Road pricing for congestion and accident externalities for mixed traffic of motorcycles and automobiles

Motorcycles play an important role in sharing the trip demand with automobiles for commuting, especially in many cities in Asia. However, the accident cost of a trip by motorcycle is higher than that of an automobile. This study analyzes the road pricing for the congestion and accident externalities of mixed traffic of automobiles and motorcycles. A model for equilibrium trips with no taxation and that for optimal trips with taxation are explored. The model is then applied to the Tucheng City–Banciao City–Taipei central business district corridor in Taipei metropolitan area. The findings in this case study show that the tax for accident externality is larger than that for congestion externality.