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.     

The acceptability of road pricing in Vienna: the preference patterns of car drivers

The acceptability of road pricing has attracted considerable attention among researchers over the last decade, as is evident in the amount of literature about transport and environmental economics. The general conclusion from these studies has been that there is low acceptability for road pricing among car users. In this paper, we add more knowledge to the existing literature by conducting an acceptability study of road pricing in Vienna, where such a study has never been conducted before. We used a replication study approach where a previous approach used in the EU research project AFFORD (acceptability of fiscal and financial measures and organisational requirements for demand management) was replicated for Vienna and further supplemented with a conjoint analysis. In order to examining whether the Vienna study confirms previous findings. We investigated the acceptability of two concrete policy packages factors influencing this acceptability, and preference patterns that can be used in designing a road pricing policy for Vienna. The survey reveals a higher acceptability if road pricing schemes lead to perceived personal benefits. According to the multivariate analyses, the “personal outcome expectations”, “social norm” and “perceived effectiveness” variables account for more than 50 % of the criterion variance and therefore these are the most influential factors. Road pricing schemes can be an effective transport management instrument for a city particularly if they are associated with direct investment in public transport and public infrastructure. Thus, personal benefits can be perceived more easily and direct effects can be expected.     

Welfare effects of road pricing and traffic information under alternative ownership regimes

This paper models strategic interactions between a road supplier, a provider of traffic information, and road users, with stochastic travel times. Using a game-theoretical analysis of suppliers’ pricing strategies, we assess the social welfare effects of traffic information under various ownership regimes. The results show that the distortive welfare effect of monopolistic information pricing appears relatively small. Collusion of the road operator and information provider yields higher social welfare than independent pricing by two firms. The intuition behind this result resembles that behind the welfare effects of double marginalization, but is not exactly the same, as traffic information is not strictly complementary to road use.     

On the perceived justice of urban road pricing: An empirical study in Lyon

Various methods of restricting automobile traffic, by price (tolls) or by quantity (odd/even license plates or limited days of traffic), are tested in a survey (N ～ 400) about attitudes toward traffic restrictions in Lyon, France. Ordered probit models with random-effects panel allow us to estimate the survey respondents’ perceptions of these methods, as well as the roles of individual socio-demographic characteristics in the formation of these perceptions. Both the restriction of automobile traffic and its regulation by congestion (waiting in line) are widely considered unjust by the respondents, regardless of whether they work and whether they are drivers or non-drivers. Their attitudes towards tolls justified by the pollution caused by automobile traffic are less negative. As regards compensation, in addition to emergency vehicles and those that transport people with limited mobility, respondents believe car-pooling ought to benefit of a toll exemption. The support for a reduced rate for low-income users shows a concern for justice to which it will be necessary to respond. The respondents’ socio-professional status, level of education, car use or non-use, and residence inside or outside of the toll zone clearly play a role in their perceptions of these methods of regulation and compensation.     

On the relationship between airport pricing models

Airport pricing papers can be divided into two approaches. In the traditional approach the demand for airport services depends on airport charges and on congestion costs of both passengers and airlines; the airline market is not formally modeled. In the vertical-structure approach instead, airports provide an input for an airline oligopoly and it is the equilibrium of this downstream market which determines the airports’ demand. We prove, analytically, that the traditional approach to airport pricing is valid if air carriers have no market power, i.e. airlines are atomistic or they behave as price takers (perfect competition) and have constant marginal operational costs. When carriers have market power, this approach may result in a surplus measure that falls short of giving a true measure of social surplus. Furthermore, its use prescribes a traffic level that is, for given capacity, smaller than the socially optimal level. When carriers have market power and consequently both airports and airlines behave strategically, a vertical-structure approach appears a more reasonable approach to airport pricing issues.     

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.     

Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model

This paper compares performances of cordon- and area-road pricing regimes on their social welfare benefit and equity impact. The key difference between the two systems is that the cordon charges travellers per crossing whereas the area scheme charges the travellers for an entry permit (e.g. per day). For the area licensing scheme, travellers may decide to pay or not to pay the toll depending on the proportion between their travel costs for the whole trip-chains during a valid period of the area license and the toll level. A static trip-chain equilibrium based model is adopted in the paper to provide a better evaluation of the area-based tolls on trip-chain demands. The paper proposes a modified Gini coefficient taking in account assumptions of revenue re-distribution to measure the spatial equity impact. The model is tested with the case study of the Utsunomiya city in Japan. The results demonstrate a higher level of optimal tolls and social welfare benefits of the area-based schemes compared to those of the cordon-based schemes. Different sizes of the charging boundary have significant influences on the scheme benefits. The tests also show an interesting result on the non-effect of the boundary design (for both charging types) on their equity impacts. However, when comparing between charging regimes it is clear that the area schemes generate more inequitable results.     

Air pollution dynamics and the need for temporally differentiated road pricing

In this paper we investigate the effects of the temporal variation of pollution dispersion, traffic flows and vehicular emissions on pollution concentration and illustrate the need for temporally differentiated road pricing through an application to the case of the congestion charge in Stockholm, Sweden. By accounting explicitly for the role of pollution dispersion on optimal road pricing, we allow for a more comprehensive view of the economy–ecology interactions at stake, showing that price differentiation is an optimal response to the physical environment. Most congestion charges in place incorporate price bands to mitigate congestion. Our analysis indicates that, to ensure compliance with air quality standards, such price variations should also be a response to limited pollution dispersion.     

Responses to complex pricing signals: Theory,evidence and implications for road pricing

There is a potential tension between the theoretical desirability of highly differentiated tariff structures and the ability of consumers to respond effectively to them. Evidence from studies of road pricing schemes and tolls, from other transport modes, and from other industries (notably telecommunications), is reviewed and its transferability assessed. Relevant models of human decision making (notably Prospect Theory, Risk Aversion, Ambiguity Avoidance and Bounded Rationality) are explored, and the use and efficiency of heuristics to deal with complex situations is discussed.It is concluded that people have a strong preference for simple tariffs but that they are able to respond to quite complex tariffs provided that they have a clear and logical structure. However, people’s difficulties in estimating distance will severely limit the accuracy of their estimates of distance-based charges and their response to complex pricing signals will be influenced by their attitude to the fairness of the charge. These conclusions are summarised in a general model of response to complex prices.The paper, which reports and extends a study conducted for the UK Department for Transport, concludes by considering the implications for the design and performance of road pricing schemes (an inherent problem being that the theoretically optimum, first-best, pricing structure might be so complicated and dynamically variable that it would be unreasonable to expect road users to predict, let alone respond to, the prices on any given road at any given time – a simpler pricing structure might therefore yield a better overall result).     

Exploring the relationship between vehicle safety and fuel efficiency in automotive design

Panel data analysis is used within a fixed effect model to examine the relationship between vehicle safety ratings and fuel efficiency of 45 new vehicle models sold in the US between 2002 and 2007. While conventional wisdom and most early literature suggest that lighter, more fuel efficient vehicles are less safe to their occupants, the tests show a positive relationship between vehicle safety ratings and fuel efficiencies not only within and across most size classes but also for vehicles produced by both the US and Asian automakers. We also explore the design initiatives by manufacturers to compensate for the reductions in weight/size of fuel-efficient vehicles.     

Exploring low carbon transition pathways for the UK road transport sector

This paper uses an analytical framework of multi-level and multi-phase perspectives to explore low carbon transition pathways for the UK road transport system. The work draws on the impact made by the national (UK) and regional (EU) low carbon policy instruments on the UK road sector. The results show that the transformation pathway, which is at the take-off phase on a large scale, is the only fully active pathway. The transformation is mainly characterized by the adoption of biofuel blends and hybrid electric vehicles, as well as niche technologies. For the emergence of an ideal low carbon road system in the UK, it is shown that the transformation pathway is insufficient and the likely pathway sequence to full decarbonization will be transformation-substitution-de-alignment/re-alignment. However, the dynamics that can favour a smooth process of this sequence will demand a range of active niche technologies and strong government intervention.     

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.     

Valuing time and reliability: assessing the evidence from road pricing demonstrations

This paper compares results from evaluations of two recent road pricing demonstrations in southern California. These projects provide particularly useful opportunities for measuring commuters’ values of time and reliability. Unlike most revealed preference studies of value of time, the choice to pay to use the toll facilities in these demonstrations is relatively independent from other travel choices such as whether to use public transit. Unlike most stated preference studies, the scenarios presented in these surveys are real ones that travelers have faced or know about from media coverage. By combining revealed and stated preference data, some of the studies have obtained enough independent variation in variables to disentangle effects of cost, time, and reliability, while still grounding the results in real behavior. Both sets of studies find that the value of time saved on the morning commute is quite high (between $20 and $40 per hour) when based on revealed behavior, and less than half that amount when based on hypothetical behavior. When satisfactorily identified, reliability is also valued quite highly. There is substantial heterogeneity in these values across the population, but it is difficult to isolate its exact origins.     

Congestion charges and retail revenues: Results from the Stockholm road pricing trial

This paper studies the impact of the Stockholm road pricing trial on retail revenues. The analysis is performed using revenue data from 14 shopping malls, 9 within the tool area and 5 outside the tool area. The data also include revenue data from a sample of retail stores located along the main shopping streets in Stockholm. The results show that the Stockholm road pricing trial did not negatively affect retail revenue, neither in shopping malls nor in the sample of retail stores.     

Exploring relationships between driving events identified by in-vehicle data recorders,infrastructure characteristics and road crashes

There is an increasing interest in technology-based solutions that can assist drivers in reducing their risk of involvement in road crashes. Previous studies showed that driving events produced by in-vehicle data recorders (IVDR) are applicable for identification of unsafe driving patterns, while combined examinations of driving events and road infrastructure characteristics are rare. This study explored the relationship between the IVDR-driving events, road characteristics and crashes, to examine a potential of the events for predicting crashes and identification of high-risk locations on the road network. The study database included 3500 segments of the interurban roads in Israel, for which the automatically produced IVDR events were matched with road infrastructure characteristics and crashes. Negative-binomial regression models were adjusted for the relationships between road characteristics and driving events, and subsequently, between events and crashes, given the exposure. Significant impacts were found, yet various event types showed different relations to the infrastructure characteristics and different effects on crashes, on various road types. Better road conditions were associated with a decrease in “braking” events and an increase in the “speed alert” events, where road layout constraints and junction proximity were associated with an opposite effect on events. “Braking” and total events showed better potential for predicting crashes on single-carriageway roads, with a positive link to crashes, where for other road types the “speed alert” events were stronger related to crashes, but with a negative link. The heterogeneity of findings indicates a need in further research of the above relationship, with a particular focus on definitions of driving events produced by the IVDR or other technologies.     

Some advances in model design developed for the practical assessment of road pricing in Hong Kong

The methods used in a study commissioned by the Hong Kong Government to assess the impacts of road pricing schemes in the territory are outlined. Three aspects of the methodology are described in more detail. First, a programme of social research is outlined, which assisted in the understanding of the likely responses to road pricing and hence guided the tasks of assessment framework design, policy option identification and model design. Next, one area of model development is described, involving the use of stated preference survey techniques to estimate a work trip time adjustment model. The final area highlighted involved the development of speed/flow relationships based on an area network concept.     

The demand curve under road pricing and the problem of political feasibility: A comment

This paper contains a comment on an article by Professor Lave, recently published in this journal (Transpn Res. 28A, 83–91, 1994). Lave's approach towards analyzing the political feasibility of road pricing is challenged on several grounds. In a simple setting, where individual road users are identical in terms of private cost of driving and valuation of time, Lave's approach is seen to be, although less clear, in essence equivalent to the traditional textbook analysis. In a more complex setting, where differences across individuals are allowed for, his approach is seen to suffer from lacking recognition of differences in individual marginal utilities of income.     

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.     

Evaluating the benefits of a combined route guidance and road pricing system in a traffic network with recurrent congestion

When drivers do not have complete information on road travel time and thus choose their routes in a stochastic manner or based on their previous experience, separate implementations of either route guidance or road pricing cannot drive a stochastic network flow pattern towards a system optimum in a Wardropian sense. It is thus of interest to consider a combined route guidance and road pricing system. A road guidance system could reduce drivers' uncertainty of travel time through provision of traffic information. A driver who is equipped with a guidance system could be assumed to receive complete information, and hence be able to find the minimum travel time routes in a user-optimal manner, while marginal-cost road pricing could drive a user-optimal flow pattern toward a system optimum. Therefore, a joint implementation of route guidance and road pricing in a network with recurrent congestion could drive a stochastic network flow pattern towards a system optimum, and thus achieve a higher reduction in system travel time. In this paper the interaction between route guidance and road pricing is modeled and the potential benefit of their joint implementation is evaluated based on a mixed equilibrium traffic assignment model. The private and system benefits under marginal-cost pricing and varied levels of market penetration of the information systems are investigated with a small and a large example. It is concluded that the two technologies complement each other and that their joint implementation can reduce travel time more efficiently in a network with recurrent congestion.