Analysis of externalities from transportation in Bogota

Different policies have been implemented in Bogota in the last decades to improve urban mobility. The Bus Rapid Transit system, the car-use restriction and 400 km of bike paths construction are among the examples to be... [ view full abstract ]

Different policies have been implemented in Bogota in the last decades to improve urban mobility. The Bus Rapid Transit system, the car-use restriction and 400 km of bike paths construction are among the examples to be highlighted. Despite these measures, transportation is currently facing different types of problems limiting urban mobility and affecting productivity and quality of life in the city. The growth in motorization rates of private vehicles and motorcycles is associated with more congestion and long travel times. Overcrowding in the mass public transport system during certain periods has negatively affect the quality of the service. And in terms of environmental effects, mobile sources have been identified as the main source of atmospheric emissions. The existence of different kind of externalities, poses an additional challenge, as the solution for one problem can increase other consequences. The aim of this study is to analyze pricing and regulatory options to address traffic congestion and air pollution issues in Bogota. We use a static model to represent the partial equilibrium of the transport market, and evaluate different policies by estimating changes in welfare in comparison with a baseline scenario. Some policy lessons are drawn from the results and analyzed given the local context.