Error and optimism bias in toll road traffic forecasts

Traffic forecasts are employed in the toll road sector, inter alia, by private sector investors to gauge the bankability of candidate investment projects. Although much is written in the literature about the theory and practice of traffic forecasting, surprisingly little attention has been paid to the predictive accuracy of traffic forecasting models. This paper addresses that shortcoming by reporting the results from the largest study of toll road forecasting performance ever conducted. The author had access to commercial-in-confidence documentation released to project financiers and, over a 4-year period, compiled a database of predicted and actual traffic usage for over 100 international, privately financed toll road projects. The findings suggest that toll road traffic forecasts are characterised by large errors and considerable optimism bias. As a result, financial engineers need to ensure that transaction structuring remains flexible and retains liquidity such that material departures from traffic expectations can be accommodated.

Second best toll and capacity optimisation in networks: solution algorithm and policy implications

This paper looks at the first and second best jointly optimal toll and road capacity investment problems from both policy and technical oriented perspectives. On the technical side, the paper investigates the applicability of the constraint cutting algorithm for solving the second best problem under elastic demand which is formulated as a bilevel programming problem. The approach is shown to perform well despite several problems encountered by our previous work in Shepherd and Sumalee (Netw. Spat. Econ., 4(2): 161–179, 2004). The paper then applies the algorithm to a small sized network to investigate the policy implications of the first and second best cases. This policy analysis demonstrates that the joint first best structure is to invest in the most direct routes while reducing capacities elsewhere. Whilst unrealistic this acts as a useful benchmark. The results also show that certain second best policies can achieve a high proportion of the first best benefits while in general generating a revenue surplus. We also show that unless costs of capacity are known to be low then second best tolls will be affected and so should be analysed in conjunction with investments in the network.

The principles of calibrating traffic microsimulation models

Traffic microsimulation models normally include a large number of parameters that must be calibrated before the model can be used as a tool for prediction. A wave of methodologies for calibrating such models has been recently proposed in the literature, but there have been no attempts to identify general calibration principles based on their collective experience. The current paper attempts to guide traffic analysts through the basic requirements of the calibration of microsimulation models. Among the issues discussed here are underlying assumptions of the calibration process, the scope of the calibration problem, formulation and automation, measuring goodness-of-fit, and the need for repeated model runs.

Toll product preferences and implications for alternative payment options and going cashless

There has been a great deal of research on deriving estimates of the value of travel time savings (VTTS) as a way of converting travel time benefits of toll roads relative to free routes into monetary units, the major user benefit in the development of forecasts of traffic and hence revenue streams. By contrast there has been almost no consideration given to identifying the role that various tollroad products play in establishing preferences for toll routes over non-tolled routes. Increasingly tollroads give users the option to pay by cash at a toll booth, by electronic tolling or by a pre- or post-paid debit and credit account system involving vehicle identification. The efficiency gained by electronic tolling for both the users and the operator have resulted in moves in many jurisdictions to eliminate cash collection entirely (or not introduce it when introducing a new tolled road facility), and to introduce a range of pre- and post-payment options. This has been accompanied by a growing move to distance-based charging in some contexts which is more cumbersome to structure with a cash option. This paper investigates current and potential travellers’ preferences for a range of toll products and how much individual’s are willing to pay for very specific toll products. Data from a stated choice experiment is used in a mixed logit model to establish the role that toll products play in the context of offered times and costs of alternative routes, in choosing between alternative ways of paying for the use of tolled routes.

Weekly rhythms in task and time allocation of households

Analysis of household activity scheduling has to date been limited to one-day periods. This paper extends the study of household task allocation to a one-week period. Using a one-week time use survey held under couples in The Netherlands in 2003, the paper proposes indicators for measuring task allocation on a daily and weekly scale and investigates to what extent role expectations, work status and indicators of time pressure influence task allocation patterns. The outcomes suggest that egalitarian role expectations and higher female work status lead to a more balanced allocation of work and households tasks between spouses. More traditional role views and increased time pressure lead to more specialisation and inequality between spouses. Interestingly, households under time pressure apply day-to-day specialisation to arrive at balanced weekly allocation totals.

Railway reforms: do they influence operating efficiency?

This paper considers railway operations in 23 European countries during 1995–2001, where a series of reform initiatives were launched by the European Commission, and analyses whether these reform initiatives improved the efficiency of the railway systems. Efficiency is measured using Multi-directional Efficiency Analysis, which enables investigation of how railway reforms affect the inefficiencies of specific cost drivers. The main findings are that the reform initiatives generally improve technical efficiency but potentially differently for different cost drivers. Specifically, the paper provides empirical evidence that accounting separation is important for improving the efficiency in the use of both material and staff costs, whereas other reforms only influenced one of these factors.

The use of a hazard-based duration model for imputation of missing personal income data

This paper suggests using a proportional hazard model to predict personal income, for the purpose of imputing missing income data in household travel surveys. The model has a hazard function that comprises two multiplicative components: (1) a non-parametric baseline hazard function that is dependent only on the income level and (2) a function that is dependent only on the other personal attributes of the survey respondents (excluding income). To estimate and validate the model, data is drawn from a travel characteristics survey conducted in Hong Kong in year 2001. The model is found to have a much higher accuracy when compared with a conventional ordered probit model based on the assumption that the logarithm of income is normally distributed.

The effect of financial constraints on the optimal design of public transport services

Recent experience with the design of bus services in Santiago, Chile, seems to confirm Jansson's (1980) assertion regarding observed planned bus frequency and size being too low and too large, respectively. We offer an explanation based upon the relation between cost coverage, pricing and optimal design variables. We recall that average social cost decreases with patronage, which generates an optimal monetary fare below the average operators' cost, inducing an optimal subsidy. Then we compare optimal frequency and bus size—those that minimize total social costs—with those that minimize operators' costs only. We show that an active constraint on operators' expenses is equivalent to diminish the value of users' time in the optimal design problem. Inserting this property back in the optimal pricing scheme, we conclude that a self-financial constraint, if active, always provokes an inferior solution, a smaller frequency and, under some circumstances, larger than optimal buses.

The British colonial ‘divide and rule’ concept: its influence to transport access in inner city of George Town,Penang

George Town, Penang, is the oldest British colonial city in South East Asia. The colonial settlement layout in the inner city area is still intact today. The establishment of George Town as a trading centre had attracted immigrants from all over the world, especially from Asia (Chinese, Indians and Arabs). Recently, George Town has been enlisted under the UNESCO World Heritage Lists as an outstanding example of traditional multi-cultural settlement. The uniqueness of this inner city is that the formation of its urban pattern is the result of ‘divide and rule’ concept adopted by the British authority. Under the ‘divide and rule’ concept, these immigrants were located to settlement areas based on their ethnic background under one leader known as ‘kapitan’ (captain). The study finds that transport access in this inner city was influenced by the ‘divide and rule’ concept. Unlike formation of well-planned gridiron pattern in other British colonial cities such as in North America, Canada and Australia, the formation of the urban pattern in George Town has an irregular gridiron pattern. This type of urban pattern is typical under ‘divide and rule’ concept and this had indirectly influenced the setting and planning of the present street access and transport networks.

Disentangling the influence of neighborhood type and self-selection on driving behavior: an application of sample selection model

The causality issue has become one of the key questions in the debate over the relationships between the built environment and travel behavior. Although previous studies have tested statistical and/or practical significance of the built environment on travel behavior, few have quantified the relative roles of the built environment and residential self-selection in influencing travel behavior. Using 1,479 residents living in four traditional and four suburban neighborhoods in Northern California, this study explores the causal effect of neighborhood type on driving behavior and its relative contribution to the total influence of neighborhood type. Specifically, this study applied Heckman’s sample selection model to separate the effect of the built environment itself and the effect of self-selection. The results showed that, on average, the effect of neighborhood type itself on driving distance was 25.8 miles per week, which accounted for more than three quarters of the total influence of neighborhood type and 16% of individuals’ overall vehicle miles driven. These results suggest that the effect of the built environment on driving behavior outweighs that of self-selection. This paper also discussed the advantages and weaknesses of applying the Heckman’s model to address the self-selection issue.

A traffic analysis zone definition: a new methodology and algorithm

This paper develops a comprehensive approach to the definition of transportation analysis zones (TAZ), and therein, presents a new methodology and algorithm for the definition of TAZ embedded in geographic information systems software, improves the base algorithm with several local algorithms, and comprehensively analyses the obtained results. The results obtained are then compared to these presently used in the transportation analysis process of the Lisbon Metropolitan Area. The proposed algorithm presents a new methodology for TAZ design based on a smoothed density surface of geocoded travel demand data. The algorithm aims to minimise the loss of information when moving from a continuous representation of the origin and destination of each trip to their discrete representations through zones, and focuses on the trade-off between the statistical precision, geographical error, and the percentage of intra-zonal trips of the resulting OD matrix. The results for the Lisbon Metropolitan Area case study suggest a significant improvement in OD matrix estimates compared to current transportation analysis practises based on administrative units.

Communicating something confidential while travelling by train: the use of a telephone conversation versus silent modes

Wireless ICTs are often used in public transport. Using survey data collected amongst 98 train travellers this article aims to gain insight into important factors that affect train travellers’ intentions to communicate with distant others while travelling. More specifically, the focus is on the decision-making process that leads to the intention to choose for a confidential conversation either via ‘audible’ mobile phone or via ‘silent’ SMS/e-mail. An approach that is related to the Extended Model of Goal-directed Behaviour (EMGB) is applied. Structural equation modelling results indicate that in particular past SMS behaviour, the desire to communicate (goal desire), the perceived efficacy and controllability influence the intention to conduct a confidential phone conversation in the train. The influence of the social environment (e.g. eavesdropping) seems to be less important. Several EMGB constructs are strongly influenced by age. It seems that older respondents have more negative attitudes towards telephoning while travelling by train, and find it more difficult to call other people in such a situation. Finally, they have a lower intention than younger respondents to conduct a confidential conversation over the phone while travelling.

Financing public transport systems in Kuala Lumpur,Malaysia: challenges and prospects

Most major cities across the world today are facing an intractable challenge of financing public transport. In Kuala Lumpur for example, public transport services are somewhat poor in part because of the failure of major operators to secure ample funding. Previous funding programs implemented in the city have failed to produce a replicable model for financing public transport. Due to numerous financial problems and the dismal performance of privately owned transport firms, the State has in the recent past emerged as a key source of funding for the public transport sector in Kuala Lumpur. This article argues that, despite the insuperable challenges, prospects for the future funding of public transport in Kuala Lumpur appears to be good. The article also draws lessons from both Tokyo and Hong Kong. In order to address the funding deficit facing the public transport industry in the city it is crucial that more viable strategies and policies such as value capture and public–private sector partnerships are adopted by the urban authorities.

A copula-based joint multinomial discrete–continuous model of vehicle type choice and miles of travel

In this paper, a joint model of vehicle type choice and utilization is formulated and estimated on a data set of vehicles drawn from the 2000 San Francisco Bay Area Travel Survey. The joint discrete–continuous model system formulated in this study explicitly accounts for common unobserved factors that may affect the choice and utilization of a certain vehicle type (i.e., self-selection effects). A new copula-based methodology is adopted to facilitate model estimation without imposing restrictive distribution assumptions on the dependency structures between the errors in the discrete and continuous choice components. The copula-based methodology is found to provide statistically superior goodness-of-fit when compared with previous estimation approaches for joint discrete–continuous model systems. The model system, when applied to simulate the impacts of a doubling in fuel price, shows that individuals are more likely to shift vehicle type choices than vehicle usage patterns.

Transport models, philosophy and language

The aim of this paper is to encourage debate about the nature of transport modelling. It does so firstly by considering the underlying philosophies of science (apparently) adopted by transport modellers, over a period of more than 50 years, from the 1950s until the present day. The conclusion is that a new philosophy of science needs to be developed, which is more in tune with how transport modelling is actually carried out (as opposed to how early transport modellers thought it ought to be carried out). It is recommended that such a new philosophy perceives transport modelling as a linguistic activity within the overall context of transport planning, which is in turn considered as a communication process. The paper outlines three main approaches that could be taken in this respect, analysing transport models from metaphorical, narrative and aesthetic perspectives. Conclusions are drawn upon the possible future research directions that might follow from the analysis provided in the paper, emphasising the importance of bringing formal philosophical thinking into transport modelling research and practice.

Grouping travelers on the basis of their different car and transit levels of use

Market segmentation studies in travel behavior research are ordinarily based on socioeconomic characteristics and personality traits. This study explores the usefulness of a different approach, where the actual overall mobility levels across different ground transportation modes, along with desired changes in the use of cars and transit, are used as clustering variables. Using a given mode can in fact influence the personal representation of that mode, which in turn has been proven to be a key element in transport behaviours. We form such multimodality-based clusters from two field studies, one involving employees of the French transportation research institute INRETS and the other a representative sample of residents of the US San Francisco Bay Area. We find that strong users of a given mode would like to bring more balance to their “modal consumptions” by decreasing the use of this mode more than the average, and increasing the use of the alternative mode. However, concerning ground transport travel budgets, the desire to travel more (or less) overall seems less strongly related to the composition of the modal balance. The US dataset shows also a greater latent demand for travel than the French one. Socioeconomic characteristics of the clusters could not explain the patterns that were found, confirming the importance of taking into account multimodality issues in travel behavior research. Some policy implications from these findings are finally reported.

A hybrid model of fuzzy and AHP for handling public assessments on transportation projects

Having an effective public participation in transportation planning and project development processes has been a major concern for developed countries. In the United States, for instance, all state Departments of Transportation are subject to the Transportation Equity Act (TEA-21) that formally requires public involvement in transportation planning. Since transportation planning involves public resources and values, judgments by the public should play a key role in determining final decisions. Therefore, all these agencies are required not only to disseminate information to the public, but also to solicit and consider public opinion in forming transportation policy. This work presents a decision support model, with public involvement and public oversight, to help policy makers select appropriate transportation projects for implementation. Since focus groups will face multiple objectives and inexact information in the process, a hybrid model of fuzzy logic and analytical hierarchy process (AHP) is proposed. A set of ‘if–then’ rules based on Weber’s psycho-physical law of 1834 is presented to reason from fuzzy numbers to capture essential subjective preferences, pairwise, among the alternatives. The AHP is then incorporated to estimate preference allotments among alternatives. An example application of the suggested method is provided seeking public approval of an appropriate public bus transportation system choosing between one run by municipal authorities and one run by private agencies to show how this procedure works.

Traveled distance,stock and fuel efficiency of private vehicles in Canada: price elasticities and rebound effect

This paper presents estimates of the rebound effect and other elasticities for the Canadian light-duty vehicle fleet using panel data at the provincial level from 1990 to 2004. We estimate a simultaneous three-equation model of aggregate demand for vehicle kilometers traveled, vehicle stock and fuel efficiency. Price and income elasticities obtained are broadly consistent with those reported in the literature. Among other results, an increase in the fuel price of 10% would reduce driving by ~2% in the long term and by 1% the average fuel consumption rate. Estimates of the short- and long-term rebound effects are ~8 and 20%, respectively. We also find that an increase in the gross domestic product per capita of 10% would cause an increase in driving distance of 2–3% and an increase of up to 4% in vehicle stock per adult. In terms of policy implications, our results suggest that: (1) the effectiveness of new fuel efficiency standards will be somewhat mitigated by the rebound effect and (2) fuel price increases have limited impacts on gasoline demand.

Variation of households<Emphasis Type="Bold">’</Emphasis> car ownership across time: application of a panel data model

For economic and environmental policy formulation and with the effort of creating less car dependent societies, it is important to study the changing characteristics of car ownership in a household through time as well as factors responsible of these variations. There is a vast body of literature on empirical studies of car ownership and use. These studies have investigated the socio-economic background of the decision maker, the built environment and the perception associated with owning a car as determinant factors of car ownership and use. In most cases, these analyses have been carried out using cross-sectional data sets. However, the analysis of factors determining changes in travel behavior of an individual or household requires information on their behavior over time (longitudinal data set). In this study, the German Mobility Panel (1996–2006) is used to examine variation of car ownership through time and across households. The panel data modeling results showed that there are variations of car ownership between households whereas changes in car ownership of a given household over time (within household variations) are insignificant. The influence of other factors such as the households’ socio-economic background, the availability of public transportation and shopping/leisure facilities, perception on parking difficulties and satisfaction with existing public transportation services on the car owning characteristics of households is also presented and discussed in this paper.

Studying travel-related individual assessments and desires by combining hierarchically structured ordinal variables

Ordinal measures are frequently encountered in travel behavior research. This paper presents a new method for combining them when a hierarchical structure of the data can be presumed. This method is applied to study the subjective assessment of the amount of travel by different transportation modes among a group of French clerical workers, along with the desire to increase or decrease the use of such modes. Some advantages of this approach over traditional data reduction technique such as factor analysis when applied to ordinal data are then illustrated. In this study, combining evidence from several variables sheds light on the observed moderately negative relationship between the personal assessment of the amount of travel and the desire to increase or decrease it, thus integrating previous partial (univariate) results. We find a latent demand for travel, thus contributing to clarify the behavioral mechanisms behind the induced traffic phenomenon. Categorizing the above relationship by transportation mode shows a desire for a less environmental-friendly mix of modes (i.e., a greater desire to use heavy motorized modes and a lower desire to use two-wheeled modes), whenever the respondents do not feel to travel extensively. This result, combined with previous theoretical investigations concerning the determinants of the desire to alter trips consumption levels, shows the importance of making people aware of how much they travel.