Marginal Social Cost Pricing on a Transportation Network: A Comparison of Second-Best Policies

2007 ◽  
Author(s):  
Elena Safirova ◽  
Sébastien Houde ◽  
Winston Harrington
Keyword(s):  
Social Cost ◽  
Transportation Network ◽  
Second Best

scholarly journals The Welfare Impact of Second-Best Uniform-Pigouvian Taxation: Evidence from Transportation

2018 ◽  
Vol 10 (4) ◽  
pp. 211-242 ◽  
Author(s):  
Christopher R. Knittel ◽  
Ryan Sandler
Keyword(s):  
Market Failure ◽  
Social Cost ◽  
Deadweight Loss ◽  
Negative Externalities ◽  
Market Outcomes ◽  
Welfare Impact ◽  
Second Best ◽  
Pigouvian Taxes ◽  
Gasoline Taxes ◽  
Optimal Taxes

When consumers or firms don’t face the true social cost of their actions, market outcomes are inefficient. In the case of negative externalities, Pigouvian taxes are one way to correct this market failure, but it may be infeasible to tax the externality directly. The alternative, taxing a related product, will be second-best. In this paper, we show that in the presence of heterogeneous externalities and elasticities, this type of indirect tax performs poorly. In our empirical application, gasoline taxes to address pollution externalities, less than a third of the deadweight loss of the externality is addressed by second-best optimal taxes. (JEL D62, H21, H23, H71, H76, Q53, R48)

scholarly journals The second-best use of social cost estimates

1996 ◽  
Vol 18 (4) ◽  
pp. 467-489 ◽  
Author(s):  
Dallas Burtraw ◽  
Alan J. Krupnick
Keyword(s):  
Social Cost ◽  
Cost Estimates ◽  
Second Best

Choosing Congestion Pricing Policy

2005 ◽  
Vol 1932 (1) ◽  
pp. 169-177 ◽  
Author(s):  
Elena Safirova ◽  
Kenneth Gillingham ◽  
Winston Harrington ◽  
Peter Nelson ◽  
Abram Lipman
Keyword(s):  
Low Income ◽  
Marginal Cost ◽  
Transportation Network ◽  
Theoretical Models ◽  
Pricing Policy ◽  
Second Best ◽  
Practical Applications ◽  
Welfare Benefits ◽  
Revenue Recycling ◽  
Pricing Schemes

Marginal cost pricing has been long advocated as an efficient way of distributing scarce road resources. In practice, however, policy makers have to retreat to second-best pricing schemes that are associated with lower transaction costs and are simpler for potential users to understand than the first-best marginal cost tolls. To date, the majority of practical applications and theoretical models in Europe and Asia are represented by cordon or area pricing mechanisms, while in North America, variations of link-based tolls have become dominant. This paper compares welfare effects of two second-best cordon pricing schemes with those of second-best link-based tolls for the Washington, D.C., transportation network. START, a strategic and regional transport planning model that features elastic travel demands as well as mode, time period, and route choice, is used to analyze the impacts of the two pricing approaches. Distributional effects of cordon and link-based tolls are also examined in the hope of understanding why one scheme might be preferred over another. Because Washington, D.C., in many respects resembles a European city, cordon policies are more likely to be effective there than in more typical North American cities. Although overall net welfare benefits achieved by the three schemes are found to be similar, their dependence on revenue recycling and distributional impacts are quite different. Although the small cordon puts a higher share of costs on low-income travelers than do other pricing schemes, in absolute terms these costs are lower. The exact distributional impact of a larger cordon is uncertain because it depends on the revenue recycling method employed.

Working With Interpreters to Support Students Who Are English Language Learners

2016 ◽  
Vol 1 (16) ◽  
pp. 15-27 ◽  
Author(s):  
Henriette W. Langdon ◽  
Terry Irvine Saenz
Keyword(s):  
United States ◽  
English Language Learners ◽  
Language Learners ◽  
English Language ◽  
First Language ◽  
The United States ◽  
The Other ◽  
Primary Language ◽  
Second Best ◽  
Support Students

The number of English Language Learners (ELL) is increasing in all regions of the United States. Although the majority (71%) speak Spanish as their first language, the other 29% may speak one of as many as 100 or more different languages. In spite of an increasing number of speech-language pathologists (SLPs) who can provide bilingual services, the likelihood of a match between a given student's primary language and an SLP's is rather minimal. The second best option is to work with a trained language interpreter in the student's language. However, very frequently, this interpreter may be bilingual but not trained to do the job.

Is First Rate Daycare Still Second Best?

1978 ◽  
Vol 23 (1) ◽  
pp. 15-16 ◽  
Author(s):  
ANNA-BETH DOYLE
Keyword(s):  
Second Best

The social cost of materialistic preferences

2014 ◽  
Author(s):  
Ross P. Crothers ◽  
Jacqueline M. Diggs ◽  
Darwin A. Guevarra ◽  
Jia Wei Zhang ◽  
Ryan T. Howell
Keyword(s):  
Social Cost ◽  
The Social
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