeit one that faces significant political opposition. Within a standard welfare economic framework, this thesis provides both theoretical foundations and policy references.First the thesis explores how road congestion pricing internalizes congestion externalities and the mechanism of road tolls to change traffic demands. Then based on the goal of social welfare maximization and equity, analyzes road congestion pricing in depth. Concludes that although road pricing indeed increases total social welfare, with larger part of user's surplus transferring to operator's, user's welfare is in fact reduced. If some revenue redistributed to poor group, a strictly pareto-improving can be achieved, thus making it a win-win policy between users and operators. Analyzes the welfare and equity effects of different pricing according to different regional economic characteristics, believing that users in developed regions usually have high time value, low marginal value of monetary, and low price elasticity of demand; vice versa. Making different congestion pricing based on regional economic characteristics can promote both horizontal and vertical welfare and equity.Finally, in order to make sound policy proposals for congestion pricing based on similarities of economic development, the thesis selects a collection of indices and data from 13 big cities across the country, then makes fuzzy dynamic cluster analysis by finding fuzzy equivalent matrix. The paper proposes some suggestions in accordance with the results of cluster analysis. Refer to congestion pricing strategies if there exists in cities of the same kind; If not, similar cities should collaborate with each other to work out a solution and make estimations using exponent smooth forecast method; Making a reference to success experiences of congestion pricing from abroad may also be another way. As one of those ways that fight traffic congestion, however, congestion pricing should be combined with many other measures to manage traffic congestion systematically, thus realizing the goal of accessibility, mobility,and sustainability of urban transportation system and enhance social welfare.