Abstract
This paper examines the effects of toll free policy for expressways which is to be introduced in Japan. A model that is developed by combining a general equilibrium model of a multi-city economy and deterministic user equilibrium traffic assignment model is applied for examining the effects of the toll free policy. Numerical simulations are carried out to examine the effects of the toll free policy on the welfare of households. It is shown that the toll free policy applied to all of the expressways in Hokkaido, Japan brings about the social welfare of 31.2 [billion JPY/year], and that applied to some part of expressways where traffic congestion rarely occurs brings about the social welfare of 41.2 [billion JPY/year].
