Author(s)

P.S. McCarthy

Abstract

Congestion pricing as a feasible transportation demand management policy in the United States is receiving close scrutiny by numerous interested parties including roadspace users, state and federal governments, the public transit industry, and business groups. Although there exist numerous studies analyzing the expected effects of congestion pricing on modal and spatial activities, relatively little work has examined the policy's expected effects on vehicle choice. Based upon a nested logit demand model for fuel efficient vehicles, this paper finds that increased operating costs will shift households' vehicle demands towards more fuel efficient vehicles. If households expect congestion pricing to increase operating costs, the resulting shifts in vehicle demands may offset, to a greater or

Keywords