EVALUATING CONGESTION PRICING IMPACTS UNDER PEAK SPREADING - Download this document for free, or read online. Document in PDF available to download.

The paper involves an econometric analysis of congestion pricing at the bridges and tunnelsoperated by the Port Authority of New York and New Jersey (PANYNJ). Using a fixed effectsmodel, we pool all facilities to evaluate the impacts of the congestion pricing structure in effectsince March 2001. We find significant impacts for autos, but need to confront a counter-intuitivefinding: cash paying vehicles, who do not benefits from off-peak discounts, are also estimated tobe impacted. Using a unique data set on queueing at the facilities, we are able to control forpeak spreading, and find the pricing effect greatly reduced. By further controlling forendogeneity with an instrumental variables estimator, we find that the price effect on cash payingvehicles entirely disappears.These results confirm the hypothesis that congestion pricing has had an important impact onconditions at the PANYNJ facilities. Taking a weighted average of the changes by crossing forautos, it is estimated that value pricing led to a shift in EZ-Pass-using vehicles from the morningpeak equal to 6.5% and in the evening peak 2.2%. Note that this result is heavily influenced bypatterns at the George Washington Bridge, which accounts for over 50 percent of EZ-Pass-usingautos.

Subject(s): Financial Economics

Research and Development/Tech Change/Emerging Technologies

Research Methods/ Statistical Methods

Issue Date: 2007-03

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/207932

Total Pages: 18

Record appears in: Transportation Research Forum > 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007

Author: Wolff, Carolyn ; Vilain, Pierre

Source: http://ageconsearch.umn.edu/record/207932?ln=en

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