Monocentric City Research Articles

On Revenue Recycling and the Welfare Effects of Second-Best Congestion Pricing in a Monocentric City

This paper explores the interactions between congestion pricing and a tax-distorted labor market within a monocentric urban equilibrium model. We compute the efficiency gains of various second-best policies, i.e. combinations of toll schemes and revenue recycling programs, with a predetermined level of public revenue. We find that 35% of the space-varying road tax does not reflect marginal external congestion costs, but rather functions as a Ramsey-Mirrlees tax, i.e. an efficiency enhancing mechanism allowing space differentiation of the labor tax. Such a space-varying tax adds a quite different motivation to road pricing, since it can produce large welfare gains even in the absence of congestion. We show that both a cordon toll and a flat kilometer tax achieve over 80% of these gains when combined with specific types of revenue recycling, such as labor tax cuts or public transport subsidies. Sensitivity analysis shows that the optimal type of revenue recycling depends on the level of inefficiency in the provision of public transport prior to the introduction of congestion pricing.

Decentralized Road Investment and Pricing in a Monocentric, Multi-Jurisdictional City: Efficiency with Spillovers

This paper shows that the inefficiency of fiscal decentralization in the presence of spillovers, a main tenet of the decentralization literature, is overturned in a particular transportation context. In a monocentric city where road (bridge) capacity is financed by budget-balancing user fees, decentralized capacity choices (made by individual zones within the city) generate the social optimum despite the presence of spillovers. This conclusion is closely tied to the famous self-financing theorem of transportation economics.

Traffic rationing and pricing in a linear monocentric city

SUMMARYThis paper presents a simple spatial equilibrium model for a linear monocentric city to investigate the effects of rationing and pricing on morning commuters' travel cost and modal choice behavior in each location. Under rationing and pricing, every day in the morning peak hour, each commuter is classified as either “free” or “rationed”. “Free” commuters are allowed to use the highway without paying the toll, whereas “rationed” commuters can avoid the toll only if they travel by transit. Each day, a fraction of commuters are rationed in their free use of the highway, and the rationing fractions are determined systematically so that everyone is equally rationed in a given period. It is found that Pareto‐improving rationing and pricing scheme might be obtained as a combination of the rationing degree and the toll associated with rationing. Extension to the rationing and pricing scheme with cordon and park‐and‐ride service has been made. Cordon and park‐and‐ride might help in improving the efficiency of rationing and pricing strategy although remains its Pareto‐improving property. Copyright © 2012 John Wiley & Sons, Ltd.

Public goods and congestion in a system of cities: how do fiscal and zoning policies improve efficiency?†

How can fiscal and density-zoning instruments help finance local public goods, while mitigating congestion in a general equilibrium system of cities? The literature--based on the model of a single monocentric city with congestion but no public good--shows core densities increasing and total land area decreasing if Pigouvian tolls or urban growth boundaries (UGBs) are used. In the utility-improving regimes of our setup, including tolls or the UGB, core densities are lowered in each city but more and smaller cities emerge at long-run equilibrium. If lot size and other goods are sufficiently complementary in consumption, it is optimal that total land area increases in the aggregate even as congestion tolls or the UGB decrease the total area of each city. Density zoning is either redundant or achieves first-best efficiency depending on the fiscal instruments present. Language: en

How polycentric is a monocentric city? Centers, spillovers and hysteresis

We assess the extent to which firms in an environment of decreasing transport costs and industrial transformation value the benefits of proximity to a historic CBD and agglomeration economies in their location decisions. Taking a hybrid perspective of classical bid-rent theory and a world where clustering of economic activity is driven by between-firm spillovers, Berlin, Germany, from 1890 to 1936 serves as a case in point. Our results suggest that the average productivity effect of a doubling of between- firm spillovers over the study period increases from 3.5% to 8.3%. As the city transforms into a service-based economy, several micro agglomerations emerge. Their locations close to the CBD still make the city look roughly monocentric. This is in line with a hysteresis effect in which second-nature geography drives the ongoing strength of a historic city center even though the importance of the originally relevant first-nature geography has vanished.

The changing spatial economy of cities: An exploratory analysis of Cape Town

The spatial economy of South African cities is generally believed to be experiencing selective deconcentration, which may exacerbate social inequality because of the physical disconnection between jobs and population. This paper assesses whether the locational pattern of economic activity across Cape Town is following this trajectory, using data from the Regional Service Council levies between 2001 and 2005. One of the main findings is that the city centre and areas close to the centre have maintained their economic dominance, therefore Cape Town remains a monocentric city. Yet the pattern of recent growth is more dispersed than the prior distribution because suburban nodes have gained a disproportionate share of new activity. In addition, the pattern of recent growth is skewed towards the high-income suburbs and away from the Cape Flats where most of the city's poor live. This uneven growth trajectory may be a source of concern for economic, social and environmental reasons.

A new interpretation on the optimal density regulations: Closed and open city

Optimality of urban density regulations differs between a closed city and an open city. We demonstrate, by examining optimal floor area ratio (FAR) regulation, how to control building size to mitigate traffic congestion externality in a monocentric city. Results show that a closed city requires not only downward adjustment to the market density at boundary locations using maximum FAR regulation but also upward adjustment at central locations using minimum FAR regulation. On the other hand, an open city requires only the former. The common practice of imposing only maximum FAR regulation is thus insufficient for closed cities although it is effective for open cities.

Functional Polycentricity: Examining Metropolitan Spatial Structure through the Connectivity of Urban Sub-centres

A shift from monocentric cities to increasingly polycentric urban regions has been widely recognised in recent research literature. Although polycentricity in general refers to the existence of several adjacent centres within the same area, many studies have emphasised that functional linkages between the centres of an urban system are also an essential part of polycentricity. Despite the increasing number of studies concerning functional polycentricity, research on the subject is still in a development phase. In this paper, a new approach to measure functional polycentricity is presented, in which functional polycentricity is approached through the connectivity of individual centres to the whole urban system. The paper illustrates the potential of the method with empirical case studies addressing the urban spatial structures of three functional urban regions in Finland. In the case studies, detailed commuting data are used in order to measure the degree of functional polycentricity.

Endogenous vehicle-type choices in a monocentric city

Motivated by several empirical studies showing a positive relationship between residential density and vehicle fuel efficiency chosen by the residents, this paper presents a modified monocentric city model with endogenous vehicle-typechoices. Consumers are assumed to explicitly consider driving inconvenience in the choice of vehicle sizes, and the resulting commuting cost is a function of residential density. This vehicle-type choice problem is embedded in an otherwise standardmonocentric city model. A convenience-related advantage in less-dense areas makes our bid–rent curve flatter than that in the standard model. Comparative static analyses suggest that an increase in commuting cost per mile, especially from increasedunit cost of driving inconvenience, may induce spatial expansion of the city. Since driving inconvenience is lower in less-dense suburbs, the increased unit cost of driving inconvenience pulls people toward suburbs, potentially leading to urban sprawl. Part of comparative static analysis shows how the city's vehicle fuel efficiency depends on the city characteristics such as population and agricultural rent.

Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city

This paper proposes a new model for investigating the effects of integrated rail and property development on the design of rail line services in a linear monocentric city, in which the property development rights at railway station areas are conferred to a private rail operator. The proposed model allows an explicit consideration of the interaction between two types of agents in the economy: (1) a private rail operator who seeks to optimize rail service variables—rail line length, number and spacing of stations, headway and fare—to maximize its own net profit, which is the sum of revenues from passenger fare-box and property development; and (2) households who choose the residential locations that maximize their own utilities subject to a budget constraint. The solution properties of the proposed model are analyzed, and a heuristic solution algorithm is presented. An illustrative example is used to show the application of the proposed model. The findings show that integrated rail and property development can change a city’s land-use pattern and housing market (in terms of housing density, space, and price), and its economic viability is closely related to household income level and residential density of the city.

A Model of Mixed Land Use in Urban Areas

The paper provides a model that explains mixed land use patterns in urban areas. The paper contains a proof of the ex-istence of competitive market equilibrium in a market for land in a small zone where more than one land use may be present. The model includes the possibility that external effects (both negative and positive) exist among the land uses. Brouwer’s fixed point theorem is used for the proof. Conditions are derived in which mixed land use is an equilibrium pattern in a monocentric city.

Modeling intermodal equilibrium for bimodal transportation system design problems in a linear monocentric city

This paper investigates the intermodal equilibrium, road toll pricing, and bus system design issues in a congested highway corridor with two alternative modes – auto and bus – which share the same roadway along this corridor. On the basis of an in-depth analysis of the demand and supply sides of the bimodal transportation system, the mode choice equilibrium of travelers along the continuum corridor is first presented and formulated as an equivalent variational inequality problem. The solution properties of the bimodal continuum equilibrium formulation are analytically explored. Two models, which account for different infrastructure/system regulatory regimes (public and private), are then proposed. In the public regulatory model, the road toll location and charge level are simultaneously optimized together with the bus service fare and frequency. In the private regulatory model, the fare and frequency of bus services, which are operated by a profit-driven private operator, are optimized for exogenously given toll pricing schemes. Finally, an illustrative example is given to demonstrate the application of the proposed models. Sensitivity analysis of residential/household distribution along the corridor is carried out together with a comparison of four different toll pricing schemes (no toll, first best, distance based, and location based). Insightful findings are reported on the interrelationships among modal competition, market regulatory regimes, toll pricing schemes, and urban configurations as well as their implications in practice.

Cordon pricing in the monocentric city: theory and application to Paris region

Résumé Nous proposons un algorithme de résolution du modèle monocentrique de transport avec congestion et nous utilisons cet algorithme afin d’explorer l’impact du péage routier dans les zones urbaines. Plus particulièrement, on considère la région Île-de-France et on cherche à comparer le péage de cordon simple avec le péage de cordon double. Le cas de référence étant celui où il n’y a pas de péage (situation actuelle). On trouve que le cordon double permet d’atteindre un niveau d’efficience de 73 % (par rapport à l’optimum de premier rang) et donc une amélioration de près de 10 % par rapport au cordon simple. Les deux schémas contribuent à réduire les véhicules-kilomètres et donc les émissions de CO 2 . Nous discutons aussi la question de l’acceptabilité du péage où l’on montre une opposition relativement plus faible pour le cordon double. Classification JEL : R21, R41, R48.

Germany’s Polycentric Metropolitan Regions in the World City Network

On a regional scale, two types of polycentricity can be observed. The first involves polycentric metropolitan regions that have evolved in the course of post-suburban development around a previously monocentric city, whereas the second type involves neighbouring metropolises evolving into a multi-core polycentric metropolitan region due to an increase in the functional interaction between each other. The German urban system is characterised by both types of polycentricity. In this paper I examine the role of these two types of polycentricity within the context of globalisation. I address the question of whether individual metropolitan cores and metropolitan cores and their associated post-suburban areas share the global functions of a metropolitan region or whether such functions are concentrated in a single city within the metropolitan region. To this end, I analyse the locations of leading global advanced producer service firms in Germany in their role as sub-nodes of the world city network. Finally, I discuss the empirical findings in the context of modelling the world city network.

Spatial determinants of urban land conversion in large Chinese cities: a case of Hangzhou

In this research we assessed the urban land conversion, and identified the factors responsible for the conversion, from 1995 to 2009 in Hangzhou, a large city located in the lower Yangtze River Delta of China. We mapped urban land from satellite images by using a hybrid approach of spectral mixture analysis, unsupervised classification, and expert rules. We employed binary logistic regression to model the probability of urban land conversion as a function of spatial independent variables. In recent years Hangzhou started its transformation from a compact, monocentric city to a polycentric city. We found that accessibility to the central business district, industrial centers, roads, Qiantang River, the amount of built-up area in the neighborhood, locations of markets, and spatial policies were the major determinants of Hangzhou's urban land conversion. Moreover, the availability of land in the neighborhood has become increasingly important in recent years. We identified several major institu- tional forces underlying Hangzhou's urban development: administrative annexation and development zones, the increasingly important role of the market, and the unique role of local government. The results from our research indicate the need for policies and plans that can better manage and reduce urban sprawl in Hangzhou.

Spatial Restructuring to Facilitate Shorter Commuting

An airport is a key infrastructure project in many cities. However, its structural effects on the distribution of employment and the commuting patterns are rarely examined at the city level. This paper aims to examine the impact of the relocation of the Hong Kong International Airport on the jobs-housing balance of the city under two scenarios. The first scenario shows the actual situation in 2002 after the airport was relocated to a suburban area. This scenario reflects the government’s effort to have co-ordinated urban development. The second scenario shows the situation with a hypothetical and relatively monocentric city structure. The airport was assumed to remain within the urban core area. Different indicators of minimum and excess commuting are compared. The results show that the airport relocation has enabled shorter commuting and, hence, lower commuting emissions. This analytical framework can be applied to other cities and for analysing other land use changes.

A CONSOLIDATED MODEL OF MONOCENTRIC CITIES AND AN EMPIRICAL ANALYSIS OF URBAN SCALES AND LAND PRICES IN CHINESE CITIES*

ABSTRACT Motivated by the newly established Chinese urban land markets, we develop a theoretical model that unifies the “closed” and “open” features of the classical monocentric city model. The model features interactions between permanent urban residents and migrants and exhibits a distinctive equilibrium pattern. The theoretical model is tested empirically, using recent Chinese city-level data. The empirical findings indicate that market forces now play an important role in urban expansion and land price formation, while various forms of government planning are still influential. Our results show that migrants exert a less pronounced impact than the classical “open” city model has suggested.

Transformation in Retailing Behaviour, Patterns and Spatial Settings: The Case of the City of Trabzon

This paper investigates the spatial distribution and transformation of retailing and services in the city of Trabzon, which is historically a monocentric city and which has been in a process of changing into a polycentric form following the population and spatial growths of the city and the development of its trade and commerce. A questionnaire survey was conducted by Aydin in 2001 in 26 neighbourhoods of the city to quantify the distribution of central functions among them in order to understand the transformation in time, and comparisons were made with the findings of earlier studies made by Aydemir (1978, Doğu Karadeniz Bölgesi Trabzon Alt Bölgesi (TBAB) Kentsel Etki Alanlarının Saptanması İçin Yöntem: Etkileşim Esası (İstanbul: İTÜ, Mimarlık Fakültesi)) and Trabzon Analytical Study (1968, İller Bankası, Ankara, Güzel Sanatlar Matbaası A.Ş.) to show the transformations in terms of quality, quantity and spatial dispersion. However, the transformation is ongoing since 2000 in the form of first shopping markets then shopping centres and the large shopping malls. The main findings of the paper are the changes in the number and quality in retail shopping, increasing specialization in central functions and spatial dispersion towards sub-centres which are not planned according to the current development plan. Therefore, there is a need for a planned development of these sub-centres and shopping centres in order to prevent a misuse of scarce land, which will be needed for further use in the future.

The Rent Gap at the Metropolitan Scale: New York City's Land-Value Valleys, 1990-2006

In his rent gap theory, Neil Smith argues that development is most likely to occur in areas where the capitalized land rents differ substantially from the potential ground rents that could be obtained if the land were converted to its highest and best use. At the metropolitan scale, the rent gap appears in the form of abberations vis-à-vis the monotonically decreasing rent gradients of the classic monocentric city. This study utilizes public use microdata sample (PUMS) data for 1990, 2000, and 2006 to test Smith's hypothesis that as capital flows into these land-value "valleys," the rent gradient shifts upward and outward, displacing the land-value valley farther from the CBD. It is concluded that from 1990 to 2006 there were two visible land-value valleys, and, consistent with Smith's hypothesis, as the first valley closed the second expanded.

Monocentric City with Discrete Transit Stations

The monocentric model is extended by considering a discrete number of accessible mass transit stations. Households combine two modes for their daily home-to-work trip: a first mode for terminal access to stations and a second (long-haul) mode that consists of radial mass transit axes. The urban equilibrium, that is, city size and household distribution, is derived as a function of the mass transit network and the distribution of land housing capacity. At the urban equilibrium, the land rent peaks at transit stations and decreases with the travel cost from the city center, rather than with the distance to it. Accordingly, the housing lot size increases with the travel cost from the city center. These features distinguish this framework from previous monocentric models. The analysis is based on the assumptions that land owners are absent and the city is open (households’ level of utility is given and the population size is endogenous). For numerical illustration, the model is calibrated to a selected rail network in the Paris area. A sensitivity analysis of the urban structure and land use equilibrium is conducted, with key model parameters.