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Abstract for:

The Fundamental Law of Road Congestion: Evidence from US Cities

Gilles  Duranton,  Matthew A.  Turner,  October 2009
Paper No' SERCDP0030: | Full paper (pdf)
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Keywords: highways; vehicle-kilometres traveled, public transport, congestion

JEL Classification: L91; R41

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: SERC Discussion Papers
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Abstract:

We investigate the relationship between interstate highways and highway vehicle kilometres travelled (VKT) in US cities. We find that VKT increases proportionately to highways and identify three important sources for this extra VKT: an increase in driving by current residents; an increase in transportation intensive production activity; and an inflow of new residents. The provision of public transportation has no impact on VKT. We also estimate the aggregate city level demand for VKT and find it to be very elastic. We conclude that an increased provision of roads or public transit is unlikely to relieve congestion and that the current provision of roads exceeds the optimum given the absence of congestion pricing.