A traffic simulation and assignment model is used to compute the social costs of congestion in five English towns, together with potential road charges. The social costs of congestion are measured by the deadweight loss and computed as the area between the marginal social cost and inverse demand curves between the actual and efficient levels of traffic. Potential road charges are computed as the difference between average private and marginal social costs at the efficient level of traffic, defined as the level at which marginal benefit, given by the inverse demand curve, and marginal cost, are equal. The exercise is done for different demand curves and elasticity values and for different areas within each town. Key words Road pricing, traffic congestion, congestion charges, congestion externality, congestion costs
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