The impact of road pricing on housing prices: Preliminary evidence from Milan

Road pricing is increasingly used as an economic tool to decrease the burden of transport externalities. Following the examples of several cities worldwide, on 2nd January, 2008, the city of Milan introduced a charge for accessing the city centre with the aim of curbing air pollution and congestion. The aim of this paper is to evaluate empirically the effect of such a charge on the housing market. By applying a difference-in-differences methodology, I find empirical support for a decrease in housing prices in the coverage area.     

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 forecast air pollution model applied to a hypothetical urban road pricing scheme: An empirical study in Madrid

Reducing the air pollution from increases in traffic congestion in large cities and their surroundings is an important problem that requires changes in travel behavior. Road pricing is an effective tool for reducing air pollution, as reflected currently urban road pricing outcomes (Singapore, London, Stockholm and Milan). A survey was conducted based on establishing a hypothetical urban road pricing system in Madrid (a random sample size n = 1298). We developed a forecast air pollution model with time series analysis to evaluate the consequences of possible air pollution decreases in Madrid. Results reveal that the hypothetical road pricing for Madrid could have highly significant effects on decreasing air pollution outside of the city and in the inner city during the peak operating time periods of maximum congestion (morning peak hours from 7:00 to 10:00 and evening peak hours from 18:00 to 20:00). Furthermore, this system could have significant positive effects on a shift toward using public transport and non-motorized modes inside the hypothetical toll zone. This reveals that the system has a high capacity to motivate a decrease in air pollution and impose more sustainable behavior for public transport users.     

Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm

It is widely recognised that congestion pricing could be an effective measure to solve environmental and congestion problems in urban areas—a reform that normally also would generate a net welfare surplus. Despite this the implementation of congestion pricing has been very slow. One reason for a low public and political acceptance could be that equity impacts have not been given enough concern. In studies of distributional impacts of congestion pricing it has often been claimed that the reform is regressive rather than progressive even if there are studies claiming the opposite. We develop a method for detailed, quantitative assessment of equity effects of road pricing and apply it to a real-world example, namely a proposed congestion-charging scheme for Stockholm. The method simultaneously takes into account differences in travel behaviour, in preferences (such as values of time) and in supply of travel possibilities (car ownership, public transport level-of-service etc.). We conclude that the two most important factors for the net impact of congestion pricing are the initial travel patterns and how revenues are used. Differences in these respects dwarf differences in other factors such as values of time. This is accentuated by the fact that the total collected charges are more than three times as large as the net benefits. With respect to different groups, we find that men, high-income groups and residents in the central parts of the city will be affected the most. If revenues are used for improving public transport, this will benefit women and low-income groups the most. If revenues are used for tax cuts, the net benefits will be about equal for men and women on the average, while it naturally will benefit high-income groups. Given that it is likely that the revenues will be used to some extent to improve the public transport system, we conclude that the proposed congestion-charging scheme for Stockholm is progressive rather than regressive.     

Congestion and variable user charging as an effective travel demand management instrument

Interest at the political level in congestion charging is gaining pace as cities struggle with ways to reduce the effects of growing traffic congestion on the liveability of cities. Despite a long history of promotion of a wide array of travel demand management (TDM) initiatives, very few have had a noticeable impact on the levels of traffic on the road networks of metropolitan areas. TDM success in this context has almost become ‘band-aid’ in the absence of a pricing strategy that not only promotes efficient use of the system but also hypothecates revenues to support essential complementary infrastructure and services such as public transport. This paper takes a look at the stream of pricing consciousness that is surfacing around the world. Although very few jurisdictions have implemented congestion charging, or any form of efficient variable car and truck user charging, the winds of change are well in place. The adage “it is not a matter of if but of when” seems to be the prevailing view. Our overview of global trends in positioning the debate and hopefully follow-through commitment to implementation provides a backdrop to papers submitted for this special issue on travel demand management. The predominance of papers on pricing is indicative of the priority that must be given to efficient charging and revenue disbursement.     

The effect of the London congestion charge on road casualties: an intervention analysis

The introduction of the congestion charge in central London on the 17th of February, 2003, led to a reduction in congestion. One factor that has not been fully analysed is the impact of the congestion charge on traffic casualties in London. Less car travel within the charging zone may result in fewer traffic collisions, however, as the number of pedestrians, cyclists, and motorcyclists increased after the introduction of the congestion charge, the number of traffic casualties associated with these groups may also have increased. Reductions in congestion can also lead to faster speeds. Therefore, there could be increases in injury severity for those crashes that do occur. An intervention analysis was conducted to investigate the effect of the congestion charge on traffic casualties for motorists, pedestrians, cyclists, and motorcyclists, both within the charging zone and in areas of London outside the zone. This was done for killed and serious injuries (known as KSI in British terminology) and for slight injuries to examine whether there were any shifts in severity outcomes. Our results suggest no statistically significant effect for total casualties in London, but within the charging zone there has been a statistically significant drop in motorist casualties, and possibly an increase in cyclist casualties. There is an associated effect of an increase in casualties of motorcyclists and cyclists in some areas outside the charging zone, suggesting that changes in the design of the congestion charge may be needed to achieve reductions in casualties.

An advanced traveler general information system for Fresno,California

This study estimates the effects of an advanced traveler general information system (ATGIS), which includes fuel consumption and health-related emissions cost information on transportation network users’ travel choice behavior for recurrent congestion conditions. The effects are estimated using four different formulations based on four different behavioral assumptions. Incorporating stochastic features in link cost estimation rather than in route choice, we provide a novel modeling approach that enables us to use transportation planning models of major metropolitan areas without a need for major computationally-expensive changes in the existing models. We examined the effects of an ATGIS on the Fresno, CA, road network and found several interesting results. First, the ATGIS impact is closely related to pre-system (prior to the implementation of an ATGIS) perceived fuel and emissions costs. Total travel time in the city can be reduced by 17% (no pre-system perceived costs) to 1% (accurate pre-system perceived costs), and even increased by 1% (higher-than-actual pre-system perceived costs). Second, the addition of emissions costs, although negligible relative to fuel and time costs, can effectively reduce total system-wide travel time by up to 1% and fuel consumption by up to 0.6% during peak hours. Third, the ATGIS can reduce annual social costs by as much as $1053 million (high gas price, no pre-system perception) to $48 million (medium gas price, accurate pre-system perception), which are comparable to social cost savings by a congestion pricing (CP) scheme in the study area.     

Sensor location problems in path-differentiated congestion pricing

Path-differentiated congestion pricing is a tolling scheme that imposes tolls on paths instead of individual links. One way to implement this scheme is to deploy automated vehicle identification sensors, such as toll tag readers or license plate scanners, on roads in a network. These sensors collect vehicles’ location information to identify their paths and charge them accordingly. In this paper, we investigate how to optimally locate these sensors for the purpose of implementing path-differentiated pricing. We consider three relevant problems. The first is to locate a minimum number of sensors to implement a given path-differentiated scheme. The second is to design an optimal path-differentiated pricing scheme for a given set of sensors. The last problem is to find a path differentiated scheme to induce a given target link-flow distribution while requiring a minimum number of sensors.     

Explaining differences in acceptability before and acceptance after the implementation of a congestion charge in Stockholm

A field experiment was conducted in Stockholm where a congestion charge trial was introduced in 2006. Respondents completed a questionnaire before and after the trial. Acceptance of the congestion charge was higher after the trial as opposed to its acceptability judgments before the trial. Respondents believed the charge had more positive consequences (viz., decreasing parking problems, congestion, and pollution) and less negative consequences (viz., financial cost increases) after the trial than they had expected beforehand. Furthermore, we examined the relative importance of various beliefs for the acceptability of the congestion charge before and after it was implemented. Results are that before the implementation of the charge acceptability was significantly related to beliefs about the expected consequences for one’s own car use and financial costs, whereas acceptance after the trial was related to beliefs about the perceived consequences for one’s own car use and parking problems. These results indicate that acceptance of the congestion charge had increased because people experienced positive consequences of the charge. This conclusion is discussed in the broader context in which the Stockholm trial took place.     

The Gothenburg congestion charge. Effects,design and politics

This paper summarizes the traffic effects of the Gothenburg congestion charges introduced in 2013. The system is similar to the system introduced in Stockholm in 2006; both are designed as time-of-day dependent cordon pricing systems. We find that many effects and adaptation strategies are similar to those found in Stockholm, indicating a high transferability between smaller and larger cities with substantial differences in public transport use. However, there are also important differences regarding some of the effects, the accuracy of the model forecasts and public support arising from different topologies, public transport use, congestion levels and main objectives communicated to the public. Finally, the Gothenburg case suggests that whether congestion charges are introduced or not depends on the support among the political parties, and that this is determined primarily by the prevailing institutional setting and power over revenues, and to a lower extent by the public support, and benefits from congestion reduction.     

A framework to evaluate policy options for supporting electric vehicles in urban freight transport

Electric vehicles (EVs) are considered as a feasible alternative to traditional vehicles. Few studies have addressed the impacts of policies supporting EVs in urban freight transport. To cast light on this topic, we established a framework combining an optimization model with economic analysis to determine the optimal behavior of an individual delivery service provider company and social impacts (e.g., externalities and welfare) in response to policies designed to support EVs, such as purchase subsidy, limited access (zone fee) to congestion/low-emission zones with exemptions for EVs, and vehicle taxes with exemptions for EVs. Numerical experiments showed that the zone fee can increase the company’s total logistics costs but improve the social welfare. It greatly reduced the external cost inside the congestion/low-emission zone with a high population, dense pollution, and heavy traffic. The vehicle taxes and subsidy were found to have the same influence on the company and society, although they have different effects with low tax/subsidy rates because their different effects on vehicle routing plans. Finally, we performed a sensitivity analysis. Local factors at the company and city levels (e.g., types of vehicle and transport network) are also important to designing efficient policies for urban logistics that support EVs.     

A traffic congestion detection and information dissemination scheme for urban expressways using vehicular networks

The cooperative vehicle-infrastructure technologies have enabled vehicles to collect and exchange traffic information in real time. Therefore, it is possible to use Vehicular Ad-hoc NETworks (VANETs) for detecting traffic congestion on urban expressways. However, because of the special topology of urban expressways (consisting of both major and auxiliary roadways), the existing traffic congestion detection methods using VANETs do not work very well. In addition, the existing dissemination methods of congestion information lack the necessary control mechanism, so the information may be disseminated to irrelevant geographical areas. This paper proposes a congestion detection and notification scheme using VANETs for urban expressways. The scheme adopts a simplified Doppler frequency shift method to estimate and differentiate traffic conditions for major and auxiliary roadways. Vehicular cooperation and human cognition are introduced to improve the estimation accuracy and to describe the overall traffic conditions. Additionally, the scheme develops a spatial–temporal effectiveness model based on the potential energy theory to control the dissemination area and survival time of the congestion information. Meanwhile, the proposed scheme uses several broadcast control mechanisms to alleviate vehicular network congestion. Simulations through TransModeler indicate that our scheme ensures the accuracy of the estimation of congestion degree. Consequently, the scheme can provide effective references for driving decision-making and path-planning.     

Accuracy of the Gothenburg congestion charges forecast

This paper explores the accuracy of the transport model forecast of the Gothenburg congestion charges, implemented in 2013. The design of the charging system implies that the path disutility cannot be computed as a sum of link attributes. The route choice model is therefore implemented as a hierarchical algorithm, applying a continuous value of travel time (VTT) distribution. The VTT distribution was estimated from stated choice (SC) data. However, based on experience of impact forecasting with a similar model and of impact outcome of congestion charges in Stockholm, the estimated VTT distribution had to be stretched to the right. We find that the forecast traffic reductions across the cordon and travel time gains were close to those observed in the peak. However, the reduction in traffic across the cordon was underpredicted off-peak. The necessity to make the adjustment indicates that the VTT inferred from SC data does not reveal the travellers’ preferences, or that there are factors determining route choice other than those included in the model: travel distance, travel time and congestion charge.     

An impact analysis of traffic image information system on driver travel choice

A driver is one of the main components in a transportation system that influences the effectiveness of any active demand management (ADM) strategies. As such, the understanding on driver behavior and their travel choice is crucial to ensure the successful implementation of ADM strategies in alleviating traffic congestion, especially in city centres. This study aims to investigate the impact of traffic information dissemination via traffic images on driver travel choice and decision. A relationship of driver travel choice with respect to their perceived congestion level is developed by an integrated framework of genetic algorithm–fuzzy logic, being a new attempt in driver behavior modeling. Results show that drivers consider changing their travel choice when the perceived congestion level is medium, in which changing departure time and diverting to alternative roads are two popular choices. If traffic congestion escalates further, drivers are likely to cancel their trip. Shifting to public transport system is the least likely choice for drivers in an auto-dependent city. These findings are important and useful to engineers as they are required to fully understand driver (user) sensitivity to traffic conditions so that relevant active travel demand management strategies could be implemented successfully. In addition, engineers could use the relationships established in this study to predict drivers’ response under various traffic conditions when carrying out modeling and impact studies.     

Commuters’ acceptance of and behavior reactions to license plate restriction policy: A case study of Tianjin,China

License plate restriction (LPR) policies are currently being implemented in major Chinese cities with the aim of mitigating traffic congestions. Meanwhile, much controversy regarding the effectiveness of the LPR policies is arising. To better understand the impact of the LPR policies, this paper studies commuters’ acceptance of and behavior reactions to the policies after their implementation. A theoretical model was proposed as the first step, followed by a questionnaire survey that was conducted in Tianjin, China, where an LPR policy has been in place since March 2014. Car owners frequently commuting within the restricted area were sampled as respondents, and a multi-variable regression method was employed to analyze the collected survey data. The results indicate that it is necessary to promote public’s acceptance of the LPR policy, because lower acceptance will lead to more negative reactions towards the policy, which may weaken its effectiveness. Main factors affecting the level of acceptance of the policy are also found, which may serve as a reference for transportation authorities seeking to increase commuters’ acceptance of the policy. These findings are beneficial to designing and implementing LPR policies.     

Quantifying drivers’ acceptance of renewable fuel standard: Results from a choice experiment in South Korea

The production and use of renewable fuels in the transport sector are rapidly increasing. Renewable fuel standard (RFS) is a strong regulatory component and quantitative policy expected to have a significant market impact. In Korea, RFS implementation was agreed upon in July 2013 and will be enforced beginning in July 2015. Drivers’ acceptance is the most important consideration for RFS introduction and sustainable implementation. This study analyzed Korean customer preferences for RFS and quantified their acceptance level according to policy design. A choice experiment was analyzed with a mixed logit model to reflect the heterogeneity of respondents’ preferences. Respondents were relatively sensitive to the price increase, while other attributes had little effect on acceptance of RFS. Differences between the influences of attributes on drivers’ acceptance should be considered when designing RFS implementation. Furthermore, it is recommended that the price of transportation fuels should be limited to an increase between KRW 10 and 20/liter (USD 8.879 × 10⁻³ and 1.776 × 10⁻²/liter) to ensure high acceptance level, secure a budget for infrastructure, and achieve substantial environmental improvement.     

Factors driving public support for road congestion reduction policies: Congestion charging,free public transport and more roads in Stockholm,Helsinki and Lyon

Based on an across-the-board survey conducted among residents of Stockholm, Helsinki and Lyon, we explore the opinions on three policy measures to combat road congestion: congestion charging, free public transport and building more roads. The support for the two latter policies is substantially higher than the support for congestion charging, which is only supported by a majority in Stockholm. Self-interest is important for the formation of the opinion to all three policies. However, fundamental values and general political views, indicated by four attitudinal factors, are even more important in forming opinions towards the three transport policies. Of all attitudinal factors, the one indicating environmental concern most influences the support for all policies. Equity concerns, however, increase the support for free public transport and opposition to taxation increases the support for building more roads.Our results further suggest that the opinions towards free public transport and building more roads can be mapped along the left–right political axis, where Environment and Equity are to the left and Pricing and Taxation are to the right. However, the opinion towards congestion charging cuts right through the political spectrum. The impact of the fundamental values and self-interest variables are similar for Stockholm and Helsinki, indicating that even if experience increases the overall support for charging, it does not change the relative strength of different political arguments to any major extent.     

Travel mode choices in small cities of China: A case study of Changting

The existing literature on urban transportation planning in China focuses primarily on large cities and neglects small cities. This paper aims to fill part of the knowledge gap by examining travel mode choice in Changting, a small city that has been experiencing fast spatial expansion and growing transportation problems. Using survey data collected from 1470 respondents on weekdays and weekends, the study investigates the relationship between mode choice and individuals’ socio-economic characteristics, trip characteristics, attitudes, and home and workplace built environments. While more than 35 percent of survey respondents are car owners, walk, bicycle, e-bike, and motorcycle still account for over 85 percent of trips made during peak hours. E-bike and motorcycle are the dominant means of travel on weekdays, but many people shift to walking and cycling on weekends, making non-motorized and semi-motorized travel especially important for non-commuting trips. Results of multinomial logistic regression show that: (1) job-housing balance might exert different effects on mode choice in different types of urban areas; (2) negative attitude towards e-bike and motorcycle is associated with more walking and cycling; and (3) land use diversity of workplace is related to commuting mode choice on weekdays, while land use diversities of both residential and activity places do not significantly affect mode choice on weekends. Our findings imply that planning and design for small cities needs to differentiate land use and transportation strategies in various types of areas, and to launch outreach programs to shift people’s mode choice from motorized travel to walking and cycling.     

Differentiated congestion pricing of urban transportation networks with vehicle-tracking technologies

This paper explores a new type of congestion pricing that differentiates users with respect to their travel characteristics or attributes, and charges them different amounts of toll accordingly. The scheme can reduce the financial burden of travelers or lead to more substantial reduction of congestion. Given that the scheme requires tracking vehicles, an incentive program is designed to mitigate travelers’ privacy concerns and entice them to voluntarily disclose their location information.     

Modeling travel behavior by the structural relationships between lifestyle,built environment and non-working trips

In the context of sustainable urban transport in developing countries, individuals’ travel behavior faces multiple factors which influence their mobility patterns. Recognizing these factors could be a favorable method to organize more regular and sustainable trip patterns. This study aims to identify the less well-known lifestyle along with more popular built environment as the main factors which shape travel behaviors. Employing data from 900 respondents of 22 urban areas in city of Shiraz, Iran, this paper explores travel behaviors as non-working trip frequencies by different modes. Results of structural equation model indicate a strong significant effect of individual’s lifestyle patterns on their non-working trips. However, built environment impact on travel behavior is small compared to lifestyle. Besides, other variables such as travel attitudes and socio-economic factors stay crucial in the mode choice selection. These findings indicate the necessity of regarding lifestyle orientations in travel studies as well as objective factors such as land use attributes.