Congestion in highways when tolls and railroads matter: evidence from European cities

Abstract Using data from the 545 largest European cities, we study whether expansion of their highway capacity provides a solution to problem traffic congestion. Our results confirm that in long run, and line with ‘fundamental law congestion’, cities lane kilometres causes an increase vehicle does not solve urban We disentangle due increases coverage capacity. further introduce road pricing public transit policies order test they moderate findings induced demand is considerably smaller schemes, congestion decreases transportation.