Behavioral adjustments and equity effects of congestion pricing: Analysis of morning commutes during the Stockholm Trial

This paper assesses the horizontal and vertical equity effects of the Stockholm Trial with Congestion Pricing for morning commuters, in terms of both travel behavioral adjustments and welfare effects, as a result of the toll’s direct effects and the behavioral adjustments. We consider specifically two behavioral adjustments: mode choice and departure time choice. Initial car drivers crossing the toll cordon had a 15 percentage-points higher rate of switching to public transit as compared with those not crossing the cordon. We also find some evidence of peak spreading, in particular toward a later departure time, as a result of the charging scheme, but most people choose a departure time within 15 min both before and during the trial. In the welfare analysis, we found no clear pattern of increasing burden by either increasing income or decreasing income, and the increase in the Gini Coefficient was insignificant. We also found no significant difference in either the mode-switching behavior or the average welfare effect for women versus for men.     

Measuring the equity effects of a carbon charge on car commuters: A case study of Manchester Airport

This papers attempts to quantify the equity effect of a hypothesized economic instrument, a carbon charge on car commuters, for reducing carbon dioxide emissions produced by commuters on airport surface access. Manchester Airport is taken as a case study using staff Survey data from 2008 and 2010. Consumer welfare change is analysed for measuring the equity effects of carbon charge by user group, which considers the changes of travel mode choice, the carbon dioxide emissions reduction, the revenue from a carbon charge and how it is distributed. First, the individual carbon footprint in terms of gram passenger kilometre, and the damage cost of carbon by commuters on airport surface access are estimated. Next, the impact of carbon charge on travel behaviour is investigated by the nested logit model. Finally, the net effect of carbon charges is assessed by travel mode user, gender, job type, and age group. The results show some impacts of the carbon charge on car users and carbon reduction, and the positive effects on lower income group and less carbon commuters. The quantified results provide the evidences for the mitigation policies to combine monetary incentives with disincentives for travel behaviour change, and demonstrate the different equity effects among commuter groups.     

Design of income-equitable toll prices for high occupancy toll lanes in a single toll facility

Income inequity potentially exists under high occupancy toll (HOT) lanes whereby higher-income travelers may reap the benefits of the facility. An income-based multi-toll pricing approach is proposed for a single HOT lane facility in a network to maximize simultaneously the toll revenue and address the income equity concern, while ensuring a minimum level-of-service on the HOT lanes and that the toll prices do not exceed pre-specified thresholds. The problem is modeled as a bi-level optimization formulation. The upper level model maximizes revenue for the tolling authority subject to pre-specified upper bounds on tolls. The lower level model solves the stochastic user equilibrium problem. An agent-based solution approach is used to determine the toll prices by considering the tolling authority and commuters as agents. Results from numerical experiments indicate that a multi-toll pricing scheme is more equitable and can yield higher revenues compared to a single toll price scheme across travelers.     

How much is too much for tolled road users: Toll saturation and the implications for car commuting value of travel time savings?

The current practice of forecasting the demand for new tolled roads typically assumes that car users are prepared to pay a higher toll for a shorter journey, and they will keep doing so as long as the toll cost is not higher than their current value of travel time savings. Practice ignores the possibility that there could be a point when motorists stop driving on toll roads due to a toll budget constraint. The unconstrained toll budget assumption may be valid in networks where the addition of a new toll road does not result in a binding budget constraint that car users may have for using toll roads (although it could also be invoked for existing tolled routes through a reduction in use of a tolled route). In a road network like Sydney which offers a growing number of (linked) tolled roads, the binding budget constraint may be invoked, and hence including additional toll links might in turn reduce the car users’ willingness to pay for toll roads to save the same amount of travel time. When this occurs, car users are said to reach a toll saturation point (or threshold) and begin to consider avoiding one or more toll roads. Whilst toll saturation has important implications for demand forecasting and planning of toll roads, this type of behaviour has not been explored in the literature. We investigate the influence that increasing toll outlays has on preferences of car commuters to use one or more tolled roads as the number of tolled roads increases. The Sydney metropolitan area offers a unique laboratory to test this phenomenon, with nine tolled roads currently in place and another five in planning. The evidence supports the hypothesis that the value of travel time savings decreases as a consequence of toll saturation.     

Welfare effects of congestion pricing in Singapore

This paper examines the Singapore Area License Scheme. Changes in scheduling and choices of transportation mode by commuters are discussed. Although the toll is shown to reduce travel times for many commuters, many commuters are shown to incur scheduling costs as a result of the toll. Using estimated parameters of an indirect utility function, welfare functions are computed to compare welfare levels prior to, and just after, the toll was put into place. The evidence suggests that the toll may have reduced welfare.     

Traffic rationing and pricing in a linear monocentric city

This paper presents a simple spatial equilibrium model for a linear monocentric city to investigate the effects of rationing and pricing on morning commuters' travel cost and modal choice behavior in each location. Under rationing and pricing, every day in the morning peak hour, each commuter is classified as either “free” or “rationed”. “Free” commuters are allowed to use the highway without paying the toll, whereas “rationed” commuters can avoid the toll only if they travel by transit. Each day, a fraction of commuters are rationed in their free use of the highway, and the rationing fractions are determined systematically so that everyone is equally rationed in a given period. It is found that Pareto‐improving rationing and pricing scheme might be obtained as a combination of the rationing degree and the toll associated with rationing. Extension to the rationing and pricing scheme with cordon and park‐and‐ride service has been made. Cordon and park‐and‐ride might help in improving the efficiency of rationing and pricing strategy although remains its Pareto‐improving property. Copyright © 2012 John Wiley & Sons, Ltd.     

Predicting electronic toll collection service adoption: An integration of the technology acceptance model and the theory of planned behavior

In order to reduce the number of vehicles stuck in congestion, especially for stop-and-go traffic at toll plazas, the establishment of electronic toll collection (ETC) systems has been a hot issue and dominant trend in many countries. Taiwan has joined the crowd, adding an ETC system to its toll roads in early 2006. However, despite the potential benefits for motorists, the utilization rate has been lower than expected during the introductory stage. The objective of this study is to advance our understanding on the critical antecedents of motorists’ intention of ETC service adoption by integrating both technology acceptance model (TAM) and theory of planned behavior (TPB) perspectives. Through empirical data collection and analysis from highway motorists who had not installed on-board units (OBU) for ETC service in Taiwan, we found that system attributes, perceived usefulness and perceived ease of use, indeed, positively engender motorists’ attitudes towards ETC service adoption. Moreover, results also reveal that attitude, subjective norm and perceived behavioral control positively influence the intention of ETC system adoption. Implications for practitioners and researchers, and suggestions for future research are also addressed in this study.     

The persevering commuter – Duration of long-distance commuting

A growing number of people are long-distance commuters. For some long-distance commuting is a temporary solution, while as for others it can be a more long-term strategy to promote career and income. This study addresses duration of long-distance commuting – 30 km or more between home and work – in Sweden, and what characterizes individuals who commute for shorter or longer periods. The effects of long-distance commuting in terms of economic outcome for both partners in a commuter household are analysed. The study is based on register data for the years 1995–2005 covering all long-distance commuters in Sweden. One finding is that previous experience of long-distance commuting makes it more likely to have a long duration of long-distance commuting. In addition economic incentives, such as a higher income, are positively correlated for continuing to long-distance commuting more than a few years. Furthermore, the analysis shows that male commuters benefit more in terms of economic outcome of long-distance commuting. It is concluded that the trend with increasing long-distance commuting can sustain not only gender differences on the labour market but also within households. Finally, the paper indicates that long-distance commuting is a strategic mobility choice for households, rather than a short-term solution for a few years.     

Auction-based tolling systems in a connected and automated vehicles environment: Public opinion and implications for toll revenue and capacity utilization

Autonomous and connected vehicles are expected to enable new tolling mechanisms, such as auction-based tolls, for allocating the limited roadway capacity. This research examines the public perception of futuristic auction-based tolling systems, with a focus on the public acceptance of such systems over current tolling practices on highways (e.g., dynamic and fixed tolling methodologies). Through a stated-preference survey, responses from 159 road-users residing in Virginia are elicited to understand route choice behavior under a descending price auction implemented on a hypothetical two-route network. Analysis of the survey data shows that there is no outright rejection of the presented auction-based tolling among those who are familiar with the current tolling methods. While males strongly support the new method, no clear pattern emerges among other demographic variables such as income and education level, and age. While high income respondents and regular commuters are more likely to pay higher tolls, no statistical significance between different genders, age groups, household sizes, and education levels is found. Based on the modeling results and the hypothetical road network, it is found that descending price tolling method yields higher average toll rates, and generates at least 70% more revenue when travel time saving is 30 min, and improves capacity utilization of the toll road significantly compared to fixed tolls.     

On the existence of pricing strategies in the discrete time heterogeneous single bottleneck model

In this paper, we study the pricing strategies in the discrete time single bottleneck model with general heterogeneous commuters. We first prove that in the system optimal assignment, the queue time must be zero for all the departures. Based on this result, the system optimal problem is formulated as a linear program. The solution existence and uniqueness are discussed. Applying linear programming duality, we then prove that the optimal dual variable values provide an optimal toll with which the system optimal solution is also an equilibrium solution. Extensive computational results are reported to demonstrate the insights gained from the formulations in this paper. These results confirm that a system optimal equilibrium can be found using the proposed approach.     

Employment suburbanisation, reverse commuting and travel behaviour by residents of the central city in the Paris metropolitan area

This paper analyses the relationship between employment suburbanisation in the Paris metropolitan area, the growth of reverse commuting and changes in the weekday travel behaviour of working residents of the central city over a 20-year period. The results show that the number of reverse commuters has significantly increased because the municipality of Paris has lost many jobs but few working residents whilst employment has developed in the suburbs. Reverse commuters are mainly and increasingly high-income professionals whose workplace is located close to the central city in employment sub-centres that are well served by public transport. Consequently reverse commuters have lower than average car use although differences exist and are related to their professional status. The policy implications of these findings are discussed in the conclusion.     

Time-dependent area-based pricing for multimodal systems with heterogeneous users in an agent-based environment

In this paper, we investigate an area-based pricing scheme for congested multimodal urban networks with the consideration of user heterogeneity. We propose a time-dependent pricing scheme where the tolls are iteratively adjusted through a Proportional–Integral type feedback controller, based on the level of vehicular traffic congestion and traveler’s behavioral adaptation to the cost of pricing. The level of congestion is described at the network level by a Macroscopic Fundamental Diagram, which has been recently applied to develop network-level traffic management strategies. Within this dynamic congestion pricing scheme, we differentiate two groups of users with respect to their value-of-time (which related to income levels). We then integrate incentives, such as improving public transport services or return part of the toll to some users, to motivate mode shift and increase the efficiency of pricing and to attain equitable savings for all users. A case study of a medium size network is carried out using an agent-based simulator. The developed pricing scheme demonstrates high efficiency in congestion reduction. Comparing to pricing schemes that utilize similar control mechanisms in literature which do not treat the adaptivity of users, the proposed pricing scheme shows higher flexibility in toll adjustment and a smooth behavioral stabilization in long-term operation. Significant differences in behavioral responses are found between the two user groups, highlighting the importance of equity treatment in the design of congestion pricing schemes. By integrating incentive programs for public transport using the collected toll revenue, more efficient pricing strategies can be developed where savings in travel time outweigh the cost of pricing, achieving substantial welfare gain.     

Stable ride-sharing matching for the commuters with payment design

Ride-sharing enables reduction of private car usage for commuting. This paper proposes a stable matching model for the ride-sharing which aims to minimize the travel cost of all commuters. A payment for the ride-sharing is designed considering the equity and incentive. An algorithm based on the deferred acceptance algorithm is proposed for the model. To verify the model and algorithm, cases with different scales are presented based on Dalian. The results illustrate that the compensation, time window and driver-to-rider ratios can affect the successful matching rate.

     

Pricing scheme design of ridesharing program in morning commute problem

This paper examines the dynamic user equilibrium of the morning commute problem in the presence of ridesharing program. Commuters simultaneously choose departure time from home and commute mode among three roles: solo driver, ridesharing driver, and ridesharing rider. Considering the congestion evolution over time, we propose a time-varying compensation scheme to maintain a positive ridesharing ridership at user equilibrium. To match the demand and the supply of ridesharing service over time, the compensation scheme should be set according to the inconvenience cost functions and the out-of-pocket cost functions. When the price charged per time unit is higher than the inconvenience cost per time unit perceived by the ridesharing drivers, the ridesharing participants will travel at the center of peak hours and solo drivers will commute at the two tails. Within the feasible region with positive ridership, the ridesharing program can reduce the congestion and all the commuters will be better off. To support system optimum (SO), we derive a time-varying toll combined with a flat ridesharing price from eliminating queuing delay. Under SO toll, the ridesharing program can attract more participants and have an enlarged feasible region. This reveals that the commuters are more tolerant to the inconvenience caused by sharing a ride at SO because of the lower travel time. Compared with no-toll equilibrium, both overall congestion and individual travel cost are further reduced at SO.     

Commuters’ willingness-to-pay for improvement of transfer facilities in and around metro stations – A case study in Kolkata

Although several cities in India are developing the metro system, there are lacunas associated with transfer facilities in and around metro stations. The present work aims to investigate the perception of commuters of Kolkata city, India in terms of their willingness-to-pay (WTP) for improvement of transfer facilities. A stated preference survey instrument was designed to collect choice responses from metro commuters and the database was analysed by developing random parameter logit (RPL) models. The decomposition effects of various socioeconomic and trip characteristics on mean estimates were also investigated in random parameter logit models with heterogeneity. The work indicates significantly high WTP of metro commuters as compared to the average metro fare for improvement of various qualitative attributes of transfer facility such as ‘facility for level change’, ‘visual communication’, ‘pedestrian crossing’, and ‘pedestrian environment’. The WTP values are also found to vary across different groups of commuter formed on the basis of ‘trip purpose’, ‘monthly household income’, ‘station type’ and ‘metro fare’. ‘Work trip’ commuters are found to have higher WTP for improvement of access time, pedestrian environment and use of an escalator over the elevator. On the other hand, ‘high-income group’ commuters have shown higher WTP for improvement of access time, pedestrian crossing, and pedestrian environment. While ‘high fare group’ commuters have higher WTP for access time and pedestrian environment, heterogeneity is also observed in WTP for facility for level change, pedestrian crossing, and pedestrian environment across commuters using different ‘station type’ (underground, at-grade, and elevated). The findings from the study provide a basis for formulating policies for the improvement of transfer facilities in and around metro stations giving due attention to the preference of commuters having different socioeconomic and trip characteristics.     

Metropolitan sprawl measurement and its impacts on commuting trips and road emissions

This study measures urban form as indicators of metropolitan sprawl and explores its impact on commuting trips and NO_x and CO₂ emissions from road traffic in all metropolitan statistical areas (MSAs) and four groups’ MSAs separated by population in the continental United States. Encompassing all MSAs, the study adds the accessibility factor to four existing factors: density, land use mix, centeredness, and street connectivity. The study establishes multivariate regression models between urban form, commuting trips, and emissions from road traffic while controlling for socioeconomic conditions. The study shows that urban form index and five urban form factors have a statistically significant association with commuting trips, NO_x and CO₂ emissions from road traffic. In four MSA groups as determined by MSA population size, higher values of urban form factors (i.e., lower sprawl) are statistically associated with more walking commuters. On the other hand, higher values of urban form factors are associated with fewer commuting vehicles per household in large MSAs with the moderate effect, a lower average commuting drive time in medium and small MSAs, and more commuters using public transportation in medium and large MSAs. This study provides an urban form index covering all metropolitan areas in the continental United States by adding another urban form factor, and the findings show that urban form factors have different effects on mode choices, drive time, and emission from road traffic depending on the MSA population size.     

Overcoming public aversion to congestion pricing

We have completed a survey of Southern California residents designed to examine whether the details of policy design can make congestion pricing more attractive to the motoring public. A congestion fee proposal is often regarded as simply a tax increase; also, especially in the US, motorists apparently regard the use of congestion fees as coercive, in that they often have few if any practical alternatives to paying the fee. Unlike most opinion surveys on congestion pricing, our survey was quite explicit about the fate of the collected revenues. For example, we presented respondents with policies that returned a substantial portion of the revenues to the public, either in the form of cash (through reductions in sales taxes and vehicle registration fees or through income tax credits) or in the form of coupons to be used for vehicle emissions equipment repair, transit, and the like. In addition, we examined whether the typically intense opposition to congestion pricing if applied only to a part of a roadway, leaving the motorist free to choose between free lanes and toll lanes. We find that a promise to offset the imposition of congestion fees by other taxes can result in a 7% point increase in support for congestion pricing policies, and the restriction of congestion pricing to a single lane on a freeway attracts from 9% to 17% points of additional support.     

Net tax incidence for urban public transit subsidies in New Zealand

This paper examines the impact of policy changes in the funding of New Zealand public transit modes.These changes, introduced in 1983, are evaluated in terms of the net incidence of public transit subsidy assistance, taking into account its source of funding and the income class of those commuters benefiting from the subsidy. The general conclusion is that the net incidence of subsidy assistance remains progressive (i.e., a transfer from high to low income commuters) following the introduction of shared funding on the predominant public transit modes (rail and bus), sourced from income tax (central government) and property tax (regional/local government). However, because of the predominance of medium to high income commuters on rail vis-a-vis bus and the traditional source of funding on these modes in terms of income tax (a progressive tax source) and property tax (a regressive tax source), the degree of progressivity previously associated with public transit subsidies has now substantially reduced.The analysis and opinions expressed in this paper are the responsibility of the author alone and do not purport to represent the views of the Ministry of Transport.     

Cycleways and footpaths: What separation is needed for equivalent air pollution dose between travel modes?

Cycling and walking are being promoted in many urban areas as alternatives to motorised transport for health, environmental, and financial reasons. The reduced congestion and resulting decrease in the overall amount of pollution reduced can be expected to result in health benefits for the community. However, active commuters, due to their increased respiration rates and often increased travel times can expect to receive larger doses of air pollution compared with those using motorised forms of transport. However, given the large dropoff in concentrations away from a road, it can be expected that significant reductions can be achieved even with relatively small increases in separation between the path of cyclists/pedestrians and motor vehicles.This study presents a simple methodology for calculating the separation needed for cyclists and pedestrians to experience the same air pollution dose as car commuters. An example is given based on carbon monoxide (CO) data collected in a field campaign consisting of a car driver, a cyclist and a pedestrian travelling on a 2600 metre loop of road in Auckland. For this case study, the estimated distance from the centreline needed for cyclists and pedestrians to receive an equivalent dose of CO as motorists was found to range from 5.8 to 14.2 m depending on the commuting mode and the dispersion state of the atmosphere at the site. This was equal to a CO concentration reduction of 0.1–0.14 ppm per metre. Recommendations on facility modifications and route selections have been made to make active mode commuting safer.     

Voluntary internalization of speeding externalities with vehicle insurance

High speed is an important determinant of accidents for speeders as well as for other motorists. This paper develops a framework for analyzing instruments that encourage drivers to internalize the full consequences of their behavior with respect to choice of speed using Pay-As-You-Speed (PAYS) insurance, possibly as an extension of Pay-As-You-Drive (PAYD) insurance. We demonstrate how the combination of a Pigovian taxation scheme and PAYS can be designed in a setting involving two principals (the state and an insurance company) that affect the incentives of commuters to choose between driving and other modes of transport and for those that use the car mode to drive carefully. While the government is assumed to maximize overall social efficiency and therefore wants to implement marginal cost pricing, insurance companies do actuarial pricing, i.e. average cost pricing within risk classes that are homogeneous to the degree that the insurers have information about actual behavior. PAYS insurance improves the insurance industry’s possibility to differentiate premiums according to behavior and therefore to target risk classes in a better way than today. Moreover, since our framework is designed to accomplish differentiation by self-selection, compulsory regulation is not necessary, although there may be reason for the government to facilitate the implementation of the new technology.