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The optimal mix of pricing and infrastructure expansions to alleviate traffic congestion and in-bus crowding in grand Casablanca (English)

Like in many large cities in developing countries, traffic in Grand Casablanca, Morocco, is congested and public buses are crowded. These conditions are alleviated by a combination of supply-side infrastructure expansions, such as more buses and new road capacity, and demand-side pricing instruments, such as parking and fuel taxes. Using an empirical urban transportation mode choice model for Casablanca, this study finds a mix of these expansion policies and pricing instruments to alleviate congestion and maximize aggregate social welfare. The optimal mix is sensitive to the marginal costs of the infrastructure expansions. If the city were to spread out in its periphery where land constraints do not exist and land is available at lower prices, a supply-side instrument, particularly the optimal expansion of roads, would be far more effective in achieving welfare gains than the use of optimal pricing instruments without new roads. By contrast, if the city were to densify in already built-up areas, land and other physical constraints and the high price of land may leave expensive “elevated roads” as the only option. In this case, demand-side instruments together with the elevated roads would equally contribute to reduce traffic congestion and in-bus crowding.

Details

  • Author

    Anas,Alexandros, De Sarkar,Sayan, Timilsina,Govinda R.

  • Document Date

    2018/06/28

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS8501

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Morocco,

  • Region

    Middle East and North Africa,

  • Disclosure Date

    2018/06/28

  • Disclosure Status

    Disclosed

  • Doc Name

    The optimal mix of pricing and infrastructure expansions to alleviate traffic congestion and in-bus crowding in grand Casablanca

  • Keywords

    fuel tax; parking tax; marginal utility of income; Operational Core Curriculum; marginal rate of substitution; fuel consumption per kilometer; fuel tax rate; Social Welfare; waiting time; fuel tax revenue; bus fare; mode of transport; high occupancy vehicle; average fuel economy; road capacity expansion; average bus occupancy; price of land; number of journeys; average monthly wage; department of economics; kilometers per hour; average vehicle occupancy; vehicle fuel efficiency; average travel speed; daily travel time; demolition of buildings; development research group; average occupancy rate; choice of mode; daily commute time; ground level road; public transit subsidy; public sector decision; average exchange rate; public urban transport; urban transit system; urban transport sector; urban transport service; large urban areas; trips by bus; average travel time; number of workers; public policy instrument; length of road; average monthly income; road construction cost; population of worker; average taxi occupancy; price of petrol; price of fuel; aggregate social welfare; additional road capacity; price of diesel; fleet vehicle; fleet of vehicle; supply side policy; education and health; monetary cost; expected utility; standing passenger; taxi operator; fuel cost; taxi fare; traffic load; random utility; bus supply; Public Transportation; parameter value; tram line; supply-side policy; road congestion; elevated road; taxi industry; bus journey; welfare gains; mode choice; infrastructure expansion; average distance; tram network; vehicle type; welfare effect; policy substitute; bus operation; public revenue; bus rider; fuel use; total traffic; disposable income; elasticity value; average elasticity; bus travel; high-rise building; bus ridership; road type; seat capacity; marginal disutility; fuel price; travel distance; traffic speed; bus passenger; cost elasticity; optimal policy; horizontal expansion; trip switch; parking fee; public deficit; baseline data; income effect; consumer price; daily revenue; insurance cost; percent change; cost component; bus fleet; bus operating; aggregate welfare; average capacity; high tax; vehicle kilometer; taxi driver; profit equation; journey length; demand function; open access; public authority; passenger increase; bus operator; base case; bus trip; fare collection; welfare function; co2 emission; infrastructure policy; monetary term; adequate infrastructure; surface road; operational deficit; expected value; consumption fuel; bus service; transfer mechanism; sustainable urban; gas consumption; total travel; adjustment parameter; development policy; policy space; transportation elasticity; urbanized area; vehicle tax; amortization cost; free flow; literature review; future research; bus demand; population increase; Learning and Innovation Credit; hourly wage; empirical literature; commute trip; leisure travel; bus tram; bus route; welfare analysis; household spending; service charges; weighted average; excise tax; replacement parts; base year; personnel expense; taxi ridership; transit ridership; floor area; advertising revenue; household income; rural area; transportation expenditure; control of costs; urbanized land; price decision; tram system; competitive industry; elastic supply; opportunity cost; aggregate model; road expansion; peripheral area; welfare benefit; critical infrastructure; high frequency; carbon emission; simulation result; congestion toll; utility function; work trip; travel mode; short trip; vehicle ownership; vehicle purchase; private operator; national gdp; urban wage; urban periphery; transportation infrastructure; national territory; urban agglomeration; data limitation; Labor Market; consumer income; taxi service; public bus; tax instrument; moroccan dirham; ad valorem; vehicle passenger; tax factor; market price; passenger occupancy

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Citation

Anas,Alexandros De Sarkar,Sayan Timilsina,Govinda R.

The optimal mix of pricing and infrastructure expansions to alleviate traffic congestion and in-bus crowding in grand Casablanca (English). Policy Research working paper,no. WPS 8501 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/452941530220363954/The-optimal-mix-of-pricing-and-infrastructure-expansions-to-alleviate-traffic-congestion-and-in-bus-crowding-in-grand-Casablanca