Congestion pricing, transit subsidies and dedicated bus lanes:

Efcient and
practical solutions to congestion

Leonardo J. Basso, Cristian Angelo Guevara, Antonio Gschwender,

Marcelo Fuster
Civil Engineering Department, Universidad de Chile, Santiago, Chile

Paperwork Summary
Transport Economics Lecturer

OBJECTIVE
Planning possible policies dealing
with modes shared road capacity
through: congestion pricing,transit
subsidies and dedicated bus lanes.
Then, the scenarios are made of
combinations of these policies

Paperwork Summary
Transport Economics Lecturer

EQUATION
Basic equation of modal utility for car (a), bus (b) and bicycle (c)

Total Benefit Cost

Social Welfare

Consumer Surplus
financial
result of the
bus
system

congestion
pricing
revenues

Paperwork Summary
Transport Economics Lecturer

MODEL SCENARIO

Scenario 1: Self-financing transit, no congestion pricing, mixedtraffic (base case)

Scenario 2: Transit subsidies, no congestion pricing, mixed-traffic
Scenario 3: Transit subsidies, congestion pricing, mixed-traffic
Scenario 4: Transit subsidies paid for by congestion pricing
revenues, mixed-traffic.
Scenario 5: Self-financing transit, no congestion pricing, dedicated
bus lanes
Scenario 6: Transit subsidies, no congestion pricing, dedicated bus
lanes.
Scenario 7: Transit subsidies, congestion pricing, dedicated bus
lanes.
Scenario 8: Transit subsidies paid for by congestion pricing
revenues, dedicated bus lanes
Paperwork Summary
Transport Economics Lecturer

RESULT