2020/01/31 by Jun Yang, Avralt-Od Purevjav, Shanjun Li · 1 citation
Energy · Social Sciences · Economics, Econometrics and Finance · #Energy, Environment, and Transportation Policies #Transportation Planning and Optimization #Economic and Environmental Valuation
paper · doi:10.1257/pol.20170195
openalex publication_date 2020/01/31 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/30
Severe traffic congestion is ubiquitous in large urban centers. This paper provides the first causal estimate of the relationship between traffic density and speed and optimal congestion charges using real-time fine-scale traffic data in Beijing. The identification relies on plausibly exogenous variation in traffic density induced by Beijing’s driving restriction policy. Optimal congestion charges range from 5 to 39 cents per km depending on time and location. Road pricing would increase traffic speed by 11 percent within the city center and lead to an annual welfare gain of ¥1.5 billion from reduced congestion and revenue of ¥10.5 billion. (JEL H23, O18, P25, R41, R48)