Institutional issues in planning for more uncertain futures

Future travel demand has always been difficult to estimate. Recent trends of a slow down or stagnation in traffic growth combined with substantial demographic, economic, and technological shifts further complicate that task. This poses a significant planning challenge given that decision-making is often based on the benefits of infrastructure investments which accrue over periods as long as 60 years. In contrast to the changing ideas around what mobility in the future will look like and the types of demand it may need to service, the practice of forecasting future travel demand remains largely unchanged as do the decision-making processes which flow from this. Alternative approaches to thinking about futures such as scenario planning exist but have had more limited deployment in the transport sector. This paper explores the institutional issues surrounding the purpose, practice and barriers to changing the approaches of forecasting and decision-making through an exploration of the state of practice in the UK drawing on interviews with 23 practitioners. Drawing on Hall’s work on policy change, the research finds that there is a strong policy paradigm built around the relationships between transport investment and traffic growth. This has strengthened since the recession with an increased focus on the relationship between transport and job creation. The forecasting approaches in use today are an important part of a complex decision-making apparatus reflective of specialized policy arenas like transport. Challenges in acknowledging, representing and communicating uncertainty are identified leaving a growing tension between planning visions and planning practice. We conclude by reflecting on events which may stimulate a broader reframing of how we plan for transport futures whilst embracing key uncertainties.

     

German transport policy after reunification

Due to the development after the reunification of Germany, the opening of Eastern Europe and the creation of the Single European Market, German transport policy is facing great challenges. We must not only cope with considerable increases in traffic but also with geographically reoriented traffic flows and structural changes. German transport policy will tackle these challenges of the future with the aid of five strategies: (a) the integration of the individual modes of transport; (b) the exploitation of the possibilities offered by modern technology; (c) investments in the construction of new traffic routes and the improvement of existing ones; (d) the consistent utilization of the forces of the market in the transport sector; (e) the protection of the environment and the enhancement of road safety. These strategies are a constituent part of an integrated overall transport concept, which will put Germany in a position to satisfy the evergrowing demands in the field of transport.     

Evolution over time of heavy vehicle volume in toll roads: A dynamic panel data to identify key explanatory variables in Spain

Improving the knowledge of demand evolution over time is a key aspect in the evaluation of transport policies and in forecasting future investment needs. It becomes even more critical for the case of toll roads, which in recent decades has become an increasingly common device to fund road projects. However, literature regarding demand elasticity estimates in toll roads is sparse and leaves some important aspects to be analyzed in greater detail. In particular, previous research on traffic analysis does not often disaggregate heavy vehicle demand from the total volume, so that the specific behavioral patterns of this traffic segment are not taken into account. Furthermore, GDP is the main socioeconomic variable most commonly chosen to explain road freight traffic growth over time. This paper seeks to determine the variables that better explain the evolution of heavy vehicle demand in toll roads over time. To that end, we present a dynamic panel data methodology aimed at identifying the key socioeconomic variables that explain the behavior of road freight traffic throughout the years. The results show that, despite the usual practice, GDP may not constitute a suitable explanatory variable for heavy vehicle demand. Rather, considering only the GDP of those sectors with a high impact on transport demand, such as construction or industry, leads to more consistent results. The methodology is applied to Spanish toll roads for the 1990–2011 period. This is an interesting case in the international context, as road freight demand has experienced an even greater reduction in Spain than elsewhere, since the beginning of the economic crisis in 2008.     

Does uncertainty make cost-benefit analyses pointless?

Cost-benefit analysis (CBA) is widely used in public decision making on infrastructure investments. However, the demand forecasts, cost estimates, benefit valuations and effect assessments that are conducted as part of CBAs are all subject to various degrees of uncertainty. The question is to what extent CBAs, given such uncertainties, are still useful as a way to prioritize between infrastructure investments, or put differently, how robust the policy conclusions of CBA are with respect to uncertainties. Using simulations based on real data on national infrastructure plans in Sweden and Norway, we study how investment selection and total realized benefits change when decisions are based on CBA assessments subject to several different types of uncertainty. Our results indicate that realized benefits and investment selection are surprisingly insensitive to all studied types of uncertainty, even for high levels of uncertainty. The two types of uncertainty that affect results the most are uncertainties about investment cost and transport demand. Provided that decisions are based on CBA outcomes, reducing uncertainty is still worthwhile, however, because of the huge sums at stake. Even moderate reductions of uncertainties about unit values, investment costs, future demand and project effects may increase the realized benefits infrastructure investment plans by tens or hundreds of million euros. We conclude that, despite the many types of uncertainties, CBA is able to fairly consistently separate the wheat from the chaff and hence contribute to substantially improved infrastructure decisions.     

Estimating traffic demand risk – A multiscale analysis

This paper proposes a novel method for estimating the traffic demand risk associated with transportation. Using mathematical properties of wavelets, we develop a statistical measure of traffic demand sensitivity with respect to GDP. This measure can be adapted in a flexible way to capture risk levels relevant for different investment horizons. We demonstrate the timescale decomposition of risk with Swedish traffic demand data for 1950–2005. In general, rail transport shows a stronger co-movement with GDP than road transport. Moreover, we examine the volatility exhibited by traffic demand. Our findings suggest that rail investments are more risky than road investments. Since the findings can be used for optimal investment timing and for choice between public investment alternatives, they are deemed important for public policy in general.     

Transport emissions and travel behaviour: A critical review of recent European Union and UK policy initiatives

There are clear signs of a shift in the UK transport policy in response to concerns about the environmental impacts of road transport and anxieties about the implications of the projected future growth in demand.Much of the framework of UK transport policy is now determined at the overall European Union level. To date most European legislation and policy proposals have been concerned with reducing the specific externalities associated with the transport sector, with none of the measures involved likely to have more than a marginal impact on the growth in demand. The emerging research evidence suggests however that the private costs of car use in Europe may fall substantially short of its total social costs and there is an important emerging policy debate about how this gap might be closed.The UK has introduced a policy package designed to reduce the growth of car travel and its environmental impact, within which land-use planning measures feature prominently. The land-use policies, which to some extent represent a reassertion of many traditional UK planning policies, include: an emphasis on focussing new development in urban areas, increasing residential densities, strengthening the role of existing centres and improving provision for walking and cycling.A number of factors will constrain the effectiveness of the package in practice. There are also concerns about its impact on key environmental objectives, including air quality. There are important questions too about the welfare effects of increasing densities and about the wider impacts of the package on economic efficiency.     

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.     

Transport infrastructure costs in low-carbon pathways

The rate and manner in which transport infrastructure (e.g. roads, railway tracks, airports) is deployed, will play an important role in determining energy demand, greenhouse gas emissions and the economic impact of the transport sector. This paper describes an exercise where the costs of infrastructure deployment for the transport sector have been incorporated into the IMACLIM-R Global E3 IAM. In addition to adding these costs, the modelling of the criteria for the deployment of infrastructure for roads has also been improved. It is found that this model recalibration results in a more accurate baseline as compared to historically observed data (2001–2013) for investments in energy demand, road infrastructure, and passenger kilometers travelled. Regarding macroeconomic effects, it is found that the imposition of a carbon emission trajectory to 2100 cause GDP to decrease relative to the newly calibrated baseline – this is a standard IAM result. However, when the deployment of infrastructure for roads and air travel is further constrained, the GDP loss is less than with a fixed carbon emission trajectory only. This is because early restriction of infrastructure for roads and air travel allows an expansion of public transport infrastructure which is adequate to meet low-carbon transport service demand whereas when less public transport infrastructure is available, more costly mitigation investments must be made in other parts of the economy. This suggests that restricting infrastructure deployment as a complementary policy to carbon pricing, lowers the cost of mitigation.     

Comparison of road freight transport trends in Europe. Coupling and decoupling factors from an Input–Output structural decomposition analysis

Decoupling road freight transport from economic growth has been acknowledged by the European Union as a key means to improving sustainability. It is therefore important to identify both the coupling and decoupling drivers of road freight transport demand in order to determine possible factors that may contribute to reduce road transport in the future without curbing economic development. This research proposes an Input–Output (IO) structural decomposition analysis (SDA) to explain road freight transport in terms of a set of key factors that have strongly influenced road freight demand in recent decades in European countries—such as economic growth, economic structure and the evolution of road transport intensity (including improvements in both supply and transport systems). This methodological approach allows us to quantify and compare their contribution in different European countries to either increase or decrease road freight transport demand. The empirical basis for this analysis is a dataset of nine European countries which have IO tables and road transport data available from 2000 to 2007, comprising data on domestic production, imports and exports as well as tonne-kms for 11 types of commodity classes. The results show that, as a whole, aggregate road transport demand has grown—driven mainly by economic activity—but this growth has been strongly curbed in some countries by changes in road freight transport intensity and moderately by the dematerialization of the economy. International transport has been also proven to be a key factor driving road freight transport volumes. Moreover, the increased penetration of foreign operators in national haulage markets appears to have reinforced the final decoupling levels observed in some cases.     

Determinants of modal choice in freight transport

In the next few years, exciting developments in the field of freight transport are likely to occur. The Channel Tunnel will be perceived as giving railways much greater distance of operation, compared to the current train ferry to/from Great Britain. The further development of swap-body technology will allow easier modal transfer and the creation, in 1992, of a single market in Europe will transform the pattern of trade. All of these are likely to have significant impacts on modal choice, and hence modal split, in freight transport. Reappraisal by many firms of the modes of transport used is likely but will it result in a net transfer of freight from road to rail and, if so, to what extent? To answer such questions, an accurate and reliable method of predicting modal split is required. Research in the past has concentrated on the development of modal split models based on generalised costs. These fail to explain adequately the prevalence of road freight in the UK. From surveys of freight managers within industry, it is clear that models to date rely too heavily on the economic cost factor and too little on behavioural factors (Jeffs 1985). This paper derives from a recent study of freight transport modal choice from the standpoint of the transport decision-maker within the firm. It attempts to shed light on the actual parameters which should be incorporated into a modal split model. Many variables appear to exert an influence on modal choice decision-making process. However, it is possible to categorise them into six main groups, namely: customer-requirements; product-characteristics; company structure/organisation; government interventions; available transport facilities; and perceptions of the decision-maker him/herself. It is the interactions and inter-relationships between these which ultimately determine freight modal split. This study has shown that the relationship between the outcome of the transport decision process and the values of particular determinants of modal split is not straight-forward, due to the complexity and variety of interactions involved. Perhaps one of the main reasons for researchers' failure hitherto to develop a successful modal-split model has been the preoccupation with techniques that rely on the development of common metric (e.g. generalised cost), which has led to the exclusion of some important explanatory variables along quite different dimensions. Another important issue concerns the appropriate level of aggregation. In order not to reduce the explanatory power of the key variables, it is important to work at a disaggregate level, although this does make substantial demands on data. The use of factor analysis enables both the aggregation of information without loss of behavioural reality and the specification of variables in terms of a common metric. In conclusion, freight transport has usually been examined within too narrow a framework. It must be placed firmly within the context of the total industrial process. The demand for freight transport is directly influenced by the level, composition and geographical distribution of production and consumption activities. Freight flows are complex and so it is highly unlikely that a universal mode-choice model can ever be developed. Future research should, therefore, be directed towards developing partial models in response to specific needs of those involved in decision-taking in the freight sector.     

Urban passenger transport in the United States and Europe: a comparative analysis of public policies

This is the second part of a two‐part series that examines recent developments in urban passenger transport in the United States and Europe, focusing on the roles and impacts of the public sector as these have varied by country and over time. The first part of the series described public policies for roadway systems and private car use, whereas this second part concentrates on public transport. After a review of demand and supply trends, the article evaluates government policies in terms of public vs private ownership and operation, public regulation, financing responsibility by government level, types and amounts of subsidy, and impacts of ownership, regulation, and financing arrangements on costs and productivity. This second part concludes with an overall comparison between Europe and the United States, and considers how Europeans and Americans might learn from each other's successes and mistakes in order to improve transport policies.     

A method to assess demand growth vulnerability of travel times on road network links

Many national governments around the world have turned their recent focus to monitoring the actual reliability of their road networks. In parallel there have been major research efforts aimed at developing modelling approaches for predicting the potential vulnerability of such networks, and in forecasting the future impact of any mitigating actions. In practice—whether monitoring the past or planning for the future—a confounding factor may arise, namely the potential for systematic growth in demand over a period of years. As this growth occurs the networks will operate in a regime closer to capacity, in which they are more sensitive to any variation in flow or capacity. Such growth will be partially an explanation for trends observed in historic data, and it will have an impact in forecasting too, where we can interpret this as implying that the networks are vulnerable to demand growth. This fact is not reflected in current vulnerability methods which focus almost exclusively on vulnerability to loss in capacity. In the paper, a simple, moment-based method is developed to separate out this effect of demand growth on the distribution of travel times on a network link, the aim being to develop a simple, tractable, analytic method for medium-term planning applications. Thus the impact of demand growth on the mean, variance and skewness in travel times may be isolated. For given critical changes in these summary measures, we are thus able to identify what (location-specific) level of demand growth would cause these critical values to be exceeded, and this level is referred to as Demand Growth Reliability Vulnerability (DGRV). Computing the DGRV index for each link of a network also allows the planner to identify the most vulnerable locations, in terms of their ability to accommodate growth in demand. Numerical examples are used to illustrate the principles and computation of the DGRV measure.     

Transport economics: A personal view

The field of transportation attracts individuals from diverse backgrounds, seeking to make contributions to policy, planning, operations and strategy. Economists are one of the more visible subsets of players, who bring a specific focus to the transport problem. The key theme of this paper is economic efficiency and ways that transport economics seeks to achieve efficient outcomes in the presence of markets and institutions that to varying degrees distort the potential to fulfil this primary goal. We review some of the recent contributions to the literatures on institutional and market reform, travel choice and demand. As we enter the next century, there is a sense of promoting ‘back to basics’ (and redefinition of what skills transport specialists will require) in seeking a better understanding of the role of markets and institutions in guiding the destiny of the transport sector.     

Valuing Freight Transport Time using Transport Demand Modelling: A Bibliographical Review

The value of time for freight transport is of major importance in infrastructure-related cost–benefit analysis and yet its study has been largely neglected when compared with its passenger counterpart. In fact, one of the attributes that could decide the profitability of a project is how much can be saved if freight vehicles use new infrastructure. Despite being the primary benefit of most investments in transport infrastructure, researchers have not yet reached agreement over either the size or the nature of the values of time that should be used when evaluating projects. This article provides a review of the estimation of freight value of time through transport demand modelling and extant empirical evidence on this topic. Similarly, the bibliographic review of studies undertaken has allowed us to pinpoint the most critical issues when modelling freight transport demand and the position of various research teams regarding these aspects. Such issues include identifying the decision-maker, heterogeneity in the transport flows and transport attributes considered by decision-makers.     

Urban transport policy development: two case studies in the Middle East

Abstract

The recent completion of two major transport studies of predominantly urban areas in the Middle East (Amman‐Jordan and Bahrain) has provided the opportunity to compare and contrast the transport characteristics of, and medium term transport policies for, the two areas.

While in structure the two transport systems have many similarities, their base year usage differs significantly. In view of the much lower income levels in Amman, and the resulting lower levels of car ownership, greater reliance is placed on public transport in Amman than in the more car‐oriented society in Bahrain. Against this background, and in the context of broadly similar overall levels of growth in travel demand, their development in the medium term future should follow different paths. Amman will need to depend on public transport very heavily, with only limited road building. Bahrain should be able to develop a satisfactory road system, with public transport playing its current role except for the provision of services for some relatively modest number of restrained private vehicle users. In both cases, however, substantial investment in off‐street parking spaces is needed.

The paper briefly describes the social and economic backgrounds of the two areas, and reviews the transport systems and the organisations responsible for them. Travel demand forecasts are summarized, leading to the transport plan and policy development. The prospects for implementation are discussed, and the paper lastly focuses on some aspects which are key to the development of the transport systems in the two countries.     

The implications of the sharing economy for transport

ABSTRACT

The sharing economy has gained a lot of attention in recent years. Despite the substantial growth in shared services, its impact overall on transport is unclear. This paper analyses the literature on sharing in transport and includes government and consultant reports, websites and academic journals. The drivers of ride-sharing, car-sharing, car-pooling and freight-sharing are largely economic and convenience related for participants. Trust, technology platforms and the trend to avoid ownership of assets are facilitating factors in its growth. Over-regulation, inconsistent quality of service and the need for recommendation are potential barriers. The transport journals in particular are relatively slow to research this topic with more focusing on bike-sharing than other modes of vehicle sharing. The paper discusses the impact of sharing on transport suggesting it is likely to be part of a solution to transport problems and congestion perhaps in combination with other developments such as driverless vehicles. It also warns of the dangers of over-regulation and under-regulation. The future will require holistic transport strategies that consider sharing options and will require government departments to work cooperatively.     

Solving the User Optimum Privately Owned Automated Vehicles Assignment Problem (UO-POAVAP): A model to explore the impacts of self-driving vehicles on urban mobility

Interest in vehicle automation has been growing in recent years, especially with the very visible Google car project. Although full automation is not yet a reality there has been significant research on the impacts of self-driving vehicles on traffic flows, mainly on interurban roads. However, little attention has been given to what could happen to urban mobility when all vehicles are automated. In this paper we propose a new method to study how replacing privately owned conventional vehicles with automated ones affects traffic delays and parking demand in a city. The model solves what we designate as the User Optimum Privately Owned Automated Vehicles Assignment Problem (UO-POAVAP), which dynamically assigns family trips in their automated vehicles in an urban road network from a user equilibrium perspective where, in equilibrium, households with similar trips should have similar transport costs. Automation allows a vehicle to travel without passengers to satisfy multiple household trips and, if needed, to park itself in any of the network nodes to benefit from lower parking charges. Nonetheless, the empty trips can also represent added congestion in the network. The model was applied to a case study based on the city of Delft, the Netherlands. Several experiments were done, comparing scenarios where parking policies and value of travel time (VTT) are changed. The model shows good equilibrium convergence with a small difference between the general costs of traveling for similar families. We were able to conclude that vehicle automation reduces generalized transport costs, satisfies more trips by car and is associated with increased traffic congestion because empty vehicles have to be relocated. It is possible for a city to charge for all street parking and create free central parking lots that will keep total transport costs the same, or reduce them. However, this will add to congestion as traffic competes to access those central nodes. In a scenario where a lower VTT is experienced by the travelers, because of the added comfort of vehicle automation, the car mode share increases. Nevertheless this may help to reduce traffic congestion because some vehicles will reroute to satisfy trips which previously were not cost efficient to be done by car. Placing the free parking in the outskirts is less attractive due to the extra kilometers but with a lower VTT the same private vehicle demand would be attended with the advantage of freeing space in the city center.     

Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain

Tolls have increasingly become a common mechanism to fund road projects in recent decades. Therefore, improving knowledge of demand behavior constitutes a key aspect for stakeholders dealing with the management of toll roads. However, the literature concerning demand elasticity estimates for interurban toll roads is still limited due to their relatively scarce number in the international context. Furthermore, existing research has left some aspects to be investigated, among others, the choice of GDP as the most common socioeconomic variable to explain traffic growth over time. This paper intends to determine the variables that better explain the evolution of light vehicle demand in toll roads throughout the years. To that end, we establish a dynamic panel data methodology aimed at identifying the key socioeconomic variables explaining changes in light vehicle demand over time. The results show that, despite some usefulness, GDP does not constitute the most appropriate explanatory variable, while other parameters such as employment or GDP per capita lead to more stable and consistent results. The methodology is applied to Spanish toll roads for the 1990–2011 period, which constitutes a very interesting case on variations in toll road use, as road demand has experienced a significant decrease since the beginning of the economic crisis in 2008.     

Persistence of walking in Chile: lessons for urban sustainability

ABSTRACT

An extensive body of work from the urban planning, health, and other disciplines has documented the importance of walking to urban sustainability from health, safety, security, environmental and other perspectives. These studies come mainly from countries in North America and Europe, where the majority of the population relies on cars for transportation. Notwithstanding, in many countries in the Global South, walking remains a majority transport mode, while cars increasingly dominate the urban streetscape, but are accessible only to a minority of the population. Chile provides fertile terrain for studying this phenomenon. This article reviews current practice and recent research of walking in Chile, in light of international findings regarding walkability, equity and urban sustainability. To elaborate an overview of the depth and breadth of walking in Chile, an interdisciplinary team conducted a literature review, examined relevant case study material from experience from Chile and in particular from Santiago, and triangulated this mainly qualitative data with results from the origin-destination survey applied in Chile’s main cities, Chilean traffic safety data) and results from official transport reports of other Latin American cities [Tirachini, A. (2019). South America: The challenge of transition. In J. Stanley & D. Hensher (Eds.), A research agenda for transport policy. Northampton, MA: Edward Elgar Publishing]. Findings show that despite priority public investments that have largely prioritised infrastructure for cars, walking in Chile has remained as the majority transport mode up until today, especially for lower-middle income groups, and particularly for care-related tasks performed mainly by women. In this sense, walking in Chile has proven remarkably persistent. The importance of walking as the main transport mode, against the odds, reflects economic, cultural, and urban form determinants, which are explored in this article. Furthermore, a recent upsurge in public interest and community design initiatives to improve walking, particularly the generation of a Chilean approach to “complete streets” has emerged, opening up opportunities to challenge Chile’s version of automobility in favour of more equitable, active and public transportation modes. There is, therefore, in Chile an opportunity to prioritise the walking mode, improve infrastructure for walkers and build from preserving current high pedestrian modal shares, rather than having to reverse widespread car use, as occurs in many countries in Europe and North America. This potential is highly relevant as these conditions are similar to those in other Latin American cities and, potentially, other cities elsewhere in the Global South.     

A survey of Hungarian transport policy

Abstract

In its introductory part this article discusses the principles of the transport policy approved in 1968, followed by the reasons behind the advances on this policy approved in 1978.

It then goes on to review the Hungarian transport pattern and organization, including the roles played by the railways, the road transport companies, the state‐owned enterprises as well as cooperatives, urban transport, shipping, air transport, pipelines, and private transport.

In discussing the division of labour (or market sharing) in transport it concludes that passenger transport is increasing slowly, while the proportion of private transport is continuing to rise. A moderate increase is expected in goods transport with a decline in the share of the railways and a rise in that of the other transport branches. This division of labour is being influenced by economic, not administrative, means.

The main target of the advanced transport policy is to shape a transport system which corresponds to socioeconomic requirements. This means that goods transport capacities must be put to more efficient use, which involves improving development, organizational and planning operations. In passenger transport priority must go to public transport while the proportion of private transport must be defined in keeping with demand and economic possibilities.

In the development of the infrastructure and investments, the need to improve energy use and protect the environment must be stressed.

The rest of the article presents the detailed reasoning behind the measures already taken and scheduled to be taken to achieve these main targets.