Road pricing with complications

The rationale for congestion charges is that by internalising the marginal external congestion cost, they restore efficiency in the transport market. In the canonical model underlying this view, congestion is a static phenomenon, users are taken to be homogenous, there is no travel time risk, and a highly stylised model of congestion is used. The simple analysis also ignores that real pricing schemes are only rough approximations to ideal systems and that inefficiencies in related markets potentially affect the case for congestion charges. The canonical model tends to understate the marginal external congestion cost because it ignores user heterogeneity and trip timing inefficiencies. With respect to the relevance of interactions between congestion and congestion charges and tax distortions and distributional concerns, recent insights point out that there is no general case for modifying charges for such interactions. Therefore the simple Pigouvian rule remains a good first approximation for the design of road charging systems.     

Revisiting the relationship between traffic congestion and the economy: a longitudinal examination of U.S. metropolitan areas

Conventional transportation practices typically focus on alleviating traffic congestion affecting motorists during peak travel periods. One of the underlying assumptions is that traffic congestion, particularly during these peak periods, is harmful to a region’s economy. This paper seeks to answer a seemingly straightforward question: is the fear of the negative economic effects of traffic congestion justified, or is congestion merely a nuisance with little economic impact? This research analyzed 30 years of data for 89 US metropolitan statistical areas (MSAs) to evaluate the economic impacts of traffic congestion at the regional level. Employing a two-stage, least squares panel regression model, we controlled for endogeneity using instrumental variables and assessed the association between traffic congestion and per capita gross domestic product (GDP) as well as between traffic congestion and job growth for an 11-year time period. We then investigated the relationship between traffic congestion and per capita income for those same 11 years as well as for the thirty-year time period (1982–2011) when traffic congestion data were available. Controlling for the key variables found to be significant in the existing literature, our results suggest that the potential negative impact of traffic congestion on the economy does not deserve the attention it receives. Economic productivity is not significantly negatively impacted by high levels of traffic congestion. In fact, the results suggest a positive association between traffic congestion and per capita GDP as well as between traffic congestion and job growth at the MSA level. There was a statistically insignificant effect on per capita income. There may be valid reasons to continue the fight against congestion, but the idea that congestion will stifle the economy does not appear to be one of them.

     

Measuring marginal congestion costs of urban transportation: Do networks matter?

In determining the marginal cost of congestion, economists have traditionally relied upon directly measuring traffic congestion on network links, disregarding any “network effects,” since the latter are difficult to estimate. While for simple networks the comparison of the network-based congestion costs with the link-based ones can be done within a theoretical framework, it is important to know whether such network effects in real large-scale networks are quantitatively significant.In this paper we use a strategic transportation planning model (START) to compare marginal congestion costs computed link-by-link with measures taking into account network effects. We find that while in aggregate network effects are not significant, congestion measured on a single link is a poor predictor of total congestion costs imposed by travel on that link. Also, we analyze the congestion proliferation effect on the network to see how congestion is distributed within an urban area.     

Evaluation of congestion trends on chicago expressways

The growth in congestion on Chicago area expressways has had a major effect on almost all aspects of the region's economy, travel behavior and land-use development patterns. The objective of this study was to evaluate congestion trends on Chicago's expressways during the last decade (1980 to 1989) by quantifying the magnitude and tendencies of congestion for the various expressways. This study concentrated on an analysis of the minute-miles of congestion (MMC), a measure that provides an averaged section congestion during a given time period and that is continuously collected by the Illinois Department of Transportation for all Chicago-area expressways. The MMC offers a relatively accurate and unbiased estimate of the quantity and duration of congestion. In order to compare congestion trends on the area's ten major expressways in the 1980's it was decided to evaluate the yearly Cumulative Distribution Function of congestion. This analysis was conducted for both the inbound and outbound directions and for the A.M. and P.M. daily peak periods. The magnitude of congestion was found to increase considerably with the years from 1980 to 1989. The increase in congestion for “reverse commuting”, trips to the suburbs in the morning peak and from the suburbs in the evening peak, grew more substantially than the increase in the regular “city commute.” The reason for this phenomenon was the rise in job opportunities in the suburbs, resulting partially from increased congestion and reduced accessibility. Additional analysis showed that the duration of the peak period, defined by the time in which congestion exceeded a predetermined threshold level, was generally longer for the “city commuting” than for the “reverse commuting.” Comparison of congestion among seasons, showed that the most congested season was usually the spring (May 1 to June 15). The system analysis showed that the by 2000, the expected system congestion will be more than twice the 1980 system congestion.     

A traffic assignment model for a ridesharing transportation market

A nascent ridesharing industry is being enabled by new communication technologies and motivated by the many possible benefits, such as reduction in travel cost, pollution, and congestion. Understanding the complex relations between ridesharing and traffic congestion is a critical step in the evaluation of a ridesharing enterprise or of the convenience of regulatory policies or incentives to promote ridesharing. In this work, we propose a new traffic assignment model that explicitly represents ridesharing as a mode of transportation. The objective is to analyze how ridesharing impacts traffic congestion, how people can be motivated to participate in ridesharing, and, conversely, how congestion influences ridesharing, including ridesharing prices and the number of drivers and passengers. This model is built by combining a ridesharing market model with a classic elastic demand Wardrop traffic equilibrium model. Our computational results show that (i) the ridesharing base price influences the congestion level, (ii) within a certain price range, an increase in price may reduce the traffic congestion, and (iii) the utilization of ridesharing increases as the congestion increases. Copyright © 2014 John Wiley & Sons, Ltd.     

Traffic flooding the low countries: How the Dutch cope with motorway congestion

Motorway congestion is a common characteristic of the larger conurbations all over the world. Using the example of the Randstad region in The Netherlands, the causes and conditions for the growing congestion on main roads are presented and explained. From an international comparison it appears that the Randstad region is characterized by a relatively high density and high-access quality of its motorway network, giving rise to an extremely high level of usage. The Dutch policy of coping with the consequent congestion problems at the network design level is outlined, followed by a presentation of the dynamic traffic management approaches to these problems. Special attention is given to the so-called target group policy that aims at prioritizing specific user groups such as freight traffic and trucks. Finally, attention is given to the Dutch attempts to introduce congestion pricing as a means of tackling congestion.     

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.     

The Role of Tradable Credit Schemes in Road Traffic Congestion Management

Abstract

Road traffic congestion is not yet reflected in current market prices within the sector and has given rise to a number of instruments to mitigate the resulting negative impacts. The focus of this paper is the tradable credit scheme — an incentive-based economic measure — in order to address traffic congestion. The research questions are (1) whether the state-of-the-art in the literature suggests that tradable credit schemes could be feasibly introduced to mitigate congestion, and (2) whether a tradable credit scheme could have advantages over other instruments. A brief outline of congestion mitigation approaches is provided first to position this type of economic instrument with respect to other measures. The broad issues in the design of a tradable credit scheme are then presented. Most research to date has focused on the use of tradable credits to manage related pollution, but it is clear there is potential to design a scheme for traffic congestion management. To date this is a novel review of tradable credit schemes that has focused specifically on their role in road traffic congestion management.     

Distance-dependent congestion pricing for downtown zones

A growing literature exploits macroscopic theories of traffic to model congestion pricing policies in downtown zones. This study introduces trip length heterogeneity into this analysis and proposes a usage-based, time-varying congestion toll that alleviates congestion while prioritizing shorter trips. Unlike conventional trip-based tolls the scheme is intended to align the fees paid by drivers with the actual congestion damage they do, and to increase the toll’s benefits as a result.The scheme is intended to maximize the number of people that finish their trips close to their desired times. The usage-based toll is compared to a traditional, trip-based toll which neglects trip length. It is found that, like trip-based tolls, properly designed usage-based tolls alleviate congestion. But they reduce schedule delay more than trip-based tolls and do so with much smaller user fees. As a result usage-based tolls leave most of those who pay with a large welfare gain. This may increase the tolls’ political acceptability.     

No entry for congestion taxes?

This paper reviews some of the recent thinking on the theory of congestion taxes and considers some of the reasons why little practical interest has been shown in them despite the existence of an extensive academic literature. Recent developments in the theory suggest that the concept of an optimal congestion tax may be a somewhat utopian one, but if some measure of traffic restriction is desired, it is argued that congestion taxes have advantages over possible alternative non-pricing approaches. The costs of developing and operating congestion tax schemes are seen as a substantial deterrent to their use in practice, but it is argued that the political costs involved are perhaps of more fundamental significance.     

An assessment of the political acceptability of congestion pricing

There is renewed interest in implementing congestion pricing in metropolitan areas throughout the US. This paper reviews changes in the transportation policy environment that have led to this renewed interest and identifies the major interest groups that support congestion pricing. A case study is used to demonstrate that significant barriers to congestion pricing implementation continue to exist. The paper concludes with some suggestions for developing politically acceptable pricing alternatives.     

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.     

Mathematical characterization of spatiotemporal congested traffic patterns: mixed speed data analysis in the greater Toronto and Hamilton area,Canada

This paper formulates a comprehensive methodology for analyzing, quantifying and identifying congestion characteristics based on speed distribution. Utilizing vehicle speed data, a mathematical approach is applied, in order to characterize roadway segments, in terms of travel reliability, congestion severity and duration. We argue that the Gaussian mixture model (GMM) and its parameter combination is the appropriate tool if we are to obtain quantitative congestion measures and rank roadway performance. A significant contribution of our approach is that it is based on assumptions regarding mixed components as well as speed distribution and can be applied to large databases. We test our framework on the greater Toronto and Hamilton area in Ontario, Canada, and conclude that congestion quantification through the application of the GMM can be successfully accomplished. Results indicate that speed patterns differ significantly between counties as well as days of the week.     

Traffic and emissions impact of congestion charging in the central Beijing urban area: A simulation analysis

Congestion charging is being considered as a potential measure to address the issue of substantially increased traffic congestion and vehicle emissions in Beijing. This study assessed the impact of congestion charging on traffic and emissions in Beijing using macroscopic traffic simulation and vehicle emissions calculation. Multiple testing scenarios were developed with assumptions in different charging zone sizes, public transit service levels and charging methods. Our analysis results showed that congestion charging in Beijing may increase public transit use by approximately 13%, potentially reduce CO and HC emissions by 60–70%, and reduce NOx emissions by 35–45% within the charging zone. However, congestion charging may also result in increased travel activities and emissions outside of the charging zone and a slight increase in emissions for the entire urban area. The size of charging zone, charging method, and charging rate are key factors that directly influence the impact of congestion charging; improved public transit service needs to be considered as a complementary approach with congestion charging. This study is used by Beijing Transportation Environment and Energy Center (BTEC) as reference to support the development of Beijing’s congestion charging policy and regulation.     

Congestion and emissions mitigation: A comparison of capacity,demand, and vehicle based strategies

Capacity, demand, and vehicle based emissions reduction strategies are compared for several pollutants employing aggregate US congestion and vehicle fleet condition data. We find that congestion mitigation does not inevitably lead to reduced emissions; the net effect of mitigation depends on the balance of induced travel demand and increased vehicle efficiency that in turn depend on the pollutant, congestion level, and fleet composition. In the long run, capacity-based congestion improvements within certain speed intervals can reasonably be expected to increase emissions of CO₂e, CO, and NO_x through increased vehicle travel volume. Better opportunities for emissions reductions exist for HC and PM_2.5 emissions, and on more heavily congested arterials. Advanced-efficiency vehicles with emissions rates that are less sensitive to congestion than conventional vehicles generate less emissions co-benefits from congestion mitigation.     

Dealing with congestion from a regional perspective The case of Massachusetts

Traffic congestion has received considerable public and media attention over the past several years. However, many of the transportation and land use actions offered to deal with the congestion phenomenon focus only on a specific site or at most a subregion of the metropolitan area. This paper argues that congestion in many cases is an areawide phenomenon requiring consideration from a regional and programmatic viewpoint. A ten-point congestion-relief program developed for eastern Massachusetts is described. Actions in this program included those aimed to mitigate current congestion and avoid future congestion through land use management. Four policy areas are emphasized - providing transportation system improvements, managing transportation demand, managing land use, and managing the institutional and funding framework. The paper concludes that because of the political nature of the congestion problem, the congestion-relief program's importance lies more in the message it sends to the public that programmatic action is being taken. The paper also concludes that a regional approach is necessary thus requiring close examination of existing institutions, that demand management is an important component of the strategy, that the private sector has an important role to play, and that the long-term effectiveness of the program relates to the success of attempts to institutionalize efforts into zoning and permit procedures.     

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.     

Congestion and safety: A spatial analysis of London

A disaggregate spatial analysis, using enumeration district data for London was conducted with the aim of examining how congestion may affect traffic safety. It has been hypothesized that while congested traffic conditions may increase the number of vehicle crashes and interactions, their severity is normally lower than crashes under uncongested free flowing conditions. This is primarily due to the slower speeds of vehicles when congestion is present. Our analysis uses negative binomial count models to examine whether factors affecting casualties (fatalities, serious injuries and slight injuries) differed during congested time periods as opposed to uncongested time periods. We also controlled for congestion spatially using a number of proxy variables and estimated pedestrian casualty models since a large proportion of London casualties are pedestrians. Results are not conclusive. Our results suggest that road infrastructure effects may interact with congestion levels such that in London any spatial differences are largely mitigated. Some small differences are seen between the models for congested versus uncongested time periods, but no conclusive trends can be found. Our results lead us to suspect that congestion as a mitigator of crash severity is less likely to occur in urban conditions, but may still be a factor on higher speed roads and motorways.     

All minutes are not equal: travel time and the effects of congestion on commute satisfaction in Canadian cities

Despite decades of research, it is unclear under which circumstances travel is most onerous. While studies have found that some individuals derive positive utility from aspects of commuting, others have shown that traffic congestion can entail important time, monetary, and mental stress costs. Moreover, responses to traffic congestion-related stressors differs by individual characteristics. In response, this research captures how exposure to traffic congestion events, the duration of this exposure, and individual trait susceptibility to congestion affect the utility of commuting. Working through the lens of individual satisfaction with the duration of their commute, we show that not every minute of travel is valued the same by car commuters in Canadian cities. Results suggest a complex relationship between travel time, congestion, and individual predisposition to congestion-related stress. While improvements in travel time matter for increasing commute satisfaction, it is reductions in travel in congested conditions that matter most, particularly among those susceptible to congestion-related stressors.