Abstract
This paper formulates the methodologies to estimate optimal congestion tolls from long-run and short-run perspectives and applies them to the highways of Seoul. An optimal long-run congestion toll is estimated with an optimal volume-capacity-ratio to minimize the total costs which consist of two components: road construction and maintenance costs and traveler costs. By contrast, an optimal short-run congestion toll is estimated with a supply-demand equilibrium which is determined by using a speed-flow function and a disaggregate modal choice model. The results of a long-run analysis for the Seobu urban expressway suggest the optimal volume-capacity-ratio of 1.35 and the optimal congestion toll of 503 Won per automobile kilometer. By contrast, those of a short-run analysis for the Mia-ro urban arterial suggest 1.31 and 420 Won, respectively. Although our results are to some degree dependent on the interest rate and time value assumed, one basic conclusion holds up: the congestions toll tested could generate substantial gains in social welfare if applied to Seoul.
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