• Journal of Korean Society of Transportation
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• v.27 no.2
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• pp.145-155
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• 2009

This paper compares the relative performances of area and cordon tolls as opposed to the first-best congestion tolls with respect to alleviation of traffic congestion and social welfare. The comparison is done in the monocentric city where all the jobs are located at the city center. The study shows that the size of charging zones is similar in the two second-bests, but that the optimal toll level is higher in area pricing than in cordon pricing. Area pricing schemes turn out to perform better than cordon pricing schemes as measured by average speeds and daily average travel time. Accordingly, the former is shown to increase the social welfare more than the latter. In the case of the cordon tolls, the residents at the charging zones are exempted from the tolls. In this way, cordon tolls invite people into the most congested areas over the optimal level while partially negating the whole spirit of the congestion tolls.

• Journal of Korean Society of Transportation
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• v.25 no.1 s.94
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• pp.7-21
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• 2007

The purpose of this study is to examine the transportation, equity and efficiency impacts of cordon pricing schemes in the Seoul Capital Region of Korea. Autos would be required to pay a toll of 2.000 Won each time they enter cordons around the CBD or the subcenters during morning peak periods. The imposition of the toll would produce a substantial decrease in traffic volumes within the cordons as well as throughout the Capital Region. The lower the income level of commuters is, the more the share of auto decreases and that of transit increases. For equity impacts, the welfare of commuters would increase or decrease according to the cordon pricing schemes but would produce progressive impacts irrespective of the schemes. However, the commuters who have the highest value of time would experience welfare gains and it would result in regressive impacts. The schemes would result in a substantial net social welfare gain for the efficiency impacts. When the toll is charged at the CBD cordon only, the net social welfare would increase more.