The Welfare Effects of Congested Road-use Pricing and Redistribution Way

Studying the welfare effect produced from congestion pricing and designing a reasonable revenue redistributing way is one of most important problems in the theoretical and practical field of congested road-use pricing. Based on reviewing the welfare effect of congested road-use pricing, this paper analyzes welfare effect of congested road-use pricing in welfare economic terms, and finds the determined factors affecting choice of travel modes and welfare after congestion pricing. The paper proposes some redistributing ways on congestion road-use pricing revenue according to changes of travelers´ welfare. And we also analyzed the efficiency of different modes according to the proposing rules. The results indicates that choice and welfare effect of travel mode were depended on time value, operating cost of different travel mode, and the revenues are used to improve public transit service may be the most feasible redistribution way.