Pruning and ranking the Pareto optimal set,application for the dynamic multi‐objective network design problem

Solving the multi‐objective network design problem (MONDP) resorts to a Pareto optimal set. This set can provide additional information like trade‐offs between objectives for the decision making process, which is not available if the compensation principle would be chosen in advance. However, the Pareto optimal set of solutions can become large, especially if the objectives are mainly opposed. As a consequence, the Pareto optimal set may become difficult to analyze and to comprehend. In this case, pruning and ranking becomes attractive to reduce the Pareto optimal set and to rank the solutions to assist the decision maker. Because the method used, may influence the eventual decisions taken, it is important to choose a method that corresponds best with the underlying decision process and is in accordance with the qualities of the data used. We provided a review of some methods to prune and rank the Pareto optimal set to illustrate the advantages and disadvantages of these methods. The methods are applied using the outcome of solving the dynamic MONDP in which minimizing externalities of traffic are the objectives, and dynamic traffic management measures are the decision variables. For this, we solved the dynamic MONDP for a realistic network of the city Almelo in the Netherlands using the non‐dominated sorting genetic algorithm II. For ranking, we propose to use a fuzzy outranking method that can take uncertainties regarding the data quality and the perception of decision makers into account; and for pruning, a method that explicitly reckons with significant trade‐offs has been identified as the more suitable method to assist the decision making process. Copyright © 2012 John Wiley & Sons, Ltd.     

How to road price in a world with electric vehicles and government budget constraints

In this paper we examine what characterizes second-best road prices targeting external costs from driving electric (EV) and conventional (ICEV) vehicles when there are distortionary labor taxes and binding government budget constraints. Further, we examine how this second-best pricing fits with government set goals of reducing CO₂ emissions. The paper further develops an analytical framework for assessing first- and second-best road prices on vehicle kilometers, extending it to include EVs and externalities that vary geographically and by time of day. We find that optimal road prices largely vary with external cost, but are also significantly affected by the interactions with the rest of the fiscal system. Not surprisingly, the highest road prices should be for ICEVs in large cities during peak hours due to high external costs. More surprisingly, we find that the road price for ICEVs in rural areas should be lower than that for EVs due to large fiscal interaction effects. These road prices give large welfare gains, but they lead to no reduction in carbon emissions when applying the currently recommended social cost of carbon.     

An Evaluation of the Accessibility Benefits of Commuter Rail in Eastern Massachusetts using Spatial Hedonic Price Functions

We estimate spatial hedonic price functions to examine local and regional accessibility benefits of commuter rail service in Eastern Massachusetts, while controlling for proximity-related negative externalities and other confounding influences. The data include 1,860 single-family residential properties from four municipalities with commuter rail service, and three municipalities without commuter rail service. We find some evidence of the capitalization of accessibility to commuter rail stations. Two model specifications suggest that properties located in municipalities with commuter rail stations exhibit values that are between 9.6% and 10.1% higher than properties in municipalities without a commuter rail station. With a third model we detect weak evidence of the capitalization of auto access time or walking time to the stations, suggesting that properties located within a one-half mile buffer of a station have values that are 10.1% higher than properties located outside of this buffer area and that an additional minute of drive time from the station is related to a decrease of 1.6% in property values. Our results also indicate that proximity to commuter rail right-of-way has a significant negative effect on property values, which suggests that for every 1,000 ft. in distance from the commuter rail right-of-way, property values are between $732 and $2,897 higher, all else held equal. At the mean sample values, this result translates into an elasticity of between 0.03 and 0.13, depending on the functional form of the hedonic price equation.     

"共有地悲剧"与绿色交通形成机制

交通具有共有资源的特性,没有排他性而有竞争性。交通竞争的失范和交通的外部性是造成交通“共有地悲剧”的内部和外部原因。发挥政府立法作用规范交通的竞争性,通过市场交易降低交通的负外部性,形成外部压力与内在诱导的双向激励机制,是利益共赢的绿色交通的形成机制。     

Residential moving intentions at highway locations: The trade-off between nuisances and accessibility in the Netherlands

This study investigates how highway nuisances are traded off against accessibility gains and other residential characteristics in the moving intentions of people living near highways. It studies a potential mediating role for residential satisfaction and potential mitigating relationships with highway nuisance perceptions. Structural Equation Modelling was used to test a proposed framework based on survey data collected from 1220 respondents living within 1000 m from a highway in the Netherlands.The results show that higher levels of perceived highway nuisances are associated with increased intentions to move, mediated by lower residential satisfaction. However, better perceived accessibility was not associated with either lower moving intentions or lower highway nuisance perception. Highway usage/interest and other residential characteristics – such as satisfaction with buildings, traffic safety, and amount of greenery – seem to countervail perceived highway nuisances as they reduce moving intentions and reduce highway nuisance perception. Finally, the results show that some groups – for example home owners – were less inclined to move (direct effect), independently of their residential satisfaction.From a practical perspective, a more inclusive perspective on highway planning, which accounts for accessibility and other residential characteristics as potential compensators and mitigators for highway nuisances, would be effective to reduce residential stress which could prevent protest and consequent cost overruns of projects.     

基于可达性指标的轨道交通外部性价值分析

城市轨道交通具有显著正外部效益,研究由此带来的价值,将有利于制定合理的城市轨道交通发展规划与融资模式。以大连市为例,基于可达性指标,建立特征价格模型,计算轨道交通外部性价值。模型结果得出城市轨道交通可达性指标提高,将使其正外部性效益增强,且合理的城市规划将极大提高城市轨道交通的外部性价值。     

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.     

Determinants of the willingness-to-pay for reducing the environmental impacts of road transportation

This paper examines the willingness-to-pay of people living in a number of villages in Navarre, in the Spanish Pyrenees to reduce noise and air pollution. Several models are used for estimation based on contingent valuation, noting that those living near roads are willing to pay more to reduce air and noise pollution. In addition, younger people, the better educated, and the more environmentally aware individuals are also willing to pay more to reduce those externalities.     

Part I: Externalities and economic policies in road transport

Road transport imposes negative externalities on society. These externalities include environmental and road damage, accidents, congestion, and oil dependence. The cost of these externalities to society is in general not reflected in the current market prices in the road transport sector.An efficient mobility model for the future must take into account the true costs of transport and its regulatory framework will need to create incentives for people to make sustainable transport choices. This paper discusses the use of economic instruments to correct road transport externalities, but gives relatively more weight to the problem of carbon emissions from road transport, as this is particularly challenging, given its global and long-term nature.Economics offers two types of instruments for addressing the problem of transport externalities: command-and-control and incentive-based policies.Command-and-control policies are government regulations which force consumers and producers to change their behaviour. They are the most widely used policy instruments. Examples include vehicle emission and fuel standards in the US as well as driving or parking restrictions in Singapore. The implementation cost of these instruments to the government is small. Although from an economic perspective these policies often fail to achieve an efficient market outcome, the presence of political constraints often make them the preferred option, in terms of feasibility and effectiveness.Economic theory shows how policies, which affect consumption and production incentives, can be used to achieve the optimal outcome in the presence of externalities. Incentive-based policies function within a new or an altered market. We first examine incentive-based policies, which cap the aggregate amount of the externality, such as carbon emissions, by allocating permits or rights to the emitters. The emitters are then free to trade their permits amongst them. The permit allocation mechanism is important-although market efficiency would be satisfied by an auction, political influences usually favour a proportional allocation based on historic emissions. We discuss EU ETS as an example of a cap-and-trade system, however, no such policy for CO₂ emissions in road transport has been implemented anywhere in the world to date.Fiscal instruments are, like command-and-control, widely used in road transport, because they are relatively cheap and simple to implement. They include the use of taxes and charges in order to bridge the gap between private and the social costs and, in principle, can lead to an efficient market solution. Registration, ownership, fuel, emissions, usage taxes, and parking and congestion charges have been implemented in many countries around the world. On the other side of the spectrum, subsidies can be given to those scrapping old cars and buying fuel-efficient vehicles. Some cities, such as London, have implemented congestion charges and many states in the United States have introduced high occupancy lanes. Other interesting possibilities include pay-as-you-drive insurance and other usage charges. However, the size and scope of taxes and subsidies are determined by governments, and because of their imperfect knowledge of the market the outcome is still likely to be inefficient.Governments have many effective economic instruments to create a sustainable road transport model. These instruments can be used separately or together, but their implementation will be necessary in the nearest future.     

How much should gasoline be taxed when electric vehicles conquer the market? An analysis of the mismatch between efficient and existing gasoline taxes under emerging electric mobility

The taxation of gasoline is characterized by large variability across countries and recent research has analyzed existing gasoline tax levels from an economic efficiency point of view focusing on conventional internal combustion engine vehicles. Most studies find that existing fuel tax rates do not coincide with economically efficient levels. As long as policymakers do not take action to reduce the resulting efficiency gap, there will be an ongoing welfare loss to the economy. However, the composition of passenger car fleets will probably be subject to fundamental changes in the (near) future due to the emergence of electric mobility. This raises the question of whether the mismatch between current and efficient fuel taxation will persist, shrink, or even exacerbate under emerging electric mobility. This paper aims at answering this question by determining the structure and level of optimal gasoline taxes in the presence of electric vehicles (EVs). First, the optimal (nationwide) gasoline tax is analytically derived employing a general equilibrium approach. It is shown that differences in traffic related marginal external costs among fuel powered cars and EVs affect the corrective Pigouvian component of the optimal gasoline tax while a differential tax treatment influences the fiscal rational of the tax. Second, the model is applied to Germany using differentiated data on e.g. external costs and behavioral responses. Under a wide range of scenarios, the present analyses indicate a strong relationship between optimal gasoline taxes and electric mobility, calling for a downward adjustment of efficient gasoline taxes. The effect is mainly driven by financial incentives for purchasing and using EVs. Since fuel is likely to be undertaxed in many countries, the emergence of electric mobility will therefore close the gap between gasoline taxes in place and economically efficient taxes. On the other side, it will increase the efficiency gap in those countries where gasoline is overtaxed. This also has important implications for policy concerned with environmental objectives. Pushing electric mobility seriously and at the same time taxing gasoline efficiently could actually prevent sufficient CO₂ emission savings. However, at least in the case of Germany, even a downward adjusted optimal gasoline tax under electric mobility is likely to be higher than the current (non-optimal) tax.