Wednesday, December 7th, 2016 8:51 am

Congestion Pricing

In general, using more congestion charges in crowded transportation networks — such as higher tolls during peak travel times in cities, and peak fees for airplane takeoff and landing slots — and using the proceeds to lower other taxes would make citizens on average better off.

Responses
 

Source: European IGM Economic Experts Panel
www.igmchicago.org/european-economic-experts-panel

Responses weighted by each expert's confidence

Source: European IGM Economic Experts Panel
www.igmchicago.org/european-economic-experts-panel
Participant University Vote Confidence Comment Bio/Vote History
Aghion Philippe Aghion Harvard Did Not Answer
Bio/Vote History
         
Allen Franklin Allen Imperial College London Agree 7
These kinds of taxes are beneficial in my view provided the technology for implementing them is sufficiently low cost.
Bio/Vote History
         
Antras Pol Antras Harvard Strongly Agree 9
Bio/Vote History
         
Baldwin Richard Baldwin The Graduate Institute Geneva Did Not Answer
Bio/Vote History
         
Besley Timothy J. Besley LSE Strongly Agree 8
Congestion is a huge economic problem, especially in parts of the UK (such as London) which can be mitigated with more congestion charging.
Bio/Vote History
         
Blanchard Olivier Blanchard Peterson Institute Strongly Agree 10
no brainer for an economist, so long as redistribution implications taken care of.
Bio/Vote History
         
Bloom Nicholas Bloom Stanford Strongly Agree 10
Bio/Vote History
         
Blundell Richard William Blundell University College London Strongly Agree 9
One of the key negative externalities of private car use in modern cities in congestion. Congestion charging can correct this, e.g. London.
Bio/Vote History
         
Bénassy-Quéré Agnès Bénassy-Quéré Paris School of Economics Uncertain 6
The citizens would likely be better off if the congestion charges were used to invest in public transportation.
Bio/Vote History
         
Carletti Elena Carletti Bocconi Agree 2
I am not familiar with this topic, and I am not sure about the feasibility of the idea
Bio/Vote History
         
Danthine Jean-Pierre Danthine Paris School of Economics Strongly Agree 10
Bio/Vote History
         
De Grauwe Paul De Grauwe LSE Agree 8
Bio/Vote History
         
Eeckhout Jan Eeckhout University College London Strongly Agree 10
Bio/Vote History
         
Fehr Ernst Fehr Universität Zurich Agree 7
Bio/Vote History
         
Freixas Xavier Freixas Universitat Pompeu Fabra Strongly Agree 8
Basic microeconomic theory of internalizing externalities (Pigouvian tax)
Bio/Vote History
         
Fuchs-Schündeln Nicola Fuchs-Schündeln Goethe-Universität Frankfurt Strongly Agree 8
Bio/Vote History
         
Galí Jordi Galí Universitat Pompeu Fabra Agree 8
Efficient allocation of a scarce resource to those who value it more.
Bio/Vote History
         
Garicano Luis Garicano LSE Did Not Answer
Bio/Vote History
         
Giavazzi Francesco Giavazzi Bocconi Did Not Answer
Bio/Vote History
         
Griffith Rachel Griffith University of Manchester Strongly Agree 10
Charges would shift some consumers quieter times and reduce congestion, lower taxes would compensate those paying higher fares.
Bio/Vote History
         
Guerrieri Veronica Guerrieri Chicago Booth Agree 7
Bio/Vote History
         
Guiso Luigi Guiso Einaudi Institute for Economics and Finance No Opinion
Bio/Vote History
         
Hellwig Martin Hellwig Max Planck Institute for Research on Collective Goods Did Not Answer
Bio/Vote History
         
Honohan Patrick Honohan Trinity College Dublin Agree 7
Depends on the way in which the taxes are rebated.
Bio/Vote History
         
Kleven Henrik Kleven LSE Strongly Agree 9
Bio/Vote History
         
Krahnen Jan Pieter Krahnen Goethe University Frankfurt Uncertain 7
Note that crowdedness is endogenous, and an allocation of proceeds to all citizens (rather than other transportation users) is third best.
Bio/Vote History
         
Krusell Per Krusell Stockholm University Strongly Agree 8
this approach works in theory and seems to also work in practice
Bio/Vote History
         
Kőszegi Botond Kőszegi Central European University Strongly Agree 10
This is a typical externality.
Bio/Vote History
         
La Ferrara Eliana La Ferrara Bocconi Agree 7
Bio/Vote History
         
Leuz Christian Leuz Chicago Booth Agree 6
Congestion pricing is like pricing externalities. But welfare effects are not entirely obvious.
-see background information here
Bio/Vote History
         
Meghir Costas Meghir Yale Strongly Agree 1
Bio/Vote History
         
Neary Peter Neary Oxford Strongly Agree 10
Travelling on congested roads, no matter how desirable to the individual, imposes costs on other users which governments should internalise
Bio/Vote History
         
O'Rourke Kevin O'Rourke Oxford Agree 5
The average citizen is a fiction so I would like to know more about distributional implications of the charges & whose taxes will be cut.
Bio/Vote History
         
Pagano Marco Pagano Università di Napoli Federico II Agree 4
It is surely efficient, although it may also generate redistribution effects.
Bio/Vote History
         
Pastor Lubos Pastor Chicago Booth Strongly Agree 9
Bio/Vote History
         
Persson Torsten Persson Stockholm University Strongly Agree 7
Peak-load congestion charges have signficantly lowered traffic in Stockholm, London and other European cities.
Bio/Vote History
         
Pissarides Christopher Pissarides LSE Strongly Agree 10
Congestion has negative externalities and the policy described compensates citizens for their costs
Bio/Vote History
         
Portes Richard Portes London Business School Strongly Agree 10
London congestion charge worked - briefly. Just raise it!
Bio/Vote History
         
Prendergast Canice Prendergast Chicago Booth Strongly Agree 8
Bio/Vote History
         
Reichlin Lucrezia Reichlin London Business School Agree 5
Bio/Vote History
         
Repullo Rafael Repullo CEMFI Strongly Agree 8
Bio/Vote History
         
Rey Hélène Rey London Business School Agree 6
Bio/Vote History
         
Schoar Antoinette Schoar MIT Strongly Agree 9
Bio/Vote History
         
Van Reenen John Van Reenen MIT Strongly Agree 9
The most efficient way to make use of congested resources. Just lacks political will
Bio/Vote History
         
Vickers John Vickers Oxford Agree 8
Curbing externalities while raising revenue is doubly good. But charging system may itself have cost.
Bio/Vote History
         
Voth Hans-Joachim Voth University of Zurich Agree 8
Bio/Vote History
         
Weder di Mauro Beatrice Weder di Mauro Gutenberg University Mainz and INSEAD Strongly Agree 9
Bio/Vote History
         
Whelan Karl Whelan University College Dublin Agree 7
If we are going to tax things (and we have to) it's best to tax things that have negative effects such as congestion, alcohol, carbon etc.
Bio/Vote History
         
Wyplosz Charles Wyplosz The Graduate Institute Geneva Strongly Agree 10
"On average" is crucial because these measures have income redistribution effects that hurt some and benefit others.
Bio/Vote History
         
Zilibotti Fabrizio Zilibotti Universität Zurich Strongly Agree 10
Bio/Vote History
         

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