A quantitative transportation project investment evaluation approach with both equity and efficiency aspects

The motivation of this study is to develop a method for evaluating transportation investment quantitatively with consideration of both efficiency and equity.     

Personal tradable carbon permits for road transport: Why, why not and who wins?

Personal road transport sector poses a significant challenge in reducing carbon emissions. This paper evaluates a policy approach known as personal tradable carbon permits to reduce carbon emissions from personal vehicles. The policy is a downstream tradable permit where individuals are allocated carbon emission caps. The policy is qualitatively evaluated in the context of carbon taxes and some upstream tradable permit options. The biggest disadvantage of such a policy is the initial set up costs. Personal tradable permits, however, are more effective than carbon taxes and are also capable of stabilizing the gasoline prices faced by the consumers when the underlying oil prices fluctuate. Since equity effects are often a concern to policy makers, the effect of such personal carbon permits on the distribution of burden is quantified in a partial equilibrium framework for the US population. Different permit allocation strategies are investigated in this regard. Using US consumer expenditure survey data, and incorporating a differentiated price response for different households, we find that all three allocation strategies considered are progressive: a per adult based allocation is the most progressive, a per vehicle allocation nearer to proportional, and a per capita allocation in between the two. Personal tradable permits therefore take care of equity concerns directly through the design of the policy.     

Non-discriminatory train dispatching in a rail transport market with multiple competing and collaborative train operating companies

Train dispatching is vital for the punctuality of train services, which is critical for a train operating company (TOC) to maintain its competitiveness. Due to the introduction of competition in the railway transport market, the issue of discrimination is attracting more and more attention. This paper focuses on delivering non-discriminatory train dispatching solutions while multiple TOCs are competing in a rail transport market, and investigating impacting factors of the inequity of train dispatching solutions. A mixed integer linear programming (MILP) model is first proposed, in which the inequity of competitors (i.e., trains and TOCs) is formalized by a set of constraints. In order to provide a more flexible framework, a model is further reformulated where the inequity of competitors is formalized as the maximum individual deviation of competitors’ delay cost from average delay cost in the objective function. Complex infrastructure capacity constraints are considered and modelled through a big M-based approach. The proposed models are solved by a standard MILP solver. A set of comprehensive experiments is conducted on a real-world dataset adapted from the Dutch railway network to test the efficiency, effectiveness, and applicability of the proposed models, as well as determine the trade-off between train delays and delay equity.     

Accessibility matters: Exploring the determinants of public transport mode share across income groups in Canadian cities

Planning for accessibility is increasingly considered in the development of equitable plans by transport agencies and it has also been shown to exert a positive influence on public transport use. However, this influence has not been examined across income groups and in different geographic regions of varying sizes. The present study measures the relationship between accessibility and mode choice for low- and higher-income groups in eleven Canadian metropolitan regions. Our results show that the impact of accessibility on public transport mode share is stronger and non-linear for the low-income group especially in the largest metropolitan areas, where increasing accessibility past a certain optimal value will lead to a decrease in public transport mode share. However, this point occurs at the 80th percentile of existing accessibility, so improvements in mode share are nonetheless expected with improved accessibility in most areas within these regions. Moreover, in regions where an optimal value is not readily observed, improved accessibility throughout the region would lead to increased uptake of public transport for both the higher- and to a greater extent, the low-income group. Findings from this paper can be of value to transport professionals working towards meeting ridership goals around the world as comparisons between groups and across regions highlight the variation in the impacts of accessibility on mode share.     

Measuring the equity effects of a carbon charge on car commuters: A case study of Manchester Airport

This papers attempts to quantify the equity effect of a hypothesized economic instrument, a carbon charge on car commuters, for reducing carbon dioxide emissions produced by commuters on airport surface access. Manchester Airport is taken as a case study using staff Survey data from 2008 and 2010. Consumer welfare change is analysed for measuring the equity effects of carbon charge by user group, which considers the changes of travel mode choice, the carbon dioxide emissions reduction, the revenue from a carbon charge and how it is distributed. First, the individual carbon footprint in terms of gram passenger kilometre, and the damage cost of carbon by commuters on airport surface access are estimated. Next, the impact of carbon charge on travel behaviour is investigated by the nested logit model. Finally, the net effect of carbon charges is assessed by travel mode user, gender, job type, and age group. The results show some impacts of the carbon charge on car users and carbon reduction, and the positive effects on lower income group and less carbon commuters. The quantified results provide the evidences for the mitigation policies to combine monetary incentives with disincentives for travel behaviour change, and demonstrate the different equity effects among commuter groups.     

Exploring transportation equity: Development and application of a transportation justice framework

Recent efforts to emphasize social equity in transportation are emerging as local, regional and national governments have set initiatives to identify, existing and potential, disproportionate impacts to low-income and minority populations, also referred to as transportation justice (TJ). Currently, there are suggested methods for identifying transportation justice areas; however, there is no streamlined method instituted across transportation agencies. Each jurisdiction identifies transportation justice (or environmental justice) areas based on their own methodology, typically based on either average regional thresholds, graduated thresholds, or a more unique in-house index methodology. This research explores and evaluates existing methods and develops a rigorous and comprehensive method called the Transportation Justice Threshold Index Framework (TJTIF) using Geographic Information Systems (GIS), as well as factors based on demographics, socio-economics, and transportation/land use. The framework is applied to a case study region in Pennsylvania reflective of the Marcellus Shale impact area, highlighting Sullivan County, PA. The methodology and the case study application serve as an example for how transportation agencies throughout the country can promote social sustainability and enhance transportation equity.     

Evaluating accessibility to Bangkok Metro Systems using multi-dimensional criteria across user groups

Metro systems act as fast and efficient transport systems for many modern metropolises; however, enhancing higher usage of such systems often conflicts with providing suitable accessibility options. The traditional approach of metro accessibility studies seems to be an ineffective measure to gage sustainable access in which the equal rights of all users are taken into account. Bangkok Metropolitan Region (BMR) transportation has increasingly relied on the role of two mass rapid transport systems publicly called “BTS Skytrain” and “MRT Subway”, due to limited availability of land and massive road congestion; however, access to such transit arguably treats some vulnerable groups, especially women, the elderly and disabled people unfairly. This study constructs a multi-dimensional assessment of accessibility considerations to scrutinize how user groups access metro services based on BMR empirical case. 600 individual passengers at various stations were asked to rate the questionnaire that simultaneously considers accessibility aspects of spatial, feeder connectivity, temporal, comfort/safety, psychosocial and other dimensions. It was interestingly found by user disaggregated accessibility model that the lower the accessibility perceptions—related uncomfortable and unsafe environment conditions, the greater the equitable access to services, as illustrated by MRT — Hua Lumphong and MRT — Petchaburi stations. The study suggests that, to balance the access priorities of groups on services, policy actions should emphasize acceptably safe access for individuals, cost efficient feeder services connecting the metro lines, socioeconomic influences and time allocation. Insightful discussions on integrated approach balancing different dimensions of accessibility and recommendations would contribute to accessibility-based knowledge and potential propensity to use the public transits towards transport sustainability.     

Just pricing: the distributional effects of congestion pricing and sales taxes

Those who oppose tolls and other forms of road pricing argue that low-income, urban residents will suffer if they must pay to use congested freeways. This contention, however, fails to consider (1) how much low-income residents already pay for transportation in taxes and fees, or (2) how much residents would pay for highway infrastructure under an alternative revenue-generating scheme, such as a sales tax. This paper compares the cost burden of a value-priced road, State Route 91 (SR91) in Orange County, California with the cost burden under Orange County’s local option transportation sales tax, Measure M. We find that although the sales tax spreads the costs of transportation facilities across a large number of people inside and outside Orange County, it redistributes about $3 million (USD) in revenues from less affluent residents to those with higher incomes. The entire Measure M program redistributes an estimated $26 million from low-income residents to the more affluent. Low-income drivers as individuals save substantially if they do not have to pay tolls, but as a group low-income residents, on average, pay more out-of-pocket with sales taxes.

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.     

Incorporating equity into the transit frequency-setting problem

This paper and the proposed formulation contribute to an apparent gap in transit research design by integrating equity considerations into the transit frequency-setting problem. The proposed approach provides a means to design transit service such that equitable access to basic amenities (e.g., employment, supermarkets, medical services) is provided for low-income populations or disadvantaged populations. The overarching purpose is to improve access via transit to basic amenities to: (1) reduce the disproportionate burden faced by transit dependent populations; and (2) create a more feasible transportation option for low-income households as an opportunity to increase financial security by reducing dependence on personal autos. The formulation is applied to data from a mid-sized US metropolitan area. The example application illustrates the formulation successfully increases access to employment opportunities for residents in areas with high percentages of low-income persons, as well as demonstrates the importance of considering uncertainty in the locations of populations and employment.