Labour market effects in assessing the costs and benefits of road pricing

Traffic congestion and the policies used to combat it have been studied extensively. One area which has received less attention is the secondary impacts of such policies. This paper uses a micro-simulation framework to study the effect on labour markets of road pricing. The key benefit of our chosen methodology is that it allows a simultaneous consideration of both commuting and migration decisions. We show that while welfare gains can be achieved through optimal charging, this may come at the price of decreased integration. This may manifest through either greater centralisation tendencies in population, or through unemployment disparities between regions.     

Distributional effects of road pricing: Assessment of nine scenarios for Paris

The starting point of this paper is to consider that there is no general answer to the question of the equity of urban road pricing. We therefore simulate and compare the distributional effects on commuters of nine toll scenarios for Paris, assuming that utility is nonlinear in income. We show that the distributional pattern across income groups depends crucially on the level of traffic reduction induced by tolling. Stringent tolls are more favourable to low-income motorists. Equity effects also vary with toll design. Compared to a reference scenario which uniformly charges all motorists driving within Paris, an inbound cordon toll is detrimental to low-incomes. Conversely, granting a rebate to low CO₂ emission cars slightly improves their situation while an exemption for Paris residents is neutral. Surprisingly, it matters little for social equity whether toll revenues are allocated to all commuters or solely to public transport users.     

The reciprocal relationship between policy debate and media coverage: The case of road pricing policy in the Netherlands

This study examined the changes in the media coverage of two road pricing schemes proposed in the Netherlands in the period 1998–2010, as well as the link between the media coverage and the policy debate. Both pricing proposals were debated for several years and neither was introduced. Our findings show that space allocation for type of overall tone (e.g. negative or positive towards a pricing proposal) and the range of issues and policy actors in the media coverage were very different for the two proposals, and for each proposal fluctuated greatly over time. Our analysis suggests that such a variation in the media coverage was a reflection of changes in the content of the policy debate (e.g. caused by the specific design features of pricing proposal under discussion, the different policy actors engaged in the debate and their messages about the proposal). This indicates that policymakers can influence the media coverage of road pricing policies to some extent by managing the policy debate. Our findings also show not only that changes in the content of the policy debate were reflected in the media coverage, but also that the media coverage influenced the policy debate: the statements or actions of policy actors received media coverage, which then in turn stimulated the policy debate. However, the influence of media on the policy debate was rather indirect, in that policy actors mostly reacted to the messages from other policy actors reported in the media and to a lesser extent to the media coverage itself.     

The socio-cognitive links between road pricing acceptability and changes in travel-behavior

The objective of this study is to examine the effect of road pricing on people’s tendency to adapt their current travel behavior. To this end, the relationship between changes in activity-travel behavior on the one hand and public acceptability and its most important determinants on the other are investigated by means of a stated adaptation experiment. Using a two-stage hierarchical model, it was found that behavioral changes themselves are not dependent on the perceived acceptability of road pricing itself, and that only a small amount of the variability in the behavioral changes were explained by socio-cognitive factors. The lesson for policy makers is that road pricing charges must surpass a minimum threshold in order to entice changes in activity-travel behavior and that the benefits of road pricing should be clearly communicated, taking into account the needs and abilities of different types of travelers. Secondly, earlier findings concerning the acceptability of push measures were validated, supporting transferability of results. In line with other studies, effectiveness, fairness and personal norm all had a significant direct impact on perceived acceptability. Finally, the relevance of using latent factors rather than aggregate indicators was underlined.     

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.     

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.     

Modelling the effects of road pricing on traffic using ERP traffic data

Singapore’s Electronic Road Pricing (ERP) system involves time-variable charges which are intended to spread the morning traffic peak. The charges are revised every three months and thus induce regular motorists to re-think their travel decisions. ERP traffic data, captured by the system, provides a valuable source of information for studying motorists’ travel behaviour. This paper proposes a new modelling methodology for using these data to forecast short-term impacts of rate adjustment on peak period traffic volumes. Separate models are developed for different categories of vehicles which are segmented according to their demand elasticity with respect to road pricing. A method is proposed for estimating the maximum likelihood value of preferred arrival time (PAT) for each vehicle’s arrivals at a particular ERP gantry under different charging conditions. Iterative procedures are used in both model calibration and application. The proposed approach was tested using traffic datasets recorded in 2003 at a gantry located on Singapore’s Central Expressway (CTE). The model calibration and validation show satisfactory results.     

Spatial impacts of road pricing: Accessibility, regional spillovers and territorial cohesion

Road pricing policies are gaining prominence in EU countries. These policies have positive impacts leading to mobility patterns which are socially and environmentally more desirable, but they also have negative impacts. One negative impact is to be found in regional accessibility, due to the increase in generalized transport costs. This study presents a methodology based on accessibility indicators and GIS to assess the accessibility impacts of a road pricing policy. The methodology was tested for the Spain’s road network considering two road pricing scenarios. It enables not only the more penalized regions to be identified but also negative road pricing spillover effects between regions. These effects are measured in terms of accessibility changes occurring in one region produced by charges implemented in another region. Finally, the study of accessibility disparities (by calculating inequality indexes for each of the scenarios considered), provides policymakers with useful information regarding the impact of road pricing policies from the point of view of territorial cohesion.     

The impact of metro services on housing prices: a case study from Beijing

Assessment of the impact of metro systems on housing prices is important for financing transport infrastructure via value capture. This paper provides evidence for this relationship, focusing particularly on the effects of metro services, and uses the large city of Beijing, China, as a case study. A spatial error model was applied to 2835 samples of online property sales data obtained in January 2016. Three transport service indicators associated with metro transfers and waiting times were explored: (1) metro headway, (2) access to different metro lines and (3) accessibility to employment opportunities. The results show that areas with more employment opportunities via public transit have higher housing prices than other areas. Shorter metro headways are positively related to housing prices near stations. Housing prices for neighborhoods having access to more than one metro line within 800 m-buffer area are higher than those without access to metro lines, controlling for number of accessible jobs within 30 min. This study sheds light on the importance of metro services on housing prices. It has implications for further research and for the planning policies of metro-dependent cities.

     

The impact of flooding on road transport: A depth-disruption function

Transport networks underpin economic activity by enabling the movement of goods and people. During extreme weather events transport infrastructure can be directly or indirectly damaged, posing a threat to human safety, and causing significant disruption and associated economic and social impacts. Flooding, especially as a result of intense precipitation, is the predominant cause of weather-related disruption to the transport sector. Existing approaches to assess the disruptive impact of flooding on road transport fail to capture the interactions between floodwater and the transport system, typically assuming a road is fully operational or fully blocked, which is not supported by observations. In this paper we develop a relationship between depth of standing water and vehicle speed. The function that describes this relationship has been constructed by fitting a curve to video analysis supplemented by a range of quantitative data that has be extracted from existing studies and other safety literature. The proposed relationship is a good fit to the observed data, with an R-squared of 0.95. The significance of this work is that it is simple to incorporate our function into existing transport models to produce better estimates of flood induced delays and we demonstrate this with an example from the 28^th June 2012 flood in Newcastle upon Tyne, UK.     

Distinguishing the land use effects of road pricing based on the urban form attributes

This paper studies the effects of road pricing on land use under different development scenarios (business as usual scenario and transit oriented development scenario) by a quantitative method, which combines the integrated land use and transport interaction model (TRANUS model) with the scenario-planning techniques. Moreover, in order to further analyze the differences of the land use effects of road pricing on traffic analysis zones (TAZs) with different urban form attributes, a quantitative classification method combining factor analysis and cluster analysis is then used to quantitatively classify TAZs. The results demonstrate that the effects of road pricing on the land use of a specific region depend on the urban form attributes of the region. The higher the densities of employments and population, and better street design (high densities of street and intersections) and public transportation condition, the less the region is negatively affected by road pricing, and vice versa. More importantly, rail transit can alleviate the negative impact of road pricing on commercial development and population concentration of the region. Therefore, before introducing a road pricing policy, it is necessary to develop public transport system, especially rail transit.     

Optimization of transport investment and pricing policies: the role of transport pricing in network design

This paper investigates the role of transport pricing in network design and describes two facts about flow pattern in a transportation system. The first, illustrated by an example of Braess paradox, is that adding a new link to the network does not necessarily minimize the total travel time. The second is that introducing of appropriate toll pricing may reduce not only the total network time but also the travel time for each individual traveller. It follows with the investigations of different system objectives and different pricing policies (only toll pricing and distance‐based pricing are considered), and shows how they affect the system performance and flow pattern. Lastly, a systematic optimization process is proposed for integrated planning of transport network and pricing policies.     

Estimating commuter mode choice: A discrete choice analysis of the impact of road pricing and parking charges

Automobile use leads to external costs associated with emissions, congestion, noise and other impacts. One option for minimizing these costs is to introduce road pricing and parking charges to reduce demand for single occupant vehicle (SOV) use, while providing improvements to alternatives to encourage mode switching. However, the impact of these policies on urban mode choice is uncertain, and results reported from regions where charging has been introduced may not be transferable. In particular, revealed preference data associated with cost recovery tolls on single facilities may not provide a clear picture of driver response to tolls for demand management. To estimate commuter mode choice behaviour in response to such policies, 548 commuters from a Greater Vancouver suburb who presently drive alone to work completed an individually customized discrete choice experiment (DCE) in which they chose between driving alone, carpooling or taking a hypothetical express bus service when choices varied in terms of time and cost attributes. Attribute coefficients identified with the DCE were used in a predictive model to estimate commuter response to various policy oriented combinations of charges and incentives. Model results suggest that increases in drive alone costs will bring about greater reductions in SOV demand than increases in SOV travel time or improvements in the times and costs of alternatives beyond a base level of service. The methods described here provide an effective and efficient way for policy makers to develop an initial assessment of driver reactions to the introduction of pricing policies in their particular regions.     

Distributional impacts of road pricing: The truth behind the myth

This paper shows that road pricing can be regressive, progressive or neutral, and refutes the generalised idea that road pricing is always regressive. The potential distributional impacts of a road pricing scheme are assessed in three English towns. It is found that impacts are town specific and depend on where people live, where people work and what mode of transport they use to go to work. Initial impacts may be progressive even before any compensation scheme for losers is taken into account. When the situation before the scheme is implemented is such that majority of drivers entering the area where the scheme would operate come from households with incomes above the average, it can be expected that, once the scheme is implemented, these drivers coming from rich households will continue to cross the cordon and will be prepared to pay the charge. In such a case the overall effect will be that on average, rich people will pay the toll and poor people will not.     

The impact of transport pricing policy on individual energy consumption: a modeling case study in Kumamoto

To investigate the impact of traffic pricing policies on energy consumption, this study shows a microeconomic quantitative analysis scheme to simulate individual consumption behaviors from a microeconomic viewpoint. Energy consumption is estimated based on individual demand of non‐mobility goods and mobility goods under nine policy scenarios based on strategies of gasoline tax adding and mass transit fare reduction independently or combined. Results show that gasoline tax adding has strong effects on consumption behaviors. Energy consumption reduces mostly because of less consumption of non‐mobility goods and car trips. However, policy of mass transit fare reduction has limited impact on energy saving because consumption of non‐mobility goods and mass transit trips increases, but the number of car trips decline by only a small percentage. Comparing with single‐type policy, policies that combined gasoline tax adding and mass transit fare reduction show less energy consumption. Findings suggest that policies that increase cost of car trips, such as gasoline tax adding, are very helpful to reduce the consumption of non‐mobility goods and car trips, which contribute to less energy consumption. However, reducing cost of mass transit trips suggests limited effect on energy saving. Copyright © 2015 John Wiley & Sons, Ltd.     

The development of a policy for road tax in Turkey, using a genetic algorithm approach for demand estimation

This study deals, first, with estimation of transport demand based on Genetic Algorithm (GA) approach, and then deals with the evaluation of the road tax system in Turkey. It proposes an alternative road tax policy. The total transport demand is estimated based on population, Gross Domestic Product per Capita (GDPPC), and vehicle-number. Three forms of the Genetic Algorithm Transport Demand Estimation for Tax Revenues (GATDETR) are developed, of which one is linear, and the second and third are exponential forms of the mathematical expressions. The best-fit GATDETR model in terms of total minimum relative average errors between observed and estimated values are selected for future demand estimation. The evaluation of the road tax system and policy proposal is made based on estimated demand. The Distance-Based-Taxation (DBT) system is proposed in order to control highway transport. With the DBT system, some road users may wish to use railway. Thus, we re-organize the railways in order to meet the demand, but this requires new fund. The DBT system may help to create to this fund. It may also help to develop fair-taxation for the road users. Results show that the GA can be used to model transport demand and hence income tax in future transports planning. This study also suggests that planning the taxation in highway transport may help to ease funding problem of railway system.     

Modeling the impact of government guarantees on toll charge,road quality and capacity for Build-Operate-Transfer (BOT) road projects

Government guarantees are frequently used to attract private investors’ participation into Build-Operate-Transfer (BOT) road projects. In this paper, we investigate the impact of government guarantees on toll charge, road quality and road capacity by taking perspective of the private investor. The main results are: (1) Minimum traffic guarantee increases toll charge while decreasing road quality. Under a low guarantee level, minimum traffic guarantee has no impact on road capacity. However, it improves road capacity when a high guarantee level is performed. (2) Under minimum revenue guarantee, if the guarantee level is sufficiently high, the optimal toll charge will be sufficiently large, but road quality and road capacity will approach zero. (3) Price compensation guarantee decreases toll charge and increases both road quality and road capacity. This paper further investigates the impact of government guarantees when the contract is auctioned. We find that auction reduces the impact of government guarantees on toll charge while failing to affect the impact of government guarantees on road quality and capacity. Some policy implications are also derived from our model results.     

The environmental impact caused by road access to Timanfaya Natural Park on Lanzarote Island

This paper evaluates the impact of road transport usage in accessing the Timanfaya Natural Park on Lanzarote Island, and its implications for sustainable tourism development. This evaluation is based on projections of the trip matrix estimated for Lanzarote Island. First, we estimate the global environmental impact, or the contribution of the road transport required for accessing the natural park to climate change. The methodology employed is the Ecological Footprint indicator. The study analyses how to manage the impact of road access to tourist activities through a price intervention; i.e. fuel tax. Redesigning the public transport supply is proposed as an alternative to the pricing policy. Finally, conclusions are drawn.     

Pricing local emission exposure of road traffic: An agent-based approach

This paper proposes a new approach to iteratively calculate local air pollution exposure tolls in large-scale urban settings by taking the exposure times and locations of individuals into consideration. It explicitly avoids detailed air pollution concentration calculations and is therefore characterized by little data requirements, reasonable computation times for iterative calculations, and open-source compatibility. In a first step, the paper shows how to derive time-dependent vehicle-specific exposure tolls in an agent-based model. It closes the circle from the polluting entity, to the receiving entity, to damage costs, to tolls, and back to the behavioral change of the polluting entity. In a second step, the approach is applied to a large-scale real-world scenario of the Munich metropolitan area in Germany. Changes in emission levels, exposure costs, and user benefits are calculated. These figures are compared to a flat emission toll, and to a regulatory measure (a speed reduction in the inner city), respectively. The results indicate that the flat emission toll reduces overall emissions more significantly than the exposure toll, but its exposure cost reductions are rather small. For the exposure toll, overall emissions increase for freight traffic which implies a potential conflict between pricing schemes to optimize local emission exposure and others to abate climate change. Regarding the mitigation of exposure costs caused by urban travelers, the regulatory measure is found to be an effective strategy, but it implies losses in user benefits.     

A cross-country study of fairness and infringement on freedom as determinants of car owners' acceptance of road pricing

Jakobsson et al. (2000) found that in Sweden public acceptance of road pricing decreases if it is perceived to be unfair and to infringe on freedom. The present study reports a survey investigating whether the same effects are found in the Asian countries of Japan and Taiwan. The results indicate that fairness plays the same role. However, income had a direct effect on acceptance in Taiwan but not in Japan or Sweden.