Abstract

We investigate the relationship between interstate highways and highway vehicle kilometers traveled (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.


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The different versions of the original document can be found in:

http://www.aeaweb.org/aer/data/oct2011/20081274_data.zip
http://dx.doi.org/10.1257/aer.101.6.2616
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1478794&rec=1&srcabs=997087&alg=7&pos=7,
https://core.ac.uk/display/101069870,
https://pubs.aeaweb.org/doi/10.1257/aer.101.6.2616,
http://www.ademloos.be/sites/default/files/meccano_docs/The_Fundamental_Law_of_Road_Congestion_Evidence_from_US_Cities.pdf,
https://trid.trb.org/view.aspx?id=1124678,
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http://m.nber.org/papers/w15376,
https://academic.microsoft.com/#/detail/2133618009
https://www.economics.utoronto.ca/public/workingPapers/tecipa-370-1.pdf


DOIS: 10.1257/aer.101.6.2616 10.3386/w15376

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Published on 01/01/2011

Volume 2011, 2011
DOI: 10.1257/aer.101.6.2616
Licence: CC BY-NC-SA license

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