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.

Assessment of large transport infrastructure projects: The CBA-DK model

This paper presents a newly developed decision support model to assess transport infrastructure projects: CBA-DK. The model combines use of conventional cost–benefit analysis to produce aggregated single point estimates, with quantitative risk analysis using Monte Carlo simulation to produce interval results. The embedded uncertainties within traditional CBA such as ex-ante based investment costs and travel time savings are of particular concern. The paper investigates these two impacts in terms of the Optimism Bias principle which is used to take account of the underestimation of construction costs and the overestimation of travel time savings. The CBA-DK methodological approach has been used to apply suitable probability distribution functions on the uncertain parameters, thus resulting in feasibility risk assessment moving from point to interval results. The proposed assessment model makes use of both deterministic and stochastic based information. Decision support as illustrated in this paper aims to provide assistance in the development and ultimately the choice of action, while accounting for the uncertainties surrounding transport appraisal schemes. The modelling framework is illustrated by the use of a case study appraising airport and runway alternatives in the capital of Greenland – Nuuk. The case study has been conducted in cooperation with the Home Rule Authorities of Greenland.     

On the use of mathematical programming in the evaluation of transport policies

This paper focuses on the evaluation processes by which decisions regarding transportation alternatives can be assisted. A multidimensional approach usually called multiple criteria decision making is required to represent the complexity of transportation policy and systems.

The multiple criteria decision making techniques can be divided into two groups. The first is based on a ranking scheme approach and the second on a mathematical programming approach.

A multiple objective mathematical programming procedure known as Goal Programming is presented. The authors examined the use of that procedure in real transportation problems.

The results suggest that multiple objective mathematical programming techniques in general do not appear to be appropriate in transportation policy analysis involving mutually exclusive alternatives. Their use can be limited to special cases in the private sector.     

The treatment of traffic in the Dutch environmental outlooks: the role of science in policy making and policy evaluation

The Dutch National Institute of Public Health and Environmental Protection publishes Environmental Outlooks in which 25‐year projections are made. These Outlooks quantifying the environmental problems, form the scientific basis for Dutch environmental policy. Traffic and transport is one of the main sectors causing environmental problems. The emissions and energy use of all relevant categories (road traffic, non‐road traffic) are based on model simulations with models. This paper describes the main models used.

If present policy is implemented only a minority of the environmental targets will be met.

If a sustainable transport system for the Netherlands means a large reducton in CO₂ emissions and energy use after 2010 a stronger emphasis on both technical and non‐technical measures (such as land‐use planning combined with public transport improvements) for the period until 2010 is needed than proposed in the Second Transport Structure Plan, unless a sustainable energy source becomes available.     

The role of subsidy policies in modernizing the structure of the bus transit industry

Full reliance on conventional forms of bus transit for peak hour needs reduces industry productivity and creates major new subsidy requirements. Restructuring of transit is needed to enable paratransit integration and other innovations than can improve efficiency. This paper discusses the industry's long-term neglect of efficiency and describes subsidy policies that would promote necessary changes.     

Understanding the impacts of mobile phone distraction on driving performance: A systematic review

The use of mobile phones while driving—one of the most common driver distractions—has been a significant research interest during the most recent decade. While there has been a considerable amount research and excellent reviews on how mobile phone distractions influence various aspects of driving performance, the mechanisms by which the interactions with mobile phone affect driver performance is relatively unexamined. As such, the aim of this study is to examine the mechanisms involved with mobile phone distractions such as conversing, texting, and reading and the driving task, and subsequent outcomes. A novel human-machine framework is proposed to isolate the components and various interactions associated with mobile phone distracted driving. The proposed framework specifies the impacts of mobile phone distraction as an inter-related system of outcomes such as speed selection, lane deviations and crashes; human-car controls such as steering control and brake pedal use and human-environment interactions such as visual scanning and navigation. Eleven literature-review/meta-analyses papers and 62 recent research articles from 2005 to 2015 are critically reviewed and synthesised following a systematic classification scheme derived from the human-machine system framework. The analysis shows that while many studies have attempted to measure system outcomes or driving performance, research on how drivers interactively manage in-vehicle secondary tasks and adapt their driving behaviour while distracted is scant. A systematic approach may bolster efforts to examine comprehensively the performance of distracted drivers and their impact over the transportation system by considering all system components and interactions of drivers with mobile phones and vehicles. The proposed human-machine framework not only contributes to the literature on mobile phone distraction and safety, but also assists in identifying the research needs and promising strategies for mitigating mobile phone-related safety issues. Technology based countermeasures that can provide real-time feedback or alerts to drivers based on eye/head movements in conjunction with vehicle dynamics should be an important research direction.     

Regulation of the informal transport sector in Rio de Janeiro,Brazil: welfare impacts and policy analysis

In Brazil, the explosion of informal transport activity during the past decade has had profound effects on formal public transport systems and is a source of great controversy in the urban transportation sector. A variety of policies have been proposed to manage the growth of the sector. This study seeks to understand how proposed policies will impact the users of these systems. A corridor in Rio de Janeiro with substantial informal activity was used as a case study. Measures of welfare changes in a discrete choice framework were used to estimate proposed policies’ impacts on users. Eleven candidate policies were evaluated, ranging from the eradication of the informal modes and investment in formal modes, to the legalization of the informal modes. Benefits were compared with costs and the distribution of benefits across income classes was explored. Net benefits from some policies were found to be substantial. Legalizing the informal sector was found to benefit users slightly but further investments in the sector are probably inefficient. Users benefited most from improvements in formal mass transit modes, at roughly 100–200 dollars per commuter per year. Finally, policies to foster a competitive environment for the delivery of both informal and formal services were shown to benefit users about 100 dollars per commuter per year. Together, the regulation of the informal sector and investments in the formal sector serve to reinforce the movement towards competitive concessions for services and help reduce the impacts of cartelization and costly in-road competition.

Optimization of transport investment and pricing policies: the role of transport pricing in network design

This paper investigates the role of transport pricing in network design and describes two facts about flow pattern in a transportation system. The first, illustrated by an example of Braess paradox, is that adding a new link to the network does not necessarily minimize the total travel time. The second is that introducing of appropriate toll pricing may reduce not only the total network time but also the travel time for each individual traveller. It follows with the investigations of different system objectives and different pricing policies (only toll pricing and distance‐based pricing are considered), and shows how they affect the system performance and flow pattern. Lastly, a systematic optimization process is proposed for integrated planning of transport network and pricing policies.     

Travel time reliability: a review of late time valuations,elasticities and demand impacts in the passenger rail market in Great Britain

This paper provides an extensive review and reconciliation of British and European evidence relating to the value of, and demand responses to, rail reliability. In particular, we compare the elasticities implied by stated preference valuations of late time with directly estimated lateness elasticities. We find that the implied lateness elasticities are substantially greater than those directly estimated. A possible explanation for this is that lateness has been over-valued, but more sobering explanations would be to suggest that, whilst rail travellers dislike unreliability, they may be unwilling or unable to reduce their rail travel in response to experiences of poor performance, or else conventional economic approaches to deducing elasticities are not appropriate. The findings have been used to update the recommendations of the UK rail industry’s Passenger Demand Forecasting Handbook.     

The effects of federal transit subsidy policy on investment decisions: The case of San Francisco's Geary Corridor

In the United States, federal funding for public transit often accounts for a large proportion of a local agency's budget, especially for capital investments. For this reason, local governments can be expected to plan a portfolio of projects that maximize federal contributions. This study examines the financial effects of federal transit subsidy policy on local transit investment decisions. Data from a System Planning Study for the Geary Corridor in San Francisco are used as an illustration. It is found that federal transit subsidy policy provides financial incentives for local decision-makers to select capital-intensive investment options that may not be efficient or effective. While federal financial incentives are not the only factor influencing local investment decisions, some reform of the current subsidy policy may be necessary to reduce the incentive for ineffective use of public resources.     

Travel patterns in Dutch metropolitan cities: The importance of external trips

Using a variety of data sources, decentralisation of population and employment in four Dutch urban areas (Amsterdam, Rotterdam, The Hague and Utrecht) over the last 20 years, is analysed. It is found that suburbanisation, plus an ever growing car share, has increased the number of external journeys related to the metropolitan cities enormously. With the use of the 1982 National Travel Survey, current travel patterns in and around the metropolitan cities are studied: the importance of external trips for urban transport planning shows clearly. They account for about half the number of city related car trips, and for nearly three quarters of the total vehicle kilometres of travel within the city.(requests for reprints)     

Evaluating impacts of coastal flooding on the transportation system using an activity-based travel demand model: a case study in Miami-Dade County,FL

Transportation - Recent climatic disasters have shown the vulnerability of transportation infrastructures against natural hazards. To understand the risk of coastal hazards on urban travel...     

The future tourism mobility of the world population: Emission growth versus climate policy

Much of global passenger transport is linked to tourism. The sector is therefore of interest in studying global mobility trends and transport-related emissions. In 2005, tourism was responsible for around 5% of all CO₂ emissions, of which 75% were caused by passenger transport. Given the rapid growth in tourism, with 1.6 billion international tourist arrivals predicted by 2020 (up from 903 million in 2007), it is clear that the sector will contribute to rapidly growing emission levels, and increasingly interfere with global climate policy. This is especially true under climate stabilisation and “avoiding dangerous climate change” objectives, implying global emission reductions in the order of −50% to −80% by 2050, compared to 2000. Based on three backcasting scenarios, and using techniques integrating quantitative and qualitative elements, this paper discusses the options for emission reductions in the tourism sector and the consequences of mitigation for global tourism-related mobility by 2050. It ends with a discussion of the policy implications of the results.     

The trade-off between trips and distance traveled in analyzing the emissions impacts of center-based telecommuting

Several travel indicators were compared between telecommuting (TC) days and non-telecommuting days for a sample of 72 center-based telecommuters in California. Distance traveled decreased significantly on TC days, with average reductions of 51 person-miles (58%) and 35 vehicle-miles (53%). When weighted by telecommuting frequency, average reductions of 11.9% in PMT and 11.5% in VMT were found over a five-day work week. Person-trips and vehicle-trips increased slightly (but not significantly) on TC days. This was due to statistically significant increases in commute trips by telecommuters (who more often went home for lunch on their TC days), partly counteracted by decreases in non-commute travel. The drive-alone mode share increased on TC days, both for all trips, and for commute trips in particular. Walking and biking shares also increased modestly on TC days, whereas shares of transit and ridesharing declined. Despite the increase in trip rates, TC-day reductions were found for all pollutants analyzed: 15% for total organic gas emissions, 21% for carbon monoxide, 35% for oxides of nitrogen, and 51% for particulate matter. The reduction in VMT more than compensated for the marginal increase in number of trips (and consequently, cold starts) on telecommuting days.     

The sharing economy and the job market: the case of ride-hailing drivers in Chile

Transportation - Ride-hailing (ridesourcing) companies such as Uber, Lyft, and Didi Chuxing have been a disruptive force in the urban mobility landscape around the world during the past decade. In...     

Evaluating the effects of green port policy: Case study of Kaohsiung harbor in Taiwan

The paper evaluates the effectiveness of strategies designed to reduce these pollutants in port areas, based on a newly developed assessment model to calculate emissions. The case study found that the strategy of reducing the ship’s speed to 12 knots is most effective in cutting fuel consumption and costs, as well as emissions. Adopting an onshore power supply system could reduce CO₂ emission by 57.16% and PM by 39.4%. By adopting the strategies of both reduced speed and cold ironing emissions control, a reduction in emissions of 71% to 91% can be achieved with a 20 nautical mile reduced speed zone. Therefore, the goals of reductions in emissions to improve port areas air quality could be achieved through adopting a green port policy in the future.     

Estimating the environmental costs of port related emissions: The case of Kaohsiung

This study estimates the emission costs of ships and trucks in the Port of Kaohsiung, Taiwan, focusing mainly on particular matter and volatile organic compounds. By calculating annual ship and truck emissions we find that the major contributors are tankers, container ships and bulk ships and trucks. Using a bottom-up methodology, the combined environmental costs of ships and trucks are estimated to be over $123 million per year.     

The role of residential self-selection in land use-travel research: a review of recent findings

ABSTRACT

Residential self-selection (RSS) is an important concern in the land use-travel research. Although many studies have addressed RSS during the past two decades, empirical results are inconsistent in terms of the existence, magnitude, and direction of self-selection bias. Moreover, recent studies substantiated other plausible associations within the theoretical framework of RSS, such as the endogeneity of travel attitudes. These further complicate the role of RSS in the land use-travel relationship. To improve understanding, this paper summarises recent progress in the RSS research, especially the studies published in the last decade. Specifically, we review three types of influences among the built environment, attitudes, and travel behaviour, and discuss unsolved problems within each type. We also discuss measurement issues of the built environment and attitudes in the RSS research. Because attitudes could be confounders, moderators, and mediators of the link between the built environment and travel behaviour, we recommend panel data with at least three waves of household travel surveys to address the complicated influences of attitudes. Future research needs to be more process-oriented to better understand the nature of RSS and its complex roles in the land use-travel research.