The purpose of this paper is to analyse optimal two-part tariffs in the presence of externalities within the framework of a model of discrete choice. The prototype application of the model is optimal taxation of car ownership and car use to correct for external costs. The externality we consider...

This paper considers various policy measures to reduce traffic externalities in cities, including externality-reducing investments, tolls, emission standards, low emission zones, and bypass capacity to guide traffic around the city center. Using a simple model that distinguishes local and...

This paper considers various policy measures that governments can use to reduce traffic externalities in cities. Unlike much of the available literature that emphasized congestion, we focus on measures that reduce pollution, noise and some accident risks. These measures include noise barriers,...