Appraising large-scale investments in a metropolitan transportation system

A package of large-scale investments in the transportation infrastructure in the Stockholm metropolitan region is currently being proposed. It contains new investments in the railway and subway systems as well as new links in the road system. This paper deals with the issue of appraising this kind of investment program. One major problem is the lack of a unique standard method, and it is argued that several tools should be used in a practical evaluation of large-scale investments in the transportation system.Four different approaches are presented and related to each other. First, one study uses a network-based mode-split/assignment model with a fixed trip matrix. The second study is complementary, as its aim is to also trace the impacts on the spatial distribution of population and jobs by applying an integrated transportation and land use model. Third, the long-run effects of the investments on regional economic growth are discussed within the framework of regional production functions. Fourth, an alternative approach is used, in which benefits from the investments are assessed through their estimated influence on aggregate land values.Abbreviations RA Reference Alternative - IP Investment Proposal - IMREL Integrated Model of Residential and Employment Location - RPFM Regional Production Function Model An earlier version of this paper was presented at the 31th European Congress of the Regional Science Association, Lisbon, August 1991.     

Policy innovations of the US intermodal surface transportation efficiency act and clean air act amendments

In combination, the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and the Clean Air Act Amendments of 1990 (CAAA) are innovative and aggressive efforts to move US cities toward integrated transportation and air quality planning. Under these complementary laws, air quality has become a major national transportation goal. In areas with serious air pollution, air quality will be a major consideration in determining the future shape of urban transportation.This paper considers how the CAAA and ISTEA combine to provide an innovative national policy approach of interest to countries seeking to encourage sustainable development in urban centers. The CAAA mandates measurable and enforceable air quality targets. Nation-wide standards are set for acceptable levels of carbon monoxide, ground level ozone, and small particulates. ISTEA includes directions for transportation planners and decision-makers to follow to reach air quality and other goals — transportation planning must emphasize system efficiency, and for cities with severe air pollution, transportation projects are expected to contribute to cleaner air. Each urban area has flexibility in how it applies this framework to reflect its priorities and solve its problems. Strict federal sanctions provide incentives for compliance with both laws.Enactment of these laws has produced a period of transition and uncertainty as well as of challenge and opportunity for planners and elected officials. The next several years, the US will provide one national laboratory and over 100 different urban laboratories for innovative approaches to integrate transportation and environmental policies to resolve major urban problems.Abbreviations CAAA Clean Air Act Amendments of 1990 - CO Carbon monoxide - ECO Employee Commute Option - EPA US Environmental Protection Agency - HC Transportation hydrocarbons - I/M Inspections and maintenance program - ISTEA Intermodal Surface Transportation Efficiency Act of 1991 - MPO Metropolitan planning organizations - NO_x Nitrogen oxides - PPM Parts per million - PM₁₀ Small particulate matter - SIP State Implementation Plan - TIP Transportation Improvement Program - TCM Transportation control measures - VMT Vehicle miles traveled     

Exploring active transportation investments and associated benefits for municipal budgets: a scoping review

Municipalities play an important role in the planning and development of communities that support active transportation (AT), which refers to human-powered modes of travel, such as walking and cycling. Municipal-level stakeholders involved in land-use and transportation infrastructure planning consider multiple social, environmental and economic considerations to inform decision-making and investments in AT. Evidence around the fiscal benefits of AT investment for local governments has not been systematically identified. This scoping review sought to explore the existing evidence regarding investments in AT and opportunities for savings on municipal expenditures and revenue generation. In total, 7060 records were located and screened; of which 162 full-text articles were reviewed. Ultimately, 23 articles met our inclusion criteria and were included in this review. The available evidence focuses on potential economic benefits of AT in the areas of tax revenues, property values, consumer spending and employment, all of which are relevant sources of revenue generation in municipal operating budgets. An evidence gap was identified regarding AT infrastructure investments and benefits corresponding to municipal expenditures (e.g. maintenance cost savings). Notably, a large portion of literature was published after 2009, suggesting that municipal-level evidence on the fiscal benefits of AT investments may just be emerging.     

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.     

Emergence of resilience as a framework for state Departments of Transportation (DOTs) in the United States

State Departments of Transportation (DOTs) in the United States are responsible for a large portfolio of transportation modes and services, including passenger and freight systems. These responsibilities include operations under routine conditions and during incidents and events that result from various natural and human-caused hazards. During unexpected events, disruptions and reductions in service result in requiring the reallocation and reassignment of personnel, modal, and economic resources. To better prevent and respond to the effects of service disruptions, the concept of resilience has emerged as an important framework, within which, DOTs across the United States are using to plan for the occurrence of threats. In this paper, the key findings of recent reviews of literature and practice related to resilience among state DOTs in the United States are summarized. The review effort focused on a range of risks faced by transportation agencies including climate change, terrorism, cyber-attacks, and aging infrastructure and the ways in which DOTs are confronting them in practice. The topics of this paper range from the fundamental, including definitions of transportation resilience; to the more complex such as examinations of risk, vulnerability and threats; to the most sophisticated topics including administrative-level efforts to conceptualize evolving transportation planning and policies within a resilience framework.     

Timing rules for major transportation investments

The timing decision for major transportation investments – when to build – typically is made without an objective approach for considering the economic value of implementation at different times. This paper uses a model of benefit-cost analysis and derives rules for timing major transportation investments. Three sets of conditions are considered, depending on whether annual benefits of an investment are uncertain and whether the objective is to maximize net present value or simply to achieve positive net present value. The timing rules under each set of conditions are stated in three forms: benefit-cost ratio, annual benefits, and implementation time. The paper compares these timing rules analytically, discusses potential applications, and illustrates them with a numerical example. Consequences of incorrectly using the timing rules are also examined with the example. This revised version was published online in June 2006 with corrections to the Cover Date.     

The salience of megaregional geographies for inter-metropolitan transportation planning and policy making

Researchers have argued that megaregions are a crucial spatial scale to address infrastructure modernization, growth management, economic development and environmental impacts because processes affecting these domains are highly concentrated within megaregional spaces. This paper evaluates the conceptual issues and policy salience of megaregional planning in the U.S. by analyzing the results of a 2018 survey of 382 designated MPOs. Drawing upon the survey results, we find support for the notion that MPO partnerships operating at the megaregional scale are somewhat widespread and involve MPOs along with other partners, like state DOTs and councils of governments. A subset of common concerns—especially multi-modal freight, major transportation corridors, economic development, intercity rail service, and air quality—appear to motivate megaregional partnerships. MPOs were most likely to engage in megaregion-scale collaborations requiring relatively low levels organizational time and resources versus more substantive collaborative efforts to develop joint plans or coordinated project investments. At the same time, few MPO respondents viewed megaregional scale planning collaborations as a high priority or as highly effective. For the majority of MPOs, it appears likely that the costs of such collaborations currently outweigh prospective benefits. Survey respondents identified increasing staff funding, requiring state DOTs’ statewide plans to address megaregional issues, and facilitating and enabling inter-local agreements for megaregional planning as actions that would enhance the salience and effectiveness of megaregional planning. These actions will likely occur only if planning at this scale is embraced as an important priority by federal and state policy makers.     

Book Review

This paper examines the relationship between investment in transportation infrastructure capital and the debt-to-gross domestic product (GDP) ratio. We analyse the effect of bringing forward investment originally planned for future years to be executed during times of economic crisis and also consider the possible advantages of carrying out such investments with private sector financing. This paper presents a model which shows how policy aimed to encourage investment in transportation infrastructure projects through private sector participation may help raise long-term GDP and thus lead to a lower debt-to-GDP ratio. The theoretical model is then applied to current empirical data from Israel.     

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.     

Optimization of Fare Structure and Service Frequency for Maximum Profitability of Transit Systems

Abstract

Providing efficient public transportation has been recognized as a potential way of alleviating congestion, improving mobility, mitigating air pollution, and reducing energy consumption. Many people use public transportation systems for their daily commute, while others use different transportation modes (e.g. cars, taxis, carpools, etc.). Inexpensive fares with good transit service encourages ridership, and the resulting revenue may be used to provide better service. Optimization of transit service frequency and its associated fare structure is desirable in order to increase revenue at reasonable transit operating expenditure. The objective of the study reported here is to maximize profit subject to service capacity constraint, while elastic demand is considered. The solution methodology is developed and applied to solve the profit maximization problem in a case study based on Newark, NJ, USA. Numerical results, including optimal solutions and sensitivity analyses, are presented. It is found that an optimal temporal headway and differential fare structure that maximizes total profit for the studied subway system can be efficiently solved.     

Highway finance and the private sector: Issues and alternatives

Private participation in all aspects of transportation has been prevalent throughout the history of the United States. The U.S. approach to transportation finance evolved from European influence. Particularly, the English economist Adam Smith described the role of public works in facilitating national commerce. The notion of user charges or tolls as opposed to general revenue as the source of financial support was offered as a means for constructing and maintaining roads. Highway and transportation development has undergone significant changes in the last few decades. The 1970s ushered in an era of escalating costs of highway development and maintenance. Dependency on imports of foreign oil, global economics, and related events affecting the supply and demand of motor vehicle fuel have had dramatic effects on contemporary means of funding highway programs in the U.S. In responses to this funding dilemma states highway officials began exploring various alternatives for funding transportation improvements. The role of transportation agencies has changed in emphasis since the 1950s. A variety of financial, legal, and logistical issues have forced governments to closely evaluate options for transportation development and finance. State responses to these issues vary. However, there remain a variety of funding alternatives including financing districts, impact fees, tax increment financing, toll financing, and private sector funding.     

Campus parking supply impacts on transportation mode choice

Parking demand is a significant land-use problem in campus planning. The parking policies of universities and large corporations with facilities located in small urban areas shape the character of their campuses. These facilities will benefit from a simplified methodology to study the effects of parking availability on transportation mode mix and impacts on recruitment and staffing policies. This paper, based on a case study of North Dakota State University in the United States, introduces an analytical framework to provide planners with insights about how parking supply and demand affects campus transportation mode choice. The methodology relies only on aggregate mode choice data for the special generator zone and the average aggregate volume/capacity ratio projections for all external routes that access the zone. This reduced data requirement significantly lowers analysis cost and obviates the need for specialized modelling software and spatial network analysis tools. Results illustrate that the framework is effective for analysing mode choice changes under different scenarios of parking supply and population growth.     

Incorporating uncertainty and risk in transportation investment decision-making

This paper presents a framework for addressing uncertainty and risk for large-scale transportation investments involving public–private participation. Demand, fare/toll and demand responsive costs are considered in the uncertainty analysis. Uncertainty analysis provides information on economic feasibility of the project. A set of relaxation policies is proposed to form various Ownership, Tenure and Governance (OTG) strategies reflecting the nature and level of participation by the public and private entity. A Monte Carlo Simulation-based Value at Risk is used to quantify risk. Finally, a methodology is proposed to integrate uncertainty and risk. The framework is tested on the proposed multibillion dollar Detroit River International Crossing connecting the cities of Detroit in the USA with Windsor in Canada. The analysis provides insights to probable outcomes for this transportation infrastructure investment under different OTG scenarios.     

A comparison of the sustainability of public and private transportation systems: Study of the Greater Toronto Area

A macroscopic assessment of the impacts of private and public transportation systems on the sustainability of the Greater Toronto Area (GTA) is undertaken from economic, environmental and social perspectives. The methodology draws upon the urban metabolism and sustainability indicators approaches to assessing urban sustainability, but compares modes in terms of passenger-kms. In assessing the economic sustainability of a city, transportation should be recognized as a product, a driver and a cost. In 1993, the traded costs of automobile use in the GTA were approximately balanced by the value of the automobile parts and assembly industry. But local transit costs 1/3 to 1/6 of the auto costs per person-km, in traded dollars, mainly because local labour is the primary cost.Public transportation is more sustainable from an environmental perspective. Automobile emissions are a major contributor to air pollution, which is a serious contemporary environmental health problem in Toronto. Public transportation modes are less energy intensive (including indirect energy consumption) and produce CO₂ at an order of magnitude lower, although these benefits are partially undermined by under-utilization of transit capacity and the source of electricity generation.The social benefits of automobile use are likely more significant than costs in determining GTA residents' preferential mode choice. The speed and access of auto use provide important economic benefits, e.g. relating to employment and product choice. Nevertheless, offsetting the service attributes of private transportation are large social costs in terms of accidents. The costs of automobile insurance provide one tangible measure of such negative impacts.In order to improve the sustainability of the GTA, innovative approaches are required for improving the performance level of public transportation or substantially reducing the need for the service level provided by automobiles. Efforts such as greater integration of bicycles with public transit, or construction of light-rail systems in wide roadways, might be considered. But to be sustainable overall, a transportation system has to be flexible and adaptable and so must combine a mixture of modes.     

A decomposition approach to determining fleet size and structure with network flow effects and demand uncertainty

This paper presents a new methodology to determine fleet size and structure for those airlines operating on hub‐and‐spoke networks. The methodology highlights the impact of stochastic traffic network flow effects on fleet planning process and is employed to construct an enhanced revenue model by incorporating the expected revenue optimization model into fleet planning process. The objective of the model is to find a feasible allocation of aircraft fleet types to route legs using minimum fleet purchasing cost, thus ensuring that the expected fleet profit is maximized subject to several critical resource constraints. By using a linear approximation to the total network revenue function, the fleet planning model with enhanced revenue modeling is decomposed into the nonlinear aspects of expected revenue optimization and the linear aspects of determining fleet size and structure by optimal allocation of aircraft fleet types to route legs. To illustrate this methodology and its economic benefits, an example consisting of 6 chosen aircraft fleet types, 12 route legs, and 57 path‐specific origin‐destination markets is presented and compared with the results found using revenue prorated fleet planning formulation. The results show that the fleet size and structure of the methodology proposed in this paper gain 211.4% improvement in fleet profit over the use of the revenue prorated fleet planning approach. In addition, comparison with the deterministic model reveals that the fleet size and structure of this proposed methodology are more adaptable to the fluctuations of passenger demands. Copyright © 2016 John Wiley & Sons, Ltd.     

An optimization model of energy and transportation systems: Assessing the high-speed rail impacts in the United States

This paper presents a long-term investment planning model that co-optimizes infrastructure investments and operations across transportation and electric infrastructure systems for meeting the energy and transportation needs in the United States. The developed passenger transportation model is integrated within the modeling framework of a National Long-term Energy and Transportation Planning (NETPLAN) software, and the model is applied to investigate the impact of high-speed rail (HSR) investments on interstate passenger transportation portfolio, fuel and electricity consumption, and 40-year cost and carbon dioxide (CO₂) emissions. The results show that there are feasible scenarios under which significant HSR penetration can be achieved, leading to reasonable decrease in national long-term CO₂ emissions and costs. At higher HSR penetration of approximately 30% relative to no HSR in the portfolio promises a 40-year cost savings of up to $0.63 T, gasoline and jet fuel consumption reduction of up to 34% for interstate passenger trips, CO₂ emissions reduction by about 0.8 billion short tons, and increased resilience against petroleum price shocks. Additionally, sensitivity studies with respect to light-duty vehicle mode share reveal that in order to realize such long-term cost and emission benefits, a change in the passenger mode choice is essential to ensure higher ridership for HSR.     

Remuneration models and revenue risk mitigation in road public–private partnership projects – a case study from Serbia

As a consequence of renewed interest in attracting private financing for infrastructure investments, public–private partnership (PPP) arrangements are mostly seen as a suitable mechanism for ensuring sound and quicker delivery of transport infrastructure projects. However, a general concern is that expectations of mobilizing private-sector funds have been overestimated in a number of cases. The purpose of this paper is to contribute to the risk analysis of transport PPP projects with substantial exogenous demand risk which could serve as a rationale for choosing the appropriate PPP model. The objective of this paper is to construct an analytical cash flow-based project model to facilitate the choice of the remuneration mechanism suitable for both private investors and public sector. The model provides an indication whether the project should be implemented as a ‘users pay’, a hybrid or an ‘annuity’ PPP model. The proposed methodology is illustrated using a case study from Serbia.     

Optimization Of Headway,Vehicle Size and Route Choice for Minimum Cost Feeder Service

ABSTRACT

Many people use public transportation systems to reach their destination, while others use personal vehicles. Poor transportation systems do not attract ridership. Therefore, the usage of passenger cars increases, and traffic and environmental conditions deteriorate. Efficient public transportation has been recognized as one of the potential ways of mitigating air pollution, reducing energy consumption, improving mobility and alleviating traffic congestion. The objective of this study is to optimize a bus feeder service that provides the shuttle service between a recreation center (e.g. Sandy Hook, NJ) and a major public transportation facility, subject to site-specific constraints such as vehicle schedules, bus availability, service capacity and budget. The decision variables include bus headway, vehicle size and route choice. The solution methodology integrating both analytical and numerical techniques is developed, which optimizes the decision variables. Finally, the proposed solution methodology is applied to a case study. Numerical results, including optimal solutions and sensitivity analyses, are presented while the level of coordination between the feeder service and a major transportation service is discussed.     

CO2 emissions and expansion of railway,road, airline and in-land waterway networks over the 1985–2013 period in China: A time series analysis

China, the world’s largest CO₂ emitter, is continuing its long-term strategy to use transportation investments as a tool for development. With the expectation that transportation will contribute 30–40% of the total CO₂ emissions in China in the near future, there is an imminent need to identify how the development of different transportation modes may have different long-term effects on CO₂ emissions. Using time series data over the period of 1985–2013, this paper applies the combined autoregressive distributed lag (ARDL) and vector error correction model (VECM) approach to identify short- and long-run causal relationships between CO₂ emissions and mode-specific transportation development, including railway, road, airline, and inland waterway. We find that China’s domestic expansions of road, airline, and waterway infrastructure lead to long-run increases in CO₂ emissions. Among them, waterway has the strongest positive impact on CO₂ emissions, followed by road. Despite a short-run, positive impact on CO₂ emissions, railway expansion leads to long-run decreases in CO₂ emissions. The results are especially encouraging for the central government of China given its long-standing and on-going efforts to expand railway infrastructure at the national level. Looking forward, it is recommended that China continues its national investments in railway infrastructure to achieve both environment and economy goals.