Efficient and politic congestion tolls

Abstract

In western democracies, the economists' advocacy of road congestion pricing has not gained acceptance to the extent that schemes have been implemented. It is suggested that this is because of the perceived redistribution effects. The paper suggests two ways in which congestion tolls might be introduced without invoking the usual degree of opposition. One is based on the idea of two-part auctions, and the second is focused upon priced options additional to existing congested toll-free roads.