Pricing Externalities from Passenger Transportation in Mexico City

The Mexico City Metropolitan Area has been suffering severely from transportation externalities such as accidents, air pollution, and traffic congestion. This study examines pricing instruments to reduce these externalities using an analytical and...

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Main Authors: Parry, Ian W. H., Timilsina, Govinda R.
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
AIR
CAR
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091009143814
http://hdl.handle.net/10986/4263
id okr-10986-4263
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCIDENT COSTS
ACCIDENT EXTERNALITIES
ACCIDENT RATES
ACCIDENTS
AIR
AIR POLLUTION
AIR QUALITY STANDARDS
ALTERNATIVE TRANSPORTATION
ALTERNATIVE TRANSPORTATION MODES
ALTERNATIVE TRAVEL
ALTERNATIVE TRAVEL MODES
AUTO PASSENGER
AUTO PRODUCTION
AUTO TRAVEL
AUTO USE
AUTOMOBILE
AUTOMOBILE CONGESTION
AUTOMOBILE MILEAGE
AUTOMOBILE TRAVEL
AUTOMOBILE USE
AUTOMOBILES
AVERAGE TRAVEL TIME
AVERAGE VEHICLE FUEL ECONOMY
BAGGAGE
BUS FARE
BUS MILEAGE
BUS PASS
BUS PASSENGER
BUS SYSTEM
BUS TRANSIT
BUS TRAVEL
BUSES
CAPITAL INVESTMENTS
CAR
CAR OWNERSHIP
CARBON CONTENT
CARS
CLIMATE CHANGE
COMMUTER RAIL
CONGESTION CHARGES
CONGESTION COSTS
CONGESTION DECLINES
CONGESTION EXTERNALITIES
CONGESTION PRICING
CONGESTION PROBLEMS
CONGESTION TOLLS
COST OF TRAFFIC
COST OF TRAVEL
COSTS OF ROAD CONGESTION
COSTS OF TRAFFIC ACCIDENTS
COSTS OF TRAVEL
COSTS PER PASSENGER MILE
DEMAND FOR TRANSPORTATION
DIESEL
DIESEL FUEL
DRIVERS
DRIVING
DRIVING COSTS
ELASTICITY
EMISSION
EMISSION RATES
EMISSIONS
EMISSIONS PER PASSENGER
ENVIRONMENTAL COSTS
EXCISE TAX
EXCISE TAX ON GASOLINE
EXTERNALITIES
FARE ELASTICITIES
FARE REDUCTIONS
FARE SUBSIDIES
FARES
FIXED COSTS
FUEL
FUEL COSTS
FUEL EXTERNALITIES
FUEL PRICE
FUEL PRICE ELASTICITIES
FUEL PRICES
FUEL PRODUCTION
FUEL TAX
FUEL TAX INCREASE
FUEL TAX INCREASES
FUEL TAX PAYMENTS
FUEL TAX REVENUES
FUEL TAXATION
FUEL TAXES
FUEL USE
FUELS
FUGITIVE EMISSIONS
GASOLINE
GASOLINE CONSUMPTION
GASOLINE EXCISE
GASOLINE PRICE
GASOLINE PRICES
GASOLINE TAX
GASOLINE TAXES
GASOLINE USE
GLOBAL CLIMATE CHANGE
GREENHOUSE GASES
HEAVY RAIL
HEAVY RAIL COMMUTER
HIGHWAY
IMPLICATIONS FOR TRANSPORTATION
INFRASTRUCTURE INVESTMENT
INJURY
INTERCITY RAIL
INVESTMENT IN ROADS
LIGHT RAIL
LOAD FACTORS
LOCAL AIR POLLUTION
LOCAL AIR QUALITY
LONG-DISTANCE
LONG-DISTANCE TRAVEL
MARGINAL EXTERNAL COST
MARGINAL EXTERNAL COSTS
MASS TRANSIT
MILEAGE
MILEAGE REDUCTIONS
MILES PER CAPITA
MODAL SHARES
MOTORISTS
ODOMETER
PASSENGER OCCUPANCY
PASSENGER TRAVEL
PASSENGER VEHICLES
PASSENGERS
PEAK TRAVEL
PEDESTRIANS
POLLUTION CONCENTRATIONS
POLLUTION COSTS
POLLUTION DAMAGES
POLLUTION REDUCTION
PRICE CHANGES
PRICE ELASTICITIES
PRICE ELASTICITY
PRICE ELASTICITY OF GASOLINE
PRICE OF FUEL
PRICE OF GASOLINE
PRIVATE VEHICLE
PUBLIC ROADS
PUBLIC TRANSIT
PUBLIC TRANSPORT
PUBLIC TRANSPORTATION
RAIL CAR
RAIL FARES
RAIL LINKS
RAIL PASSENGER
RAIL PROJECTS
RAIL SERVICE
RAIL SYSTEMS
RAIL TRAVEL
RAILWAY
RAILWAY SYSTEM
RAILWAYS
RAPID BUS
ROAD
ROAD CONGESTION
ROAD EXPANSION
ROAD SPACE
ROAD SYSTEM
ROAD TRAFFIC
ROAD USERS
ROAD VEHICLES
ROUTE
SUBURBAN RAIL
SUBURBS
SUBWAY
SUBWAY SYSTEM
SUSTAINABLE TRANSPORT
TOLL
TOLL REVENUES
TOLLS
TRAFFIC
TRAFFIC ACCIDENTS
TRAFFIC CONGESTION
TRAFFIC DELAYS
TRAFFIC ENGINEERING
TRAFFIC SPEEDS
TRAINS
TRANSIT BUS
TRANSIT FARES
TRANSIT IMPROVEMENTS
TRANSIT MILEAGE
TRANSIT OPERATORS
TRANSIT OPTIONS
TRANSIT PATRONAGE
TRANSIT STOPS
TRANSIT SYSTEM
TRANSIT TRAVEL
TRANSIT VEHICLE
TRANSIT VEHICLE OCCUPANCY
TRANSIT VEHICLES
TRANSPORT
TRANSPORT INFRASTRUCTURE
TRANSPORT MODES
TRANSPORT NETWORK
TRANSPORT SECTOR
TRANSPORT SYSTEM
TRANSPORTATION
TRANSPORTATION INFRASTRUCTURE
TRANSPORTATION POLICIES
TRANSPORTATION PRICING
TRANSPORTATION SYSTEM
TRANSPORTATION SYSTEMS
TRAVEL DEMAND
TRAVEL MODE
TRAVEL MODES
TRAVEL SPEED
TRAVEL TIME
TRAVEL TIMES
TRAVELERS
TRIP
TROLLEY BUS
URBAN PASSENGER
URBAN PASSENGER TRAVEL
URBAN TRANSPORTATION
VEHICLE
VEHICLE COLLISIONS
VEHICLE CRASHES
VEHICLE EMISSION
VEHICLE FLEET
VEHICLE FUEL
VEHICLE FUEL ECONOMY
VEHICLE MILEAGE
VEHICLE MILES
VEHICLE OCCUPANCIES
VEHICLE OPERATING
VEHICLE OPERATING COSTS
VEHICLE OPERATION
VEHICLE SPEED
VEHICLE TRAVEL
spellingShingle ACCIDENT COSTS
ACCIDENT EXTERNALITIES
ACCIDENT RATES
ACCIDENTS
AIR
AIR POLLUTION
AIR QUALITY STANDARDS
ALTERNATIVE TRANSPORTATION
ALTERNATIVE TRANSPORTATION MODES
ALTERNATIVE TRAVEL
ALTERNATIVE TRAVEL MODES
AUTO PASSENGER
AUTO PRODUCTION
AUTO TRAVEL
AUTO USE
AUTOMOBILE
AUTOMOBILE CONGESTION
AUTOMOBILE MILEAGE
AUTOMOBILE TRAVEL
AUTOMOBILE USE
AUTOMOBILES
AVERAGE TRAVEL TIME
AVERAGE VEHICLE FUEL ECONOMY
BAGGAGE
BUS FARE
BUS MILEAGE
BUS PASS
BUS PASSENGER
BUS SYSTEM
BUS TRANSIT
BUS TRAVEL
BUSES
CAPITAL INVESTMENTS
CAR
CAR OWNERSHIP
CARBON CONTENT
CARS
CLIMATE CHANGE
COMMUTER RAIL
CONGESTION CHARGES
CONGESTION COSTS
CONGESTION DECLINES
CONGESTION EXTERNALITIES
CONGESTION PRICING
CONGESTION PROBLEMS
CONGESTION TOLLS
COST OF TRAFFIC
COST OF TRAVEL
COSTS OF ROAD CONGESTION
COSTS OF TRAFFIC ACCIDENTS
COSTS OF TRAVEL
COSTS PER PASSENGER MILE
DEMAND FOR TRANSPORTATION
DIESEL
DIESEL FUEL
DRIVERS
DRIVING
DRIVING COSTS
ELASTICITY
EMISSION
EMISSION RATES
EMISSIONS
EMISSIONS PER PASSENGER
ENVIRONMENTAL COSTS
EXCISE TAX
EXCISE TAX ON GASOLINE
EXTERNALITIES
FARE ELASTICITIES
FARE REDUCTIONS
FARE SUBSIDIES
FARES
FIXED COSTS
FUEL
FUEL COSTS
FUEL EXTERNALITIES
FUEL PRICE
FUEL PRICE ELASTICITIES
FUEL PRICES
FUEL PRODUCTION
FUEL TAX
FUEL TAX INCREASE
FUEL TAX INCREASES
FUEL TAX PAYMENTS
FUEL TAX REVENUES
FUEL TAXATION
FUEL TAXES
FUEL USE
FUELS
FUGITIVE EMISSIONS
GASOLINE
GASOLINE CONSUMPTION
GASOLINE EXCISE
GASOLINE PRICE
GASOLINE PRICES
GASOLINE TAX
GASOLINE TAXES
GASOLINE USE
GLOBAL CLIMATE CHANGE
GREENHOUSE GASES
HEAVY RAIL
HEAVY RAIL COMMUTER
HIGHWAY
IMPLICATIONS FOR TRANSPORTATION
INFRASTRUCTURE INVESTMENT
INJURY
INTERCITY RAIL
INVESTMENT IN ROADS
LIGHT RAIL
LOAD FACTORS
LOCAL AIR POLLUTION
LOCAL AIR QUALITY
LONG-DISTANCE
LONG-DISTANCE TRAVEL
MARGINAL EXTERNAL COST
MARGINAL EXTERNAL COSTS
MASS TRANSIT
MILEAGE
MILEAGE REDUCTIONS
MILES PER CAPITA
MODAL SHARES
MOTORISTS
ODOMETER
PASSENGER OCCUPANCY
PASSENGER TRAVEL
PASSENGER VEHICLES
PASSENGERS
PEAK TRAVEL
PEDESTRIANS
POLLUTION CONCENTRATIONS
POLLUTION COSTS
POLLUTION DAMAGES
POLLUTION REDUCTION
PRICE CHANGES
PRICE ELASTICITIES
PRICE ELASTICITY
PRICE ELASTICITY OF GASOLINE
PRICE OF FUEL
PRICE OF GASOLINE
PRIVATE VEHICLE
PUBLIC ROADS
PUBLIC TRANSIT
PUBLIC TRANSPORT
PUBLIC TRANSPORTATION
RAIL CAR
RAIL FARES
RAIL LINKS
RAIL PASSENGER
RAIL PROJECTS
RAIL SERVICE
RAIL SYSTEMS
RAIL TRAVEL
RAILWAY
RAILWAY SYSTEM
RAILWAYS
RAPID BUS
ROAD
ROAD CONGESTION
ROAD EXPANSION
ROAD SPACE
ROAD SYSTEM
ROAD TRAFFIC
ROAD USERS
ROAD VEHICLES
ROUTE
SUBURBAN RAIL
SUBURBS
SUBWAY
SUBWAY SYSTEM
SUSTAINABLE TRANSPORT
TOLL
TOLL REVENUES
TOLLS
TRAFFIC
TRAFFIC ACCIDENTS
TRAFFIC CONGESTION
TRAFFIC DELAYS
TRAFFIC ENGINEERING
TRAFFIC SPEEDS
TRAINS
TRANSIT BUS
TRANSIT FARES
TRANSIT IMPROVEMENTS
TRANSIT MILEAGE
TRANSIT OPERATORS
TRANSIT OPTIONS
TRANSIT PATRONAGE
TRANSIT STOPS
TRANSIT SYSTEM
TRANSIT TRAVEL
TRANSIT VEHICLE
TRANSIT VEHICLE OCCUPANCY
TRANSIT VEHICLES
TRANSPORT
TRANSPORT INFRASTRUCTURE
TRANSPORT MODES
TRANSPORT NETWORK
TRANSPORT SECTOR
TRANSPORT SYSTEM
TRANSPORTATION
TRANSPORTATION INFRASTRUCTURE
TRANSPORTATION POLICIES
TRANSPORTATION PRICING
TRANSPORTATION SYSTEM
TRANSPORTATION SYSTEMS
TRAVEL DEMAND
TRAVEL MODE
TRAVEL MODES
TRAVEL SPEED
TRAVEL TIME
TRAVEL TIMES
TRAVELERS
TRIP
TROLLEY BUS
URBAN PASSENGER
URBAN PASSENGER TRAVEL
URBAN TRANSPORTATION
VEHICLE
VEHICLE COLLISIONS
VEHICLE CRASHES
VEHICLE EMISSION
VEHICLE FLEET
VEHICLE FUEL
VEHICLE FUEL ECONOMY
VEHICLE MILEAGE
VEHICLE MILES
VEHICLE OCCUPANCIES
VEHICLE OPERATING
VEHICLE OPERATING COSTS
VEHICLE OPERATION
VEHICLE SPEED
VEHICLE TRAVEL
Parry, Ian W. H.
Timilsina, Govinda R.
Pricing Externalities from Passenger Transportation in Mexico City
geographic_facet Latin America & Caribbean
Latin America & Caribbean
North America
America
Mexico
relation Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5071
description The Mexico City Metropolitan Area has been suffering severely from transportation externalities such as accidents, air pollution, and traffic congestion. This study examines pricing instruments to reduce these externalities using an analytical and numerical model. The study shows that the optimal levels of a gasoline tax and a congestion toll on automobiles could generate social benefits, measured in terms of welfare gain, of US$132 and US$109 per capita, respectively, through the reduction of externalities. The largest component of the welfare gains comes from reduced congestion, followed by local air pollution reduction. The optimal toll and tax would, however, double the cost of driving and could be politically sensitive. Still, more than half of those welfare gains could be obtained through a more modest tax or toll, equivalent to $1 per gallon of gasoline. The welfare gains from reforming the pricing of public transportation are small relative to those from reforming the taxation of automobiles. Although the choice among travel modes depends on specific circumstances, in the absence of road travel pricing that accounts for externalities, there will be potential for higher investment in roads relative to mass transit. Given the rapidly increasing demand for transportation infrastructure in Mexico City, careful efforts should be made to include the full social costs of travel in evaluating alternative infrastructure investments.
format Publications & Research :: Policy Research Working Paper
author Parry, Ian W. H.
Timilsina, Govinda R.
author_facet Parry, Ian W. H.
Timilsina, Govinda R.
author_sort Parry, Ian W. H.
title Pricing Externalities from Passenger Transportation in Mexico City
title_short Pricing Externalities from Passenger Transportation in Mexico City
title_full Pricing Externalities from Passenger Transportation in Mexico City
title_fullStr Pricing Externalities from Passenger Transportation in Mexico City
title_full_unstemmed Pricing Externalities from Passenger Transportation in Mexico City
title_sort pricing externalities from passenger transportation in mexico city
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091009143814
http://hdl.handle.net/10986/4263
_version_ 1764390651427815424
spelling okr-10986-42632021-04-23T14:02:16Z Pricing Externalities from Passenger Transportation in Mexico City Parry, Ian W. H. Timilsina, Govinda R. ACCIDENT COSTS ACCIDENT EXTERNALITIES ACCIDENT RATES ACCIDENTS AIR AIR POLLUTION AIR QUALITY STANDARDS ALTERNATIVE TRANSPORTATION ALTERNATIVE TRANSPORTATION MODES ALTERNATIVE TRAVEL ALTERNATIVE TRAVEL MODES AUTO PASSENGER AUTO PRODUCTION AUTO TRAVEL AUTO USE AUTOMOBILE AUTOMOBILE CONGESTION AUTOMOBILE MILEAGE AUTOMOBILE TRAVEL AUTOMOBILE USE AUTOMOBILES AVERAGE TRAVEL TIME AVERAGE VEHICLE FUEL ECONOMY BAGGAGE BUS FARE BUS MILEAGE BUS PASS BUS PASSENGER BUS SYSTEM BUS TRANSIT BUS TRAVEL BUSES CAPITAL INVESTMENTS CAR CAR OWNERSHIP CARBON CONTENT CARS CLIMATE CHANGE COMMUTER RAIL CONGESTION CHARGES CONGESTION COSTS CONGESTION DECLINES CONGESTION EXTERNALITIES CONGESTION PRICING CONGESTION PROBLEMS CONGESTION TOLLS COST OF TRAFFIC COST OF TRAVEL COSTS OF ROAD CONGESTION COSTS OF TRAFFIC ACCIDENTS COSTS OF TRAVEL COSTS PER PASSENGER MILE DEMAND FOR TRANSPORTATION DIESEL DIESEL FUEL DRIVERS DRIVING DRIVING COSTS ELASTICITY EMISSION EMISSION RATES EMISSIONS EMISSIONS PER PASSENGER ENVIRONMENTAL COSTS EXCISE TAX EXCISE TAX ON GASOLINE EXTERNALITIES FARE ELASTICITIES FARE REDUCTIONS FARE SUBSIDIES FARES FIXED COSTS FUEL FUEL COSTS FUEL EXTERNALITIES FUEL PRICE FUEL PRICE ELASTICITIES FUEL PRICES FUEL PRODUCTION FUEL TAX FUEL TAX INCREASE FUEL TAX INCREASES FUEL TAX PAYMENTS FUEL TAX REVENUES FUEL TAXATION FUEL TAXES FUEL USE FUELS FUGITIVE EMISSIONS GASOLINE GASOLINE CONSUMPTION GASOLINE EXCISE GASOLINE PRICE GASOLINE PRICES GASOLINE TAX GASOLINE TAXES GASOLINE USE GLOBAL CLIMATE CHANGE GREENHOUSE GASES HEAVY RAIL HEAVY RAIL COMMUTER HIGHWAY IMPLICATIONS FOR TRANSPORTATION INFRASTRUCTURE INVESTMENT INJURY INTERCITY RAIL INVESTMENT IN ROADS LIGHT RAIL LOAD FACTORS LOCAL AIR POLLUTION LOCAL AIR QUALITY LONG-DISTANCE LONG-DISTANCE TRAVEL MARGINAL EXTERNAL COST MARGINAL EXTERNAL COSTS MASS TRANSIT MILEAGE MILEAGE REDUCTIONS MILES PER CAPITA MODAL SHARES MOTORISTS ODOMETER PASSENGER OCCUPANCY PASSENGER TRAVEL PASSENGER VEHICLES PASSENGERS PEAK TRAVEL PEDESTRIANS POLLUTION CONCENTRATIONS POLLUTION COSTS POLLUTION DAMAGES POLLUTION REDUCTION PRICE CHANGES PRICE ELASTICITIES PRICE ELASTICITY PRICE ELASTICITY OF GASOLINE PRICE OF FUEL PRICE OF GASOLINE PRIVATE VEHICLE PUBLIC ROADS PUBLIC TRANSIT PUBLIC TRANSPORT PUBLIC TRANSPORTATION RAIL CAR RAIL FARES RAIL LINKS RAIL PASSENGER RAIL PROJECTS RAIL SERVICE RAIL SYSTEMS RAIL TRAVEL RAILWAY RAILWAY SYSTEM RAILWAYS RAPID BUS ROAD ROAD CONGESTION ROAD EXPANSION ROAD SPACE ROAD SYSTEM ROAD TRAFFIC ROAD USERS ROAD VEHICLES ROUTE SUBURBAN RAIL SUBURBS SUBWAY SUBWAY SYSTEM SUSTAINABLE TRANSPORT TOLL TOLL REVENUES TOLLS TRAFFIC TRAFFIC ACCIDENTS TRAFFIC CONGESTION TRAFFIC DELAYS TRAFFIC ENGINEERING TRAFFIC SPEEDS TRAINS TRANSIT BUS TRANSIT FARES TRANSIT IMPROVEMENTS TRANSIT MILEAGE TRANSIT OPERATORS TRANSIT OPTIONS TRANSIT PATRONAGE TRANSIT STOPS TRANSIT SYSTEM TRANSIT TRAVEL TRANSIT VEHICLE TRANSIT VEHICLE OCCUPANCY TRANSIT VEHICLES TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT MODES TRANSPORT NETWORK TRANSPORT SECTOR TRANSPORT SYSTEM TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRANSPORTATION POLICIES TRANSPORTATION PRICING TRANSPORTATION SYSTEM TRANSPORTATION SYSTEMS TRAVEL DEMAND TRAVEL MODE TRAVEL MODES TRAVEL SPEED TRAVEL TIME TRAVEL TIMES TRAVELERS TRIP TROLLEY BUS URBAN PASSENGER URBAN PASSENGER TRAVEL URBAN TRANSPORTATION VEHICLE VEHICLE COLLISIONS VEHICLE CRASHES VEHICLE EMISSION VEHICLE FLEET VEHICLE FUEL VEHICLE FUEL ECONOMY VEHICLE MILEAGE VEHICLE MILES VEHICLE OCCUPANCIES VEHICLE OPERATING VEHICLE OPERATING COSTS VEHICLE OPERATION VEHICLE SPEED VEHICLE TRAVEL The Mexico City Metropolitan Area has been suffering severely from transportation externalities such as accidents, air pollution, and traffic congestion. This study examines pricing instruments to reduce these externalities using an analytical and numerical model. The study shows that the optimal levels of a gasoline tax and a congestion toll on automobiles could generate social benefits, measured in terms of welfare gain, of US$132 and US$109 per capita, respectively, through the reduction of externalities. The largest component of the welfare gains comes from reduced congestion, followed by local air pollution reduction. The optimal toll and tax would, however, double the cost of driving and could be politically sensitive. Still, more than half of those welfare gains could be obtained through a more modest tax or toll, equivalent to $1 per gallon of gasoline. The welfare gains from reforming the pricing of public transportation are small relative to those from reforming the taxation of automobiles. Although the choice among travel modes depends on specific circumstances, in the absence of road travel pricing that accounts for externalities, there will be potential for higher investment in roads relative to mass transit. Given the rapidly increasing demand for transportation infrastructure in Mexico City, careful efforts should be made to include the full social costs of travel in evaluating alternative infrastructure investments. 2012-03-19T19:12:51Z 2012-03-19T19:12:51Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091009143814 http://hdl.handle.net/10986/4263 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5071 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean North America America Mexico