Truck freight demand elasticity with respect to tolls in New York State

Abstract

Road pricing is an important travel demand management strategy and its effects on transportation system has been widely investigated. Toll elasticity has been derived in the existing literature to characterize its effect on travel demand all around the world. However, very few studies have comprehensively analyzed the effect of tolls on freight transportation, which plays an increasingly important role in social and economic activities. To enrich the understanding of freight travel demand, this study conducted a stated preference survey on freight carriers who routinely use toll facilities. A regression model about freight carriers’ stated reduction in vehicle miles traveled (VMT) on toll roads is then developed. The elasticity value is derived and compared with values in existing literature. Based on the calibrated model, the VMT change in response to hypothetical toll price increases is simulated for New York State. The simulation results reveal important insights that will help policy makers design ideal freight demand management strategies.