CONGESTION PRICING IMPACT ANALYSIS USING INPUT-OUTPUT MODEL

In this article, we modeled the economic impactsofcongestion pricing policies on micro and macro levels of the economy. On the consumer side of the market, we ran a discrete choice model and examined how travelers behave differently in response to higher driving costs caused by road congestion. While on the macro level, we defined the congestion pricing policyas an exogenous shock on economy and simulated the impacts of this stimulator on several sectors of economy. Results for the case study ofthe Greater New York Metropolitan area shows thata congestion pricing policy on three designated freeways, with a daily flow over 3.5 million vehicles will induce around $0.55 blnincrease in GDP. This growth is caused not only by the expansion of value added items, but also by the direct impact on GDP due to less fuel consumption and consequently less oil imports