This chapter forecasts transportation energy demand, for both the U.S. anc California, for the next 20 years. Our guiding principle has been to concentrat~ our efforts on the most important segments of the market. We therefore provide detailed projections for gasoline (58 % of California...

Our current alarm about traffic congestion stems in large part from perception of trends: thirty years ago traffic flowed smoothly; today it crawls. If this trend continues, congestion will become gridlock. These perceptions lead to statements such as: "There is no point to building highways,...

The turnpike companies of early America (roughly 1795-1840) were very unprofitable but conferred vast benefits to communities served. Purchases were necessary to complete the road and unprofitability was foreseen. Thus the turnpikes would appear to have been public goods. Yet hundreds of...

Consider a consumer who can choose to travel on a congestible fast mode or on a congestible slow mode. Users who most value time will use the fast mode. A toll on the slow mode can induce some people who initially use that mode to switch to the fast mode. A toll on the slow mode with revenue not...

Many regulatory programs such as environmental regulation are effective only if firms make irreversible investments that reduce the cost of compliance. A firm potentially subject to regulation may therefore behave strategically by not investing, thereby forcing the regulator to void the proposed...

Governmental facilities for such services as education, health, and transportation are often small, of poor quality, and overcrowded, even when the costs are spread among all taxpayers. We also find that governments may subsidize private facilities providing the same services, or may charge...

Consider a community with individuals who consume a private good and use a congestible facility. Without a congestion fee, use of the congestible facility will exceed the socially optimal level. We show that under some conditions this externality problem can be solved by income redistribution....

A linear tax on an externality-generating activity may not attain the first-best social optimum. The problem arises because a monopolist's gain from improving the characteristics of a product may differ from social gian, even when consumers are willing to pay for change. 

Consider users who can choose between using two modes of travel (say a road and mass transit), and who can choose to incur a fixed cost that reduces the future cots of using mass transit. A congestion toll on the road may serve two purposes. First, it can induce users in the current period to...

This paper summarizes the literature on the effectiveness of employee ridesharing programs. It provides the conceptual and empirical basis for our evaluation of AQMD’s mandatory ridesharing ordinance, Regulation XV. We review the literature on the following topics: i) employee ridesharing...