We study the duopolistic interaction between congestible facilities that supply perfect substitutes. Firms are assumed to make sequential decisions on capacities and prices. Since the outcomes directly affect consumers’ time cost of accessing or using a facility, the capacity sharing rule...

Consider two firms, at different locations, supplying a homogenous good at constant marginal production cost. Consumers incur travel costs to the firm for each unit purchased, and the travel costs increase with the amount of travel to each firm (congestion). When all traffic and all congestion...

In many economies, motor fuel taxes have long been the main instruments for generating tax revenues from the transport sector. Nowadays they are also rationalized on the grounds of reducing congestion, carbon emissions, local air pollution, energy dependency, and sometimes accident costs....

This paper discusses the economics of three environmental and energy issues in transport: local air pollution, energy supply and climate change. The focus is on road transport as the dominant transport mode. The application of the main environmental instruments is briefly discussed for local air...