Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain

Tolls have increasingly become a common mechanism to fund road projects in recent decades. Therefore, improving knowledge of demand behavior constitutes a key aspect for stakeholders dealing with the management of toll roads. However, the literature concerning demand elasticity estimates for interurban toll roads is still limited due to their relatively scarce number in the international context. Furthermore, existing research has left some aspects to be investigated, among others, the choice of GDP as the most common socioeconomic variable to explain traffic growth over time. This paper intends to determine the variables that better explain the evolution of light vehicle demand in toll roads throughout the years. To that end, we establish a dynamic panel data methodology aimed at identifying the key socioeconomic variables explaining changes in light vehicle demand over time. The results show that, despite some usefulness, GDP does not constitute the most appropriate explanatory variable, while other parameters such as employment or GDP per capita lead to more stable and consistent results. The methodology is applied to Spanish toll roads for the 1990–2011 period, which constitutes a very interesting case on variations in toll road use, as road demand has experienced a significant decrease since the beginning of the economic crisis in 2008.     

Bayesian network-based formulation and analysis for toll road utilization supported by traffic information provision

Congestion pricing has been proposed and investigated as an effective means of optimizing traffic assignment, alleviating congestion, and enhancing traffic operation efficiencies. Meanwhile, advanced traffic information dissemination systems, such as Advanced Traveler Information System (ATIS), have been developed and deployed to provide real-time, accurate, and complete network-wide traffic information to facilitate travelers’ trip plans and routing selections. Recent advances in ATIS technologies, especially telecommunication technology, allow dynamic, personalized, and multimodal traffic information to be disseminated and impact travelers’ choices of departure times, alternative routes, and travel modes in the context of congestion pricing. However, few studies were conducted to determine the impact of traffic information dissemination on toll road utilizations. In this study, the effects of the provisions of traffic information on toll road usage are investigated and analyzed based on a stated preference survey conducted in Texas. A Bayesian Network (BN)-based approach is developed to discover travelers’ opinions and preferences for toll road utilization supported by network-wide traffic information provisions. The probabilistic interdependencies among various attributes, including routing choice, departure time, traffic information dissemination mode, content, coverage, commuter demographic information, and travel patterns, are identified and their impacts on toll road usage are quantified. The results indicate that the BN model performs reasonably well in travelers’ preference classifications for toll road utilization and knowledge extraction. The BN Most Probable Explanation (MPE) measurement, probability inference and variable influence analysis results illustrate travelers using highway advisory radio and internet as their primary mode of receiving traffic information are more likely to comply with routing recommendations and use toll roads. Traffic information regarding congested roads, road hazard warnings, and accident locations is of great interest to travelers, who tend to acquire such information and use toll roads more frequently. Travel time formation for home-based trips can considerably enhance travelers’ preferences for toll road usage. Female travelers tend to seek traffic information and utilize toll roads more frequently. As expected, the information provided at both pre-trip and en-route stages can positively influence travelers’ preferences for toll road usage. The proposed methodology and research findings advance our previous study and provide insight into travelers’ behavioral tendencies concerning toll road utilization in support of traffic information dissemination.     

Logistical restructuring and road freight traffic growth

The forecasting of road freight traffic has relied heavily on the close correlation between GDP and road tonne-kilometers. It has not been rooted in an understanding of the causes of freight traffic growth. The research reported in this paper has investigated this process of traffic growth in two ways: first, by analysing official data on the production, consumption and movement of food and drink products, and second, by conducting a survey of the changing freight transport requirements of 88 large British-based manufacturers.The analysis of secondary data shows how, in the food and drink sector, the relationship between the real value of output and road vehicle-kms hinges on four key parameters: value density, handling factor, average length of haul and consignment size. An attempt is made to explain variations in these parameters.The survey of manufacturers suggests that the growth of lorry traffic is the net result of a complex interaction between factors operating at four levels of logistical management: strategic planning of logistical systems, choice of suppliers and distributors, scheduling of product flow and the management of transport resources. Changes in the frequency and scheduling of freight deliveries in response to tightening customer service requirements and just-in-time management appear to have become a more prevalent cause of freight traffic growth than the physical restructuring of logistical systems. Manufacturers anticipate that their road freight demand will broadly increase in line with sales and be largely unaffected by road transport cost increases at the levels currently proposed. The paper concludes by examining their likely reactions to a much sharper increase in the cost of road freight movement.     

A multivariate cointegrating vector auto regressive model of freight transport demand: evidence from Indian railways

In this paper long run structural relationship for freight transport demand is derived for railways in India using annual time series data for 1960–1995. Some of the recent developments in multivariate dynamic econometric time series modelling have been employed such as estimation of long-run structural cointegrating relationship, short-run dynamics and measurement of the effects of shocks and their persistence during the evolution of dynamic freight transport demand system. The models are estimated using a cointegrating vector autoregressive (VAR) modelling framework, which allows for endogeneity of regressors. Results indicate high GDP elasticity and low price elasticity, with real freight rate, i.e. the price variable behaving exogenously with respect to the system. Any disequilibrium in the short-run is likely to be corrected in the long run via adjustments in freight transport demand and GDP. Further, the demand system seems to be stable in the long run and converges to equilibrium in a period of around 3 years after a typical system-wide shock.     

Comparison of road freight transport trends in Europe. Coupling and decoupling factors from an Input–Output structural decomposition analysis

Decoupling road freight transport from economic growth has been acknowledged by the European Union as a key means to improving sustainability. It is therefore important to identify both the coupling and decoupling drivers of road freight transport demand in order to determine possible factors that may contribute to reduce road transport in the future without curbing economic development. This research proposes an Input–Output (IO) structural decomposition analysis (SDA) to explain road freight transport in terms of a set of key factors that have strongly influenced road freight demand in recent decades in European countries—such as economic growth, economic structure and the evolution of road transport intensity (including improvements in both supply and transport systems). This methodological approach allows us to quantify and compare their contribution in different European countries to either increase or decrease road freight transport demand. The empirical basis for this analysis is a dataset of nine European countries which have IO tables and road transport data available from 2000 to 2007, comprising data on domestic production, imports and exports as well as tonne-kms for 11 types of commodity classes. The results show that, as a whole, aggregate road transport demand has grown—driven mainly by economic activity—but this growth has been strongly curbed in some countries by changes in road freight transport intensity and moderately by the dematerialization of the economy. International transport has been also proven to be a key factor driving road freight transport volumes. Moreover, the increased penetration of foreign operators in national haulage markets appears to have reinforced the final decoupling levels observed in some cases.     

Users’ perceptions and willingness to pay in interurban toll roads: identifying differences across regions from a nationwide survey in Spain

Users’ acceptability is considered one of the key drivers for the successful implementation of transport policy measures. This is especially crucial in the case of toll roads since they are financed through drivers’ contributions. Previous literature in this field has mainly focused on measuring users’ attitudes towards urban congestion pricing strategies. However limited research has been developed concerning interurban toll roads. Previous research shows that socioeconomic variables are not conclusive to explain users’ perceptions towards tolls. By contrast, other drivers such as regional differences seem to play a more important role, especially when charging conditions within the same nation greatly vary across regions. This paper analyzes regional differences in users’ attitudes within an asymmetrical distribution of the toll road network across regions. Based on a nationwide survey conducted to road users in interurban toll roads in Spain, we develop both a binomial logit and a censored regression (tobit) model to explore drivers’ perceptions and willingness to pay. The research concludes that users from regions with a more extensive tolled network generally show a more negative attitude towards charges, but not necessarily a lower willingness to pay. The paper also points out that an asymmetrical distribution of toll roads across regions may result in negative perceptions among those users perceiving to be unfairly treated when compared to citizens in other regions.     

Enhanced traffic information dissemination to facilitate toll road utilization: a nested logit model of a stated preference survey in Texas

This paper investigates the effects of the provision of traffic information on toll road usage based on a stated preference survey conducted in central Texas. Although many researchers have studied congestion pricing and traffic information dissemination extensively, most of them focused on the effects that these instruments individually produce on transportation system performance. Few studies have been conducted to elaborate on the impacts of traffic information dissemination on toll road utilization. In this study, 716 individuals completed a survey to measure representative public opinions and preferences for toll road usage in support of various traffic information dissemination classified by different modes, contents, and timeliness categories. A nested logit model was developed and estimated to identify the significant attributes of traffic information dissemination, traveler commuting patterns, routing behavior, and demographic characteristics, and analyze their impacts on toll road utilization. The results revealed that the travelers using dynamic message sign systems as their primary mode of receiving traffic information are more likely to choose toll roads. The potential toll road users also indicated their desire to obtain traffic information via internet. Information regarding accident locations, road hazard warnings, and congested roads is frequently sought by travelers. Furthermore, high-quality congested road information dissemination can significantly enhance travelers’ preferences of toll road usage. Specifically the study found that travelers anticipated an average travel time saving of about 11.3 min from better information; this is about 30 % of travelers’ average one-way commuting time. The mean value of the time savings was found to be about $11.82 per hour, close to ½ of the average Austin wage rate. The model specifications and result analyses provide in-depth insights in interpreting travelers’ behavioral tendencies of toll road utilization in support of traffic information. The results are also helpful to shape and develop future transportation toll system and transportation policy.     

Institutional structure of New Zealand licensed road freight carriers

Road freight transport in New Zealand has operated under government regulations since 1936, primarily to protect the freight revenue of the New Zealand Railways. In 1983 an Act was passed to deregulate the freight transport industry and to switch over to a qualitative licensing system. This is expected to have some impact on competition within the road freight industry as well as between road and rail. This paper analyses the institutional structure of the road freight industry at the pre‐deregulation phase. The trend over the last few years, shows that the number of single vehicle owners (mostly owner‐drivers) and their share in the industry is growing at a faster rate than others. The vehicle authority distribution varies widely from one region to another in the country. Economic factors like employment, population, urbanization etc. could not explain this variation. The segregation of demand by existing government regulations appears to be the main reason for such diversity in vehicle authority distribution. Apparently there is no monopoly trend in the aggregate nor in the regional distribution. However, many owner drivers work closely with large firms, which may change the concentration observed in the distribution of vehicle authorities.

Productivity is relatively high for one person operations, i.e., mainly owner drivers. It then goes down and then rises to a certain limit. This gives an indication of the possibility of economies of scale, the single vehicle firms being an exception.     

The effect of the competition between cars and trucks on the evolution of the motorway transport system

Motorways, which were devised at the beginning of their history as dedicated roads intended to be traveled by cars only, are at present also traveled by considerable flows of trucks. This fact has deeply changed the motorway transport system with respect to its original conception, owing to the interactions between two categories of vehicles whose characteristics are very different. These interactions greatly increase the transport cost perceived by car drivers with respect to truck drivers. This paper studies the consequences of this cost asymmetry on the evolution of the transport system when the geometric characteristics of a motorway remain unchanged in time, while transport demand increases. By using a theoretical model of competition between cars and trucks, it is shown that, if both the geometric characteristics of a motorway and the increase rate of the activities that feed the transport demand remain unchanged over time, the competition between cars and trucks, as well as the fact that in general passengers have better transport alternatives than freight, make the increase rate of truck traffic greater than that of cars, causing a progressive increase in the proportion of trucks in the time periods in which a motorway is traveled by both the vehicle categories. Since truck traffic on motorways, at least in Europe, is very scarce on weekends and in holiday periods, in which motorways are traveled almost only by cars, these results seem to indicate a tendency to the specialization of motorways, which are likely to be used in the future mostly by only one category of vehicles in different periods of time.     

Private road competition and equilibrium with traffic equilibrium constraints

Toll road competition is one of the important issues under a build-operate-transfer (BOT) scheme, which is being encountered nowadays in many cities. When there are two or more competing firms and each firm operates a competitive toll road, their profits are interrelated due to the competitors' choices and demand inter-dependence in the network. In this paper we develop game-theoretic approaches to the study of the road network, on which multiple toll roads are operated by competitive private firms. The strategic interactions and market equilibria among the private firms are analyzed both in determining their supply (road capacity) and price (toll level) over the network. The toll road competition problems in general traffic equilibrium networks are formulated as an equilibrium program with equilibrium constraints or bi-level variational inequalities. Heuristic solution methods are proposed and their convergences are demonstrated with simple network examples. It is shown that private pricing and competition can be both profitable and welfare-improving.     

Toll Roads in Australia: An Overview of Characteristics and Accuracy of Demand Forecasts

Abstract

A primary motivation of this paper is to draw together, in one source, information on the nature, extent and performance of Australia's evolving toll road network which is currently spread across many disparate published and unpublished sources. This paper provides key information (e.g. length, toll rates, year opened, operator(s) and payment alternatives) on all of the fully interoperable toll roads in Australia that are present in Sydney (e.g. the M2, M4, M5, etc.), Melbourne (CityLink and EastLink) and Brisbane (the Gateway Bridge, the Logan Motorway and the Gateway Extension). Where available, we compare and discuss actual traffic levels and forecasts, revealing the sizeable gap or ‘error’ in forecasts, especially during the first year of operation. Ordinary least squares regression and panel random effects regression models are developed to identify potential sources of explanation of differences in error forecasts between the Australian toll roads at various points post the opening date. A separate analysis of a sample of toll roads in the USA was also undertaken that supports the main findings from the Australian toll road network. Key influences on errors in forecasts are the capacity of a toll road, the elapsed time that the toll road has been in place, the specific period of time in which a tolled road is introduced into the network (which influences the complexity of route options including multiple tolled routes and hence toll saturation), the length of the tolled route, the presence of cash payment and the charging regime (i.e. fixed vs. distance‐based or variable user tolls).     

Profit maximization by a private toll road with cars and trucks

This paper examines the profit maximizing behavior of a private firm which operates a toll road competing against a free alternative in presence of cars and trucks. Trucks differ from cars in value of time (VOT), congestion externality, pavement damage, and link travel time function. We find that the firm takes either a car-strategy or a truck-strategy for profit maximization. For a traffic mix with relatively large car volume and small truck volume, the car-strategy results in no trucks using the toll road, while the truck-strategy results in all trucks using the toll road. We derive the equilibrium flow pattern under any combination of car-toll and truck-toll, based on which we identify a profit-maximizing frontier and a strategy-switching frontier in the car-toll and truck-toll two-dimensional space. By geometrically comparing the two frontiers, we establish general conditions under which each strategy will be taken, which suggest that the truck-to-car VOT ratio, the total traffic demand, and the difference in travel distance between the two roads are critical in shaping the firm's strategy.     

Traffic congestion pricing methodologies and technologies

This paper reviews the methods and technologies for congestion pricing of roads. Congestion tolls can be implemented at scales ranging from individual lanes on single links to national road networks. Tolls can be differentiated by time of day, road type and vehicle characteristics, and even set in real time according to current traffic conditions. Conventional toll booths have largely given way to electronic toll collection technologies. The main technology categories are roadside-only systems employing digital photography, tag & beacon systems that use short-range microwave technology, and in-vehicle-only systems based on either satellite or cellular network communications. The best technology choice depends on the application. The rate at which congestion pricing is implemented, and its ultimate scope, will depend on what technology is used and on what other functions and services it can perform.     

Impacts of combining partial and general equilibrium modelling in freight transport analyses – a forest sector case study from Norway

Abstract

The forest sector in Norway is very transport intensive, accounting for approximately 14% of total domestic freight transport traffic on Norwegian roads. This paper presents an analysis linking a general equilibrium freight transport modelling tool with a partial equilibrium model of the forest sector. The freight transport model predicts transport costs, modal split and transport patterns, and the results are treated as inputs to the forest sector model. The objective of the paper is to analyse the modelling effect of taking forest sector model effects back into the freight transport model and treated as new demand. Compared to a base scenario for the year 2020, we compare analyses with and without this new demand from the forest sector model back into the freight transport modelling tool.     

A dynamic approach to road freight flows modeling in Spain

This paper presents an innovative approach to analyzing road vehicle freight traffic that uses a dynamic panel data specification derived from a gravity model. This dynamic approach, which has recently been employed in international goods trade models in lieu of the traditional static specification, is applied to the case of Spain using data for the countrys 15 NUTS-3 regions between 1999 and 2009. Using the system general method of moments approach, we obtained significant evidence that the flow of vehicles carrying commodities by road has a strong persistence effect when controlling for unobserved heterogeneity. We also found that the quality of road transport infrastructure has a significant impact on vehicle trips. According to our findings, we suggest that this type of specification be employed in distribution models in which fixed effects and lags of the dependent variable are included to account for unobserved heterogeneity and persistence effects, respectively.     

Emission rates of intermodal rail/road and road-only transportation in Europe: A comprehensive simulation study

Intermodal rail/road transportation combines advantages of both modes of transport and is often seen as an effective approach for reducing the environmental impact of freight transportation. This is because it is often expected that rail transportation emits less greenhouse gases than road transportation. However, the actual emissions of both modes of transport depend on various factors like vehicle type, traction type, fuel emission factors, payload utilization, slope profile or traffic conditions. Still, comprehensive experimental results for estimating emission rates from heavy and voluminous goods in large-scale transportation systems are hardly available so far. This study describes an intermodal rail/road network model that covers the majority of European countries. Using this network model, we estimate emission rates with a mesoscopic model within and between the considered countries by conducting a large-scale simulation of road-only transports and intermodal transports. We show that there are high variations of emission rates for both road-only transportation and intermodal rail/road transportation over the different transport relations in Europe. We found that intermodal routing is more eco-friendly than road-only routing for more than 90% of the simulated shipments. Again, this value varies strongly among country pairs.     

Route choice preferences: insights from Portuguese freight forwarders and truck drivers

ABSTRACT

Exploring route choice in the context of tolled alternatives can support road operators to achieve better utilization of the infrastructure, as well as maximizing revenue collection. The research presented in this paper is conducted in the context of OPTIMUM, a European Union-funded project. The research objectives include a two-component system of models that proactively calculates commercial vehicles’ toll prices. The component presented in this paper rests on the development of a route choice model that estimates the probabilities of using two alternative routes (toll road vs. national road), based on route attributes and user characteristics. To explore the usefulness of the proposed methodology a case study involving 50 truck drivers and 25 freight operators was conducted in Portugal between January 2016 and November 2017. Results from the route choice model reveal interesting insights about the role of incentives in the choice of toll roads, the perspectives of the different decision-makers and produce Values of Time for the study area.     

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.     

Electronic toll collection

Electronic toll collection (ETC) offers the opportunity for toll facility operators to supply a substantially greater amount of traffic capacity than any other currently available form of toll collection. The current interest in ETC derives from the proposals in a number of countries to introduce urban tollways, using the net toll receipts to recover the cost of the capital investment plus an acceptable profit margin for those taking the financial risk. This paper outlines the main economic, technical, and administrative features of ETC in the context of toll charges that are determined by the rules of capital cost recovery. Electronic road pricing (ERP) as a mechanism for implementing full road user charging (in line with economic principles of efficient use of road space) is not the topic of this paper, given the predominantly financial basis of setting tolls for private roads. The underlying rationale for toolroads in the political climate of most nations is not suggestive of any plan to revise the pricing regime in line with ERP upon reversion of the infrastructure to the public sector when the capital costs are repaid. It is assumed that the tollroads will revert to free roads in line with the existing road system, and that road users will continue to contribute towards the costs of maintaining the road system by the traditional pricing mechanisms (i.e. fuel taxes, vehicle registration, fees, etc.).     

Estimating traffic demand risk – A multiscale analysis

This paper proposes a novel method for estimating the traffic demand risk associated with transportation. Using mathematical properties of wavelets, we develop a statistical measure of traffic demand sensitivity with respect to GDP. This measure can be adapted in a flexible way to capture risk levels relevant for different investment horizons. We demonstrate the timescale decomposition of risk with Swedish traffic demand data for 1950–2005. In general, rail transport shows a stronger co-movement with GDP than road transport. Moreover, we examine the volatility exhibited by traffic demand. Our findings suggest that rail investments are more risky than road investments. Since the findings can be used for optimal investment timing and for choice between public investment alternatives, they are deemed important for public policy in general.