Behavioural responses to vehicle emissions charging

Road pricing as an economic construct is not a new phenomenon in transportation research. Whilst fuel taxation and tolling of roads are common ways of raising revenue in many countries, these initiatives are primarily aimed at road infrastructure financing. Worldwide there has been growing interest in pricing structures designed to also manage the growing levels of traffic congestion and, in recent times, an increasing focus on generating reductions in carbon emissions from vehicle ownership and use. This paper presents a stated choice experiment undertaken in response to the increasing interest in the environmental externalities of travel behaviour. The aim of this choice experiment is to identify the potential to switch to more fuel efficient cars that emit lower emissions, under differing pricing and technology scenarios. Results indicate that annual and variable emissions surcharges targeted very specifically to vehicle emission rates have a noticeable role in modifying vehicle purchasing decisions.     

A dynamic cordon pricing scheme combining the Macroscopic Fundamental Diagram and an agent-based traffic model

Pricing is considered an effective management policy to reduce traffic congestion in transportation networks. In this paper we combine a macroscopic model of traffic congestion in urban networks with an agent-based simulator to study congestion pricing schemes. The macroscopic model, which has been tested with real data in previous studies, represents an accurate and robust approach to model the dynamics of congestion. The agent-based simulator can reproduce the complexity of travel behavior in terms of travelers’ choices and heterogeneity. This integrated approach is superior to traditional pricing schemes. On one hand, traffic simulators (including car-following, lane-changing and route choice models) consider travel behavior, i.e. departure time choice, inelastic to the level of congestion. On the other hand, most congestion pricing models utilize supply models insensitive to demand fluctuations and non-stationary conditions. This is not consistent with the physics of traffic and the dynamics of congestion. Furthermore, works that integrate the above features in pricing models are assuming deterministic and homogeneous population characteristics. In this paper, we first demonstrate by case studies in Zurich urban road network, that the output of a agent-based simulator is consistent with the physics of traffic flow dynamics, as defined by a Macroscopic Fundamental Diagram (MFD). We then develop and apply a dynamic cordon-based congestion pricing scheme, in which tolls are controlled by an MFD. And we investigate the effectiveness of the proposed pricing scheme. Results show that by applying such a congestion pricing, (i) the savings of travel time at both aggregated and disaggregated level outweigh the costs of tolling, (ii) the congestion inside the cordon area is eased while no extra congestion is generated in the neighbor area outside the cordon, (iii) tolling has stronger impact on leisure-related activities than on work-related activities, as fewer agents who perform work-related activities changed their time plans. Future work can apply the same methodology to other network-based pricing schemes, such as area-based or distance-traveled-based pricing. Equity issues can be investigated more carefully, if provided with data such as income of agents. Value-of-time-dependent pricing schemes then can also be determined.     

Introducing congestion pricing on a new toll road

This paper proposes a demonstration project to test the effectiveness of congestion pricing in an urban area. It reviews the general theoretical case for such pricing and summarizes recent international interest in congestion pricing. Next, it sets forth the reasons why demonstration projects are needed, both to add to our knowledge about how effective congestion pricing may prove to be, and to address political and other public-acceptance barriers to implementation of the concept. The paper then defines a specific proposed test site for congestion pricing: a new toll road being planned for Orange County, California. It is proposed that instead of charging flat-rate tolls, the transportation agency could charge peak and off-peak tolls, increasing the level of the peak charge each year over a period of up to 10 years unless or until toll revenues decline below the levels forecast under the flat-rate toll alternative. Measurements of traffic flow and ride-sharing behavior would be made, as well as calculations of emission-reduction effects. The paper concludes with a brief discussion of marketing and political considerations involved in conducting such a demonstration.Abbreviations ARB Air Resources Board - AVI Automatic Vehicle Identification - CDMG Corridor Design Management Group - HOV High-occupancy vehicle - SJHTC San Joaquin Hills Transportation Corridor - TCA Transportation Corridor Agency - VMT Vehicle miles traveled     

Achieving political acceptability for new transport infrastructure in congested urban regions

This paper analyzes the efficiency and political acceptability of road pricing and infrastructure policies targeted at relieving urban congestion. It combines a stylized transport model of an urban road network with a model of the political process that incorporates interactions between voters, citizen interest groups and politicians to explore the possibilities to reach political acceptability for efficient transport policies. In a numerical illustration, the paper compares a set of pricing and investment policies in terms of efficiency and acceptability. The illustration shows how conflicting interests can lead to non-efficient policies being chosen.     

Evaluating the benefits of a combined route guidance and road pricing system in a traffic network with recurrent congestion

When drivers do not have complete information on road travel time and thus choose their routes in a stochastic manner or based on their previous experience, separate implementations of either route guidance or road pricing cannot drive a stochastic network flow pattern towards a system optimum in a Wardropian sense. It is thus of interest to consider a combined route guidance and road pricing system. A road guidance system could reduce drivers' uncertainty of travel time through provision of traffic information. A driver who is equipped with a guidance system could be assumed to receive complete information, and hence be able to find the minimum travel time routes in a user-optimal manner, while marginal-cost road pricing could drive a user-optimal flow pattern toward a system optimum. Therefore, a joint implementation of route guidance and road pricing in a network with recurrent congestion could drive a stochastic network flow pattern towards a system optimum, and thus achieve a higher reduction in system travel time. In this paper the interaction between route guidance and road pricing is modeled and the potential benefit of their joint implementation is evaluated based on a mixed equilibrium traffic assignment model. The private and system benefits under marginal-cost pricing and varied levels of market penetration of the information systems are investigated with a small and a large example. It is concluded that the two technologies complement each other and that their joint implementation can reduce travel time more efficiently in a network with recurrent congestion.     

Optimal cordon pricing in a non-monocentric city

This paper examines the effect of cordon pricing based on an urban spatial model of a non-monocentric city where trips may occur between any pair of locations in the city. The model describes the spatial distribution of trip demand and traffic congestion under alternative pricing schemes. We evaluate the efficiency of resource allocation by comparing three schemes: no-toll equilibrium, first-best optimum, and optimal cordon pricing. Optimal cordon pricing is defined as a combination of cordon location and toll level that maximizes the social surplus in a city. Simulations show that cordon pricing is not always effective for congestion management: cordon pricing tends to be effective as the urban structure is more monocentric.     

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.     

A framework for evaluating the dynamic impacts of a congestion pricing policy for a transportation socioeconomic system

This paper provides a modeling framework based on the system dynamics approach by which policy makers can understand the dynamic and complex nature of traffic congestion within a transportation socioeconomic system representation of a metropolitan area. This framework offers policy makers an assessment platform that focuses on the short- and long-term system behaviors arising from an area-wide congestion pricing policy along with other congestion mitigation policies. Since only a few cities in the world have implemented congestion pricing and several are about to do so, a framework that helps policy makers to understand the impacts of congestion pricing is currently quite relevant. Within this framework, improved bus and metro capacities contribute to the supply dynamics which in turn affect the travel demand of individuals and their choice of different transportation modes. Work travel and social networking activities are assumed to generate additional travel demand dynamics that are affected by travelers’ perception of the level of service of the different transportation modes, their perception of the congestion level, and the associated traveling costs. It is assumed that the, population, tourism and employment growth are exogenous factors that affect demand. Furthermore, this paper builds on a previously formulated approach where fuzzy logic concepts are used to represent linguistic variables assumed to describe consumer perceptions about transportation conditions.     

Capturing value of reliability through road pricing in congested traffic under uncertainty

Empirical studies showed that travel time reliability, usually measured by travel time variance, is strongly correlated with travel time itself. Travel time is highly volatile when the demand approaches or exceeds the capacity. Travel time variability is associated with the level of congestion, and could represent additional costs for travelers who prefer punctual arrivals. Although many studies propose to use road pricing as a tool to capture the value of travel time (VOT) savings and to induce better road usage patterns, the role of the value of reliability (VOR) in designing road pricing schemes has rarely been studied. By using road pricing as a tool to spread out the peak demand, traffic management agencies could improve the utility of travelers who prefer punctual arrivals under traffic congestion and stochastic network conditions. Therefore, we could capture the value of travel time reliability using road pricing, which is rarely discussed in the literature. To quantify the value of travel time reliability (or reliability improvement), we need to integrate trip scheduling, endogenous traffic congestion, travel time uncertainty, and pricing strategies in one modeling framework. This paper developed such a model to capture the impact of pricing on various costs components that affect travel choices, and the role of travel time reliability in shaping departure patterns, queuing process, and the choice of optimal pricing. The model also shows the benefits of improving travel time reliability in various ways. Findings from this paper could help to expand the scope of road pricing, and to develop more comprehensive travel demand management schemes.     

Incident characteristics,frequency, and duration on a high volume urban freeway

Rapidly deteriorating travel conditions in U.S. metropolitan areas have led to renewed interest in more effectively managing nonrecurrent congestion. Effective incident management requires an understanding of incident patterns, frequency, and duration. However, such information is limited. This paper presents an analysis of incidents using data from a major Los Angeles, California freeway. Incident patterns are described, and duration is analyzed as a function of incident characteristics. Results indicate that accidents make up a very small proportion of all incidents, but account for a relatively greater share of all incident duration. Major explanatory factors of incident duration include incident type, time of day, truck involvement, and lane closures. The paper concludes with a discussion of alternative approaches to reducing the congestion impacts of incidents.     

Optimal toll locations and toll levels in congestion pricing schemes: a case study of Stockholm

As congestion pricing has moved from theoretical ideas in the literature to real-world implementation, the need for decision support when designing pricing schemes has become evident. This paper deals with the problem of finding optimal toll levels and locations in a road traffic network and presents a case study of Stockholm. The optimisation problem of finding optimal toll levels, given a predetermined cordon, and the problem of finding both optimal toll locations and levels are presented, and previously developed heuristics are used for solving these problems. For the Stockholm case study, the possible welfare gains of optimising toll levels in the current cordon and optimising both toll locations and their corresponding toll levels are evaluated. It is shown that by tuning the toll levels in the current congestion pricing cordon used in Stockholm, the welfare gain can be increased significantly, and furthermore improved by allowing a toll on a major bypass highway. It is also shown that, by optimising both toll locations and levels, a congestion pricing scheme with welfare gain close to what can be achieved by marginal social cost pricing can be designed with tolls being located on only a quarter of the tollable links.     

A Pareto‐improving hybrid policy for transportation networks

This paper investigates an innovative Pareto‐improving hybrid policy that combines two policy instruments, that is, congestion pricing and road space rationing, and takes advantage of the synergistic effects between these instruments. Mathematical formulations for developing Pareto‐improving pure road space rationing schemes and hybrid policies are presented. Numerical examples demonstrate that the proposed hybrid policy offers greater flexibility and is more prominent in leading to Pareto improvement than both pure congestion pricing and road space rationing schemes. Copyright © 2013 John Wiley & Sons, Ltd.     

Air pollution dynamics and the need for temporally differentiated road pricing

In this paper we investigate the effects of the temporal variation of pollution dispersion, traffic flows and vehicular emissions on pollution concentration and illustrate the need for temporally differentiated road pricing through an application to the case of the congestion charge in Stockholm, Sweden. By accounting explicitly for the role of pollution dispersion on optimal road pricing, we allow for a more comprehensive view of the economy–ecology interactions at stake, showing that price differentiation is an optimal response to the physical environment. Most congestion charges in place incorporate price bands to mitigate congestion. Our analysis indicates that, to ensure compliance with air quality standards, such price variations should also be a response to limited pollution dispersion.     

Implementation of cordon pricing on urban network with practical approach

The road pricing is regarded as a transport policy to realize the efficient use of urban network. The network analysis with variable demand has been often applied to describe the network level of congestion pricing on the urban network. In the study, the cordon pricing system is analyzed to implement in the urban area with practical approach. It is assumed that the congestion tolls are collected in crossing the cordon lines on the network. Therefore, the scale of cordon zones and the values of congestion tolls would be determined simultaneously to produce the maximum social net benefit. The combinatorial optimization with unit price is formulated. The genetic algorithm (GA) is applied as a practical method to provide the solutions for the combinatorial optimization problem. As the pattern of cordon pricing is determined, the performance of system is estimated to confirm the applicability. It is concluded that the cordon pricing can be applied with the practical approach.     

Road pricing modeling for hyper-congestion

Recently there has been a resurgence in the interest of road pricing. Most studies adopt the static modeling paradigm, typically using either separable monotone or backward-bending link travel time functions for the analysis. In this study, through the shockwave analysis, we show that separable backward-bending functions are not appropriate for modeling hyper-congestion and hence road pricing. In the absence of queue spillback, link travel time is a monotone increasing function of inflow. However, in the presence of queue spillback, we show that the static paradigm even with a monotone travel time function cannot adequately portray the congestion phenomenon. In some cases, the tolls determined by the static paradigm can be even detrimental, worsening rather than alleviating the congestion problem. In the end, to model congested networks properly, perhaps one has no other choices but to adopt a modeling paradigm that faithfully captures both the temporal as well as the spatial dimensions of traffic queuing.     

Road pricing for congestion control with unknown demand and cost functions

It is widely recognized that precise estimation of road tolls for various pricing schemes requires a few pieces of information such as origin–destination demand functions, link travel time functions and users’ valuations of travel time savings, which are, however, not all readily available in practice. To circumvent this difficulty, we develop a convergent trial-and-error implementation method for a particular pricing scheme for effective congestion control when both the link travel time functions and demand functions are unknown. The congestion control problem of interest is also known as the traffic restraint and road pricing problem, which aims at finding a set of effective link toll patterns to reduce link flows to below a desirable target level. For the generalized traffic equilibrium problem formulated as variational inequalities, we propose an iterative two-stage approach with a self-adaptive step size to update the link toll pattern based on the observed link flows and given flow restraint levels. Link travel time and demand functions and users’ value of time are not needed. The convergence of the iterative toll adjustment algorithm is established theoretically and demonstrated on a set of numerical examples.     

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.     

Complementing distance based charges with discounted registration fees in the reform of road user charges: the impact for motorists and government revenue

The call for a congestion charge is getting louder and more frequent in many countries as major metropolitan areas experience increasing levels of road congestion. This is often accompanied by a recognition that governments need to find new sources of revenue to maintain existing road networks and to invest in new transport infrastructure. Although reform of road pricing is almost certain to occur at some time in the future in a number of countries, a key challenge is in selling the idea to the community of road users as well as a whole raft of interest groups that influence the views of society and politicians. Simply announcing a need for a congestion charge (often misleadingly called a tax) does little to progress the reform agenda. What is required is a carefully structured demonstration of what might be done to progressively introduce adjustments in road user charges that are seen as reducing the costs to motorists while ensuring no loss of revenue to government. In this paper we show, in the context of Sydney (Australia), that this can be achieved by the reform of registration fees in the presence of a distance-based charging regime that can deliver financial gains to motorists, with prospects of revenue growth to the State Treasury.     

Credible commitment and congestion pricing

Transportation analysts frequently assert that congestion pricing’s political obstacles can be overcome through astute use of the toll revenue pricing generates. Such “revenue recycling,” however, implies that the collectors of the toll revenue will not be its final recipients, meaning that any revenue recipient must believe that the revenue collector will honor promises to deliver the money. This raises the potential for credible commitment problems. Promises to spend revenue can solve one political problem, because revenue is an easy benefit to understand, but create another one, because revenue is easy to divert. Revenue recycling may therefore not be a promising way to build political support for congestion pricing. We highlight the role commitment problems have played efforts to implement congestion pricing, using examples from around the world and then focusing on California. Because congestion reduction is a more certain benefit than any particular use of the toll revenue, demonstration projects, rather than revenue promises, will be key to pricing’s political success.     

Robust optimization of distance-based tolls in a network considering stochastic day to day dynamics

This paper investigates the nonlinear distance-based congestion pricing in a network considering stochastic day-to-day dynamics. After an implementation/adjustment of a congestion pricing scheme, the network flows in a certain period of days are not on an equilibrium state, thus it is problematic to take the equilibrium-based indexes as the pricing objective. Therefore, the concept of robust optimization is taken for the congestion toll determination problem, which takes into account the network performance of each day. First, a minimax model which minimizes the maximum regret on each day is proposed. Taking as a constraint of the minimax model, a path-based day to day dynamics model under stochastic user equilibrium (SUE) constraints is discussed in this paper. It is difficult to solve this minimax model by exact algorithms because of the implicity of the flow map function. Hence, a two-phase artificial bee colony algorithm is developed to solve the proposed minimax regret model, of which the first phase solves the minimal expected total travel cost for each day and the second phase handles the minimax robust optimization problem. Finally, a numerical example is conducted to validate the proposed models and methods.