A Spatial CGE Analysis of Road Pricing in the Tokyo Metropolitan Area

Abstract: The Tokyo metropolitan government is studying the possibility of introduction of road pricing. It is considered that road pricing have a large influence on land use, regional economy and transport in the long run. To evaluate these effects, this paper proposes a practical spatial CGE model which can measure impacts of road pricing on location of household and business, regional economy and transport. In the model, businesses are divided into five function categories, and it enables precise estimation of location and trip generation. As results of empirical analyses, it is found that road pricing in central Tokyo decreases road traffic volume in the charge area while it increases traffic on ring roads outside the area. The results also indicate that road pricing increases location of household and business in the charge area, which derives increase in gross regional product in the whole metropolitan area