OPTIMAL URBAN LAND USE UNDER MULTI-MODAL TRANSPORTATION

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From the viewpoint of global environmental issues, it is urgent to save energy in transport sector as well. There have been several ways proposed for saving energy in urban transportation, such as congestion tax on automobile, utilization of light rail in down towns, and development of battery cars. One of those classic proposals is so-called "park-and-ride" system that we use automobiles from housed to railway station nearby and transfer to railways to CBD, working places. By this way, the private use of automobiles should be reduced so that congestion as well as environmental negative externality in downtown would be improved much.In the literature of urban economics, there is a stream on related issues of railway competition (see Kanemoto 1984 among others), yet it lacked for the environmental viewpoint. While transportation engineers argued the importance of such system, economic implication of the system has not been derived enough.In this reserch, we will develop a simple model of park-and-ride system in urban setting. That is, suppose a monocentric city where several railways start from a single CBD to suburb area spoke-wise, and households use automobiles first from each own house to nearest railway station circumferentially where they transfer to railways bound for CBD, or they may choose to ride private cars to CBD directly. Hence, there are competitions between railways as well as between railway and automobiles in this model. Since direct commuting by automobiles works as "outside good" in monopolistic competition among railway companies those are differentiated in location or space, we follow the model by Salop (1979) that analyses the work of outside good in horizontally differentiated market and obtains perverse characteristics due to the introduction of kinked demand curve.