Pricing of Transport Networks, Redistribution and Optimal Taxation

Russo, Antonio (2012) Pricing of Transport Networks, Redistribution and Optimal Taxation. TSE Working Paper, n. 12-353

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Official URL: http://tse-fr.eu/pub/25766

Abstract

We study optimal pricing of roads and public transport in presence of nonlinear in-
come taxation. Individuals are heterogeneous in unobservable earning ability. Optimal
transport tarifs depend on time costs of travel and work schedule adjustments (days
and hours worked per day) as a response to commuting costs. We find that discounts for
low income individuals are optimal only if the time cost of a trip is small enough. Lower
travel time costs facilitate screening: therefore, redistribution provides an additional
motive for congestion pricing. Finally, we investigate the desirability of means-testing
of transport tarifs.

Item Type: Monograph (Working Paper)
Language: English
Date: November 2012
Uncontrolled Keywords: road pricing, public transport pricing, income taxation, meanstesting
JEL codes: H21 - Efficiency; Optimal Taxation
H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
R41 - Transportation - Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:25
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:25766
URI: http://publications.ut-capitole.fr/id/eprint/15260

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