What type of road pricing scheme might appeal to politicians? Viewpoints on the challenge in gaining the citizen and public servant vote by staging reform

The greatest hurdle facing road pricing reform is political commitment. With rare exception, efforts to introduce significant reform in road pricing, aimed at raising sufficient revenue to ensure that road investment and ongoing maintenance is secured, without an additional impost to users above current outlays, while at the same time reducing traffic congestion, has fallen largely on politically non-supportive ears. The big challenge is to convince politicians (and their advisers) that it is possible to reform road pricing so that users are made better off (at least the great majority) in terms of time spent travelling and monies outlaid, and that government secures growing levels of revenue, but with at least some funds being used to improve public transport and the existing road network. This paper identifies the major issues that make much of the academic research into road pricing somewhat limited in terms of achieving real change. Staging reform is an appealing way forward, but ensuring the order and timing of events to secure progress is the big challenge. We offer some suggestions, including some ideas on new language designed to increase the level of buy in, and recognise that progress through action will require compromises in respect of an ‘ideal’ economically efficient pricing reform agenda.     

Quantifying the benefit of responsive pricing and travel information in the stochastic congestion pricing problem

This paper is concerned with roadway pricing amidst the uncertainty which characterizes long-term transportation planning. Uncertainty is considered both on the supply-side (e.g., the effect of incidents on habitual route choice behavior) and on the demand-side (e.g., due to prediction errors in demand forecasting). The framework developed in this paper also allows the benefits of real-time travel information to be compared directly against the benefits of responsive pricing, allowing planning agencies to identify the value of these policy options or contract terms in publicly-operated toll roads. Specifically, six scenarios reflect different combinations of policy options, and correspond to different solution methods for optimal tolls. Demonstrations are provided on both the Sioux falls and Anaheim networks. Results indicate that providing information to drivers implemented alongside responsive tolling may reduce expected total system travel time by over 9%, though more than 8% of the improvement is due to providing information, with the remaining 1% improvement gained from responsive tolling.     

Analyzing high speed rail passengers’ train choices based on new online booking data in China

This study explores two nonparametric machine learning methods, namely support vector regression (SVR) and artificial neural networks (ANN), for understanding and predicting high-speed rail (HSR) travelers’ choices of ticket purchase timings, train types, and travel classes, using ticket sales data. In the train choice literature, discrete choice analysis is the predominant approach and many variants of logit models have been developed. Alternatively, emerging travel choice studies adopt non-utility-based methods, especially nonparametric machine learning methods including SVR and ANN, because (1) those methods do not rely on assumptions on the relations between choices and explanatory variables or any prior knowledge of the underlying relations; (2) they have superb capabilities of iteratively identifying patterns and extracting rules from data. This paper thus contributes to the HSR train choice literature by applying and comparing SVR and ANN with a real-world case study of the Shanghai-Beijing HSR market in China. A new normalized metric capturing both the load factor and the booking lead time is proposed as the target variable and several train service attributes, such as day of week, departure time, travel time, fare, are identified as input variables. Computational results demonstrate that both SVR and ANN can predict the train choice behavior with high accuracy, outperforming the linear regression approach. Potential applications of this study, such as rail pricing reform, have also been identified.     

Urban delivery industry response to cordon pricing, time-distance pricing, and carrier-receiver policies in competitive markets

The paper develops a set of analytical formulations to study the behavior of the urban delivery industry in response to cordon time-of-day pricing, time-distance pricing, and comprehensive financial policies targeting carriers and receivers. This is accomplished by modeling the behavior of receivers in response to financial incentives, and the ensuing behavior of the carrier in response to both pricing and the receivers’ decisions concerning off-hour deliveries. The analytical formulations consider both the base case condition, and a mixed operation with both regular hour and off-hour deliveries; two pricing schemes: cordon time of day, and time-distance pricing; two types of operations: single-tour, and multi-tour carriers; and three different scenarios in terms of profitability of the carrier operation, which include an approximation to the best case, the expected value, and the worst case. The analyses, both theoretical and numerical, highlight the limitations of pricing-only approaches. In the case of cordon time of day pricing, the chief conclusion is that it is of limited use as a freight demand management tool because: (1) in a competitive market the cordon toll cannot be transferred to the receivers as it is a fixed cost and (2) the structure of the cost function, that only provides an incentive to the carrier to switch to the off-hours when all the receivers in the tour switch to the off-hours. The analyses of time-distance pricing clearly indicate that, though its tolls could be transferred to the receivers and provide an incentive for behavior change, the magnitude of the expected toll transfers under real life conditions are too small to have any meaningful impact on receivers choice of delivery times. In essence, the key policy implication is that in order to change the joint behavior of carrier and receivers, financial incentives—or programs that foster unassisted off-hour deliveries—should be made available to receivers in exchange for their commitment to do off-hour deliveries. As the paper proves, if a meaningful number of receivers switch to the off-hours, the carriers are likely to follow suit.     

Integrated operations planning and revenue management for rail freight transportation

In the rail industry, profit maximization relies heavily on the integration of logistics activities with an improved management of revenues. The operational policies chosen by the carrier have an important impact on the network yield and thus on global profitability. This paper bridges the gap between railroad operations planning and revenue management. We propose a new bilevel mathematical formulation which encompasses pricing decisions and network planning policies such as car blocking and routing as well as train make-up and scheduling. An exact solution approach based on a mixed integer formulation adapted to the problem structure is presented, and computational results are reported on randomly generated instances.     

Promoting Public Transport Using Marketing Techniques in Mobility Management and Verifying their Quantitative Effects

Mobility management (MM) is a transportation management policy that uses “soft” measures to attempt to reduce car use and promote sustainable transportation modes such as public transport, bicycles, and walking. Using communication and other means, MM induces voluntarily change towards more sustainable transportation modes. We implemented MM marketing to promote an experimental community bus service. This project had two components: a questionnaire conducted in the service area and a monthly newsletter. The questionnaire was more than a survey; it also communicated information about the bus and helped promote bus use. One month after the survey, we implemented a follow-up survey targeting the initial survey respondents. Results suggest that the MM program produced a general increase in bus use, as well as mouth-to-mouth advertising, that helped promote bus use.     

Peak period tolls: Precepts and prospects

This article presents the economic rationale for road pricing and provides some scale on the magnitude of peak period tolls that might be justified. It discusses the impacts of such tolls on congestion, air quality and economic development and suggests a long term strategy towards areawide implementation of peak period pricing. It discusses current trends which are increasing the likelihood for implementation of congestion pricing and toll roads in the future. In particular, it discusses some aspects of the 1991 Intermodal Surface Transportation Efficiency Act (ISTEA) which will eliminate some of the current restraints on congestion pricing and toll highways.Abbreviations ETC Electronic toll collection - FHWA Federal Highway Administration - HOV High occupancy vehicle - ISTEA Intermodal Surface Transportation Efficiency Act - LOS Level of service - TCM Transportation control measure - V/C Volume-to-capacity ratio - VMT Vehicle mile(s) of travel - vphpl Vehicles per hour per lane     

Is the curb 80% full or 20% empty? Assessing the impacts of San Francisco’s parking pricing experiment

The city of San Francisco is undertaking a large-scale controlled parking pricing experiment. San Francisco has adopted a performance goal of 60–80% occupancy for its metered parking. The goal represents an heuristic performance measure intended to reduce double parking and cruising for parking, and improve the driver experience; it follows a wave of academic and policy literature that calls for adjusting on-street parking prices to achieve similar occupancy targets. In this paper, we evaluate the relationship between occupancy rules and metrics of direct policy interest, such as the probability of finding a parking space and the amount of cruising. We show how cruising and arrival rates can be simulated or estimated from hourly occupancy data. Further, we evaluate the impacts of the first two years of the San Francisco program, and conclude that rate changes have helped achieve the City’s occupancy goal and reduced cruising by 50%.