TY - JOUR AU - Duranton,Gilles AU - Turner,Matthew A. TI - The Fundamental Law of Road Congestion: Evidence from US cities JF - National Bureau of Economic Research Working Paper Series VL - No. 15376 PY - 2009 Y2 - September 2009 UR - http://www.nber.org/papers/w15376 L1 - http://www.nber.org/papers/w15376.pdf N1 - Author contact info: Gilles Duranton Department of Economics University of Toronto 150 St. George Street Toronto, ON M5S 3G7 CANADA E-Mail: gilles.duranton@utoronto.ca Matthew Turner Department of Economics University of Toronto 150 St. George Street Toronto, ON M5S 3G7 CANADA Tel: 416/978-5110 E-Mail: mturner@chass.utoronto.ca M3 - presented at "SI 2009 Environmental and Energy Economics", July 20-21, 2009 AB - We investigate the relationship between interstate highways and highway vehicle kilometers traveled (VKT) in US cities. We find that VKT increases proportionately to highways and identify three important sources for this extra VKT: an increase in driving by current residents; an increase in transportation intensive production activity; and an inflow of new residents. The provision of public transportation has no impact on VKT. We also estimate the aggregate city level demand for VKT and find it to be very elastic. We conclude that an increased provision of roads or public transit is unlikely to relieve congestion. ER -