Cordon Pricing Scheme Research Articles

Modeling traffic dynamics in periphery-downtown urban networks combining Vickrey's theory with Macroscopic Fundamental Diagram: user equilibrium, system optimum, and cordon pricing

This paper constructs a dynamic model for a periphery-downtown urban network combining Vickrey's theory with Macroscopic Fundamental Diagram (MFD) to capture interactions between the peripheral traffic and the downtown, and to examine how travelers on different corridors compete for the downtown road resources in the context of dynamic user equilibrium. In no-toll equilibrium if existing, when there exists no congestion delay in the downtown area, the departures for each corridor are regulated only by its bottleneck's capacity on the periphery of the downtown area, as occurred in Vickrey's bottleneck model, whereas when the downtown accumulation goes beyond the critical value, the departures for each corridor are constrained not only by its bottleneck's capacity but also by the downtown congestion level, regulated by all corridors’ departures in turn. We show that under specific assumptions, at the system optimum, the entrances at the boundary of the downtown area should be running at their full capacities before the onset of the downtown congestion, and the downtown network should be operating upon the onset of the downtown congestion at the critical accumulation with maximum production and highest traveling speed. Two optimal time-varying cordon pricing schemes (entrance-independent and entrance-dependent respectively) are developed to minimize the total social cost, which includes the queuing time costs concerning all corridors, the moving time cost in the interior of the downtown area, and schedule delay cost. What's more, the two time-varying cordon tolls to support the system optimum are analyzed from practical views. In the end, analytical results are illustrated and verified with numerical experiments.

A Model for Cordon Pricing Scheme Considering Spatial Equity

A Model for Cordon Pricing Scheme Considering Spatial Equity

Cordon Pricing Scheme Based on Macroscopic Fundamental Diagram and Distance

To alleviate traffic congestion in key areas, such as city centers, this study proposes an optimal pricing strategy that is based on the distance that users travel in a given cordon. The proposed strategy is derived from the theory of the macroscopic fundamental diagram (MFD). In this strategy, a non-negative, nondecreasing, and nonlinear distance-toll function is defined by a piecewise linear approximation method. A bilevel programming model is then constructed on the basis of the toll charge function and the characteristics of the MFD. The upper model considers the overall operating efficiency of the system and aims to maximize the outflow of the road network. The lower model assumes that user route choice behavior complies with Wardrop’s first principle to formulate a user equilibrium model under a fixed demand. In view of the nonadditive property of path cost imposed by the nonlinear distance-toll function, the network transformation technique is used to realize the conversion between real networks and virtual networks. The Frank-Wolfe algorithm based on road segments is then used to solve the lower model. The verification of the reasonable feasibility of the pricing model and algorithm reveals that the implementation of cordon pricing schemes based on distance can make the outflow of the border area maintain the best level. Moreover, the obtained optimal charge function makes the system run efficiently. These results prove that the nonlinear optimal toll charge function is realistic and effective.

Cordon tolling for mixed traffic flow

This study develops a cordon tolling model for mixed traffic flow including motorcycle and automobile trips with multiple origins to one destination. A simultaneous differential equation system is employed to solve two trip functions with elastic demand. This model can thus analyze the interaction between different road users on the same road. No-toll equilibrium, optimal pricing by maximizing welfare, and cordon tolling solutions are analyzed. It is shown that the tolls of automobile trips and motorcycle trips are related to the size of the modes for any location of users in the first-best optimum regime. In the case of the Taipei metropolitan area, the cordon pricing scheme yields a similar relation for the tolls of both modes regardless of the differences in the parameters of demand and cost for the two types of trips. This study can provide a reference for decision-making for transportation policies in some Asian cities with mixed traffic of motorcycles and automobiles.

Analysis of a joint entry- and distance-based cordon pricing scheme: a dynamic modeling approach

Transportation demand management (TDM) covers strategies for reducing traffic congestion within the affected urban areas. Congestion pricing includes a branch of TDM strategies; among them, the entry-based cordon pricing, i.e., applying charge on entry, is the most popular because of practicality and social acceptance. Many researchers have investigated different second-best approaches for evaluations of cordon pricing plans, mostly by applying static traffic assignment methods. In this paper, a joint entry- and distance-based scheme is proposed to circumvent the deficiencies intrinsic to each. The optimal joint design is considered as the solution to an optimization problem, in which an equilibrium dynamic traffic assignment model is used to take account of flow variations and represent congestion effects more realistically. The problem is solved for the network of Sioux Falls by using an enumeration algorithm, and the solution is compared with those obtained for distinct entry- and distance-based schemes. Based on the results, the joint tolling has the best performance in reducing the total travel time of the travelers and in alleviating the congestion level inside the cordoned area, while generating a higher level of revenue from tolls. Furthermore, the numerical experiments show the unreliability of the results by static against dynamic modeling approach.

Activity-Based Approach for the Design of Sustainable Area and Cordon Pricing Schemes

Background Vehicle-generated emissions remain a serious threat to public health, and a major contributing factor to climate change. In response to this situation, several cities around the world have successfully reduced vehicle emissions by implementing area and cordon-based pricing (ACP). Despite these successes, designing ACP schemes continues to be a challenging task given the complexities of estimating the multidimensional effects of this type of strategy. Existing transportation network design methodologies focus primarily on congestion-related goals, and employ an aggregate representation of travel demand. However, the assessment of the public health impacts of vehicle emissions requires information on disaggregate travel and activity participation behavior, as well as spatially and temporally varying pollutant concentrations; existing methodologies do not meet the planning needs of agencies interested in determining the optimal design of ACP schemes that explicitly account for both congestion and public health. Methods We propose an optimization model that can be used by transportation planning agencies to determine optimal charging boundary locations and toll levels with the objective of reducing the health impacts of vehicular traffic and improve mobility. The proposed ACP design problem is formulated as a bi-level, simulation-based optimization model. The problem's upper-level is composed of the policy makers’ goals (i.e., health and mobility objectives). The travelers’ responses to the policy maker's decisions, as well as the resulting system-wide impacts, are analyzed in the lower-level. The lower-level model system is composed of five sub-models: (a) a disaggregate activity-based travel behavior model to simulate the agents’ behavioral response to ACP specifications, (b) a traffic assignment model to estimate the distribution of traffic in the network, (c) a traffic emissions model, (d) a pollutant dispersion model, and (e) a health impact assessment model to estimate the changes in public health risks resulting from ACP schemes. The proposed methodology is computationally expensive given the type of models being combined. Therefore, we present a multi-objective, surrogate-based optimization approach that is intended to accelerate the discovery of good solutions to the design problem. Results An illustrative application of the proposed methodology is presented using Chicago as a case study. As expected, preliminary results suggest that there is a tradeoff between improving travel mobility objectives and reducing traffic's public health impacts. Conclusions The proposed methodology can be an important tool for transportation planners. Further research is necessary to refine the different parameters and strategies used in the solution algorithm.

Equity Effects of Congestion Charges: An Exploratory Analysis with MATSim

This paper shows an application of the multiagent, activity-based transport simulation MATSim to evaluate equity effects of a congestion charging scheme. A cordon pricing scheme was set up for a scenario of the city of Zurich, Switzerland, to conduct such an analysis. Equity is one of the most important barriers toward the implementation of a congestion charging system. After the challenges posed by equity evaluations are examined, it is shown that agent-based simulations with heterogeneous values of time allow for an increased level of detail in such evaluations. Such detail is achieved through a high level of disaggregation and with a 24-h simulation period. An important difference from traditional large-scale models is the low degree of correlation between travel time savings and welfare change. While traditional equity analysis is based on travel time savings, MATSim shows that choice dimensions not included in traditional models, such as departure time changes, can also play an important role in equity effects. The analysis of the results in light of evidence from the literature shows that agent-based models are a promising tool to conduct more complete equity evaluations not only of congestion charges but also of transport policies in general.

Reducing traffic externalities by multiple-cordon pricing

The second-best congestion pricing schemes including common optimum, one cordon, and multiple cordons schemes are compared with the first-best optimum pricing scheme. A cross-subsidy effect exists in these second-best pricing models. However, the scheme with more cordons will diminish the cross-subsidy and approach an efficient and equitable outcome. The relative efficiency of a cordon pricing scheme for the case of Taipei metropolis is very high. One single cordon yields excellent performance of 93% relative efficiency. There might be some factors causing the good results: the uncongested traffic condition, the linear unit distance cost in traffic flow forming a nonlinear cost function, and the trip demands with continuous space and the same destination (the central business district) in the network.

Cordon Pricing Considering Air Pollutants Emission

This paper considers the issue of air pollutants emission for the optimal and sustainable determination of cordon location, toll level, and price of park and ride (P&R). Although air pollutants emission decreases within the cordon by the implementation of cordon pricing scheme, it may increase outside the cordon and the whole network. Hence, air pollutants emission may only transfer from inside of the cordon to its outside. Therefore, in this paper, a multi-objective bi-level optimization model is developed. A solution algorithm is also presented based on the second version of strength Pareto evolutionary algorithm (SPEA2). The results reveal that this multi-objective model can be a useful tool for the sustainable and optimal design of the cordon and P&R scheme. In addition, cordon pricing is a multi-objective problem. Therefore, it is necessary to consider air pollutants emission. By choosing another non-dominated result in the solution space, air pollutants emission outside the cordon and the whole network can be reduced without a significant reduction in social welfare.

Development of a Model for a Cordon Pricing Scheme Considering Environmental Equity: A Case Study of Tehran

Congestion pricing strategy has been recognized as an effective countermeasure in the practical field of urban traffic congestion mitigation. Despite the positive effects of congestion pricing, its implementation has faced problems. This paper investigates the issue of environmental equity in cordon pricing and a park-and-ride scheme. Although pollution decreases inside the cordon by implementation of cordon pricing, air pollutants emission may increase in some links and in the whole network. Therefore, an increase in air emissions in the network means more emission outside the cordon. In fact, due to the implementation of this policy, air pollutants emission may transfer from inside to outside the cordon, creating a type of environmental inequity. To reduce this inequity, a bi-level optimization model with an equity constraint is developed. The proposed solution algorithm based on the second version of the strength Pareto evolutionary algorithm (SPEA2) is applied to the city network in Tehran. The results revealed that it seems reasonable to consider environmental equity as an objective function in cordon pricing. In addition, we can create a sustainable situation for the transportation system by improving environmental inequity with a relatively low reduction in social welfare. Moreover, there are environmental inequity impacts in real networks, which should be considered in the cordon pricing scheme.

Multi-objective cordon price design to control long run adverse traffic effects in large urban areas

Pricing is seen as a viable alternative to manage the demand for transportation facilities. While supply increase might aggravate the problem, pricing is envisaged to relieve large cities from adverse traffic effects (congestion and pollution, among others). Nevertheless, pricing has its own drawbacks, often overlooked by the operators of the networks. It will cause changes in the travel behavior of the different groups and their demands (shoppers, retailers, and even basic businesses/ employees). This paper presents an extensive review of the subject, and an equilibrium model to estimate the long---run effects of a cordon pricing scheme. The problem of designing a price for a Central Business District (CBD) cordon is formulated in this study as a bi-level optimization problem. The lower level problem is a joint trip production-distribution-mode choice-assignment problem, with interactions among three groups of the users (agents). The upper level problem is a multi-objective decision-making problem, where CBD cordon price (as decision variable) forms the alternatives. It monitors four important objectives, namely maximization of consumers' surplus, minimization of air pollution and congestion measures, as well as minimization of the internal migration of the retail employment. The latter is a main cause of the CBD degradation. The demands for shoppers and retailers are elastic, but that of the basic employees is assumed inelastic. Two test problems are examined and solved to show the behavior of the model. The results show that by employing under-pricing, or over-pricing, the cordon would lead to an unfavorable situation in that it would decrease the consumers' surplus, and increase pollution and congestion levels. Moreover, at certain price levels the rate of migration would drastically increase, while it might be relatively insensitive to price in other ranges.

Dual-Based Heuristic for Optimal Cordon Pricing Design

This paper formulates the cordon pricing design problem with elastic demand as a mathematical program with complementarity constraints (MPCC) to simultaneously optimize the cordon locations and cordon-specific toll levels, thus maximizing total social welfare. The formulation is flexible so that various charging requirements, such as those on cordon numbers, cordon size, and cordon types, can be easily satisfied by slightly modifying the formulation. A dual-based heuristic algorithm is proposed to handle the problem by sequentially solving a relaxed cordon pricing design problem and an updating problem. To avoid directly dealing with the complementarity constraints contained in the two problems, the paper adopts alternative approaches by solving a series of subproblems. These subproblems can be easily handled by using available commercial solvers. Numerical tests are performed to generate different cordon designs for one single-layered cordon, multilayered cordons, and multicentered cordons. The results demonstrate that the proposed model and solution algorithm are able to efficiently produce optimal cordon pricing schemes on real-sized transportation networks.

A dynamic cordon pricing scheme combining the Macroscopic Fundamental Diagram and an agent-based traffic model

Pricing is considered an effective management policy to reduce traffic congestion in transportation networks. In this paper we combine a macroscopic model of traffic congestion in urban networks with an agent-based simulator to study congestion pricing schemes. The macroscopic model, which has been tested with real data in previous studies, represents an accurate and robust approach to model the dynamics of congestion. The agent-based simulator can reproduce the complexity of travel behavior in terms of travelers’ choices and heterogeneity. This integrated approach is superior to traditional pricing schemes. On one hand, traffic simulators (including car-following, lane-changing and route choice models) consider travel behavior, i.e. departure time choice, inelastic to the level of congestion. On the other hand, most congestion pricing models utilize supply models insensitive to demand fluctuations and non-stationary conditions. This is not consistent with the physics of traffic and the dynamics of congestion. Furthermore, works that integrate the above features in pricing models are assuming deterministic and homogeneous population characteristics. In this paper, we first demonstrate by case studies in Zurich urban road network, that the output of a agent-based simulator is consistent with the physics of traffic flow dynamics, as defined by a Macroscopic Fundamental Diagram (MFD). We then develop and apply a dynamic cordon-based congestion pricing scheme, in which tolls are controlled by an MFD. And we investigate the effectiveness of the proposed pricing scheme. Results show that by applying such a congestion pricing, (i) the savings of travel time at both aggregated and disaggregated level outweigh the costs of tolling, (ii) the congestion inside the cordon area is eased while no extra congestion is generated in the neighbor area outside the cordon, (iii) tolling has stronger impact on leisure-related activities than on work-related activities, as fewer agents who perform work-related activities changed their time plans. Future work can apply the same methodology to other network-based pricing schemes, such as area-based or distance-traveled-based pricing. Equity issues can be investigated more carefully, if provided with data such as income of agents. Value-of-time-dependent pricing schemes then can also be determined.

Results Not Guaranteed: A Tale of Road Pricing in New York and London

This paper analyzes the elements of road pricing that are effective in managing urban congestion. The general theory of road pricing is discussed and theoretical arguments are presented against arbitrary road pricing. Tolling in New York City, where pricing has been imposed on a piecemeal basis without overall system performance goals in mind, is presented as a case study. The current New York situation is compared with the London cordon pricing scheme, which has been successful in obtaining its objectives. It is concluded that road pricing is economically sensible in generic terms but may be inefficient, or even detrimental, in practice. To reduce congestion, pricing must be specifically designed to do so, taking into account local conditions and institutions. Comparing the New York City and London experiences revealed that urban road pricing must be done on a systematic basis. The quality of transit service is important so that it can be a reasonable alternative to automobile travel. Where there are decentralized institutions, as is the case in many American cities, institution rigidities need to be considered in designing pricing schemes. London's recent growth in congestion has undermined some of the travel improvements created by the congestion charge. This indicates that even well-designed pricing plans need to be able to shift with changing conditions.

Results Not Guaranteed: A Tale of Road Pricing in New York and London

Pricing of roads has been a mantra in transportation economics for many decades now. The basic economic reasoning is sound: optimal consumption of a road is set where price=marginal cost (P=MC) and the lack of a price or the presence of underpricing will lead to economically inefficient levels of congestion. However, the authors here argue that to be effective in managing congestion, imposition of a road price is only a necessary, but not a sufficient condition for obtaining an optimal level of road usage. Pricing regimes in London and New York are compared and contrasted to examine this argument. In London road pricing has been imposed as part of an overall urban congestion management scheme that takes preexisting traffic flows and alternative modes of transport into account. This effort has generally been deemed to be successfulin obtaining its objective of reduced automobile traffic on constrained urban roads. In New York pricing has been imposed on a piecemeal basis, without overall system performance goals in mind. The result there has been high tolls but growing congestion, and now a London-style cordon pricing scheme has been proposed. In general the authors conclude that road pricing is economically sensible in generic terms but that it may often be detrimental, or at least inefficient, in many of its particular manifestations. To reduce congestion, pricing must be specifically designed to do so taking into account local conditions and institutions.

Economic Framework for Melbourne Traffic Planning

elbourne has the size, population density and car ownership levels of many North American cities but the levels of public transport infrastructure seen in European cities. Although possessing aboveaverage public transport infrastructure it still faces problems of dealing with high car use and socially-costly traffic congestion that amount to losses of billions of dollars annually. The costs include wasted travel time, increased stress and fatigue, excessive fuel and maintenance costs, lower worker productivity, increased transport capital requirements, reduced business competitiveness and deterioration of an otherwise aesthetically pleasing environment. Although these costs can be reduced with demand-side policies, roads are the only public utility in Victoria not targeted for efficient pricing. In this paper, economics-based policies are proposed for ameliorating Melbourne’s traffic congestion. A suite of demand-side strategies is suggested including a cordon pricing scheme for the central city, parking policies which address boundary problems on the cordon perimeter and pricing of major arterials and ring-roads. These policies should be accompanied by ‘traffic calming’ measures on smaller urban roads. Auxiliary public transport pricing reforms are advocated promoting competition. Current policies of concentrating urban expansion on city boundaries are criticised. The proposed policy mix is a stop-gap bringing congestion closer to efficient levels thereby facilitating transfer to comprehensive electronic pricing. Comprehensive ‘first-best’ pricing of Melbourne’s roads by satellite monitoring is impractical due to high start-up costs relative to congestion. However, inexpensive demand-side policies can reduce congestion costs. This paper exposits such policies. Section 2 overviews Melbourne’s transport system. Section 3 analyses congestion policies emphasising demand-side tactics and costeffective cordon pricing of the city centre. Supply-side strategies, information policies, indirect demand-side strategies and other policies are discussed. Section 4 outlines a plan to relieve radial and central traffic congestion by curb-side pricing, cordon pricing and ‘traffic calming’. Section 5 explains why direct demand-side strategies are generally unsuited to reduce cross-town congestion. Section 6 offers conclusions and final remarks.

Comparison of judgmental and optimal road pricing cordons

The performance of cordon pricing schemes is critically dependent on the location chosen for the cordon, and the toll imposed. Most cordon designs have been based on professional judgment, in the absence of guidance on the principles of efficient design. In this paper, a methodology based on Genetic Algorithms has been developed to identify the optimal location and toll level for one or more cordons, for a given objective function, with or without constraints on the design or required outcomes. To compare the performance of judgmental and optimal cordon designs, the method has been tested on a network of Edinburgh, with optimisation designed to achieve welfare maximisation with and without constraints on desired level of revenue and equity impact. The methodology is shown to generate appropriate solutions to all of these problems. The optimal single cordon achieves welfare benefits which are double those of the best judgmentally designed cordon. Constrained optima inevitably achieve lower benefits, but it is possible to design them so that this loss is minimised.

Choosing Congestion Pricing Policy

Marginal cost pricing has been long advocated as an efficient way of distributing scarce road resources. In practice, however, policy makers have to retreat to second-best pricing schemes that are associated with lower transaction costs and are simpler for potential users to understand than the first-best marginal cost tolls. To date, the majority of practical applications and theoretical models in Europe and Asia are represented by cordon or area pricing mechanisms, while in North America, variations of link-based tolls have become dominant. This paper compares welfare effects of two second-best cordon pricing schemes with those of second-best link -based tolls for the Washington, D.C., transportation network. START, a strategic and regional transport planning model that features elastic travel demands as well as mode, time period, and route choice, is used to analyze the impacts of the two pricing approaches. Distributional effects of cordon and link-based tolls are also examined in the hope of understa...

Choosing Congestion Pricing Policy

Marginal cost pricing has been long advocated as an efficient way of distributing scarce road resources. In practice, however, policy makers have to retreat to second-best pricing schemes that are associated with lower transaction costs and are simpler for potential users to understand than the first-best marginal cost tolls. To date, the majority of practical applications and theoretical models in Europe and Asia are represented by cordon or area pricing mechanisms, while in North America, variations of link-based tolls have become dominant. This paper compares welfare effects of two second-best cordon pricing schemes with those of second-best link-based tolls for the Washington, D.C., transportation network. START, a strategic and regional transport planning model that features elastic travel demands as well as mode, time period, and route choice, is used to analyze the impacts of the two pricing approaches. Distributional effects of cordon and link-based tolls are also examined in the hope of understanding why one scheme might be preferred over another. Because Washington, D.C., in many respects resembles a European city, cordon policies are more likely to be effective there than in more typical North American cities. Although overall net welfare benefits achieved by the three schemes are found to be similar, their dependence on revenue recycling and distributional impacts are quite different. Although the small cordon puts a higher share of costs on low-income travelers than do other pricing schemes, in absolute terms these costs are lower. The exact distributional impact of a larger cordon is uncertain because it depends on the revenue recycling method employed.

Learning from Road Pricing Experience: Introducing a Second-generation Road Pricing System

The Norwegian cordon pricing schemes represent rare examples of urban-wide road user charging. In Trondheim, the toll ring established in 1991 was developed into a unique zonal system in 1998. This second-generation road pricing scheme divides the city into six zones, and traffic crossing the boundaries is charged. In this article, the processes of developing the two generations of road pricing in Trondheim are described. The public and political acceptance of the two generations of road pricing systems is investigated, and the main arguments for and against the scheme, as manifest in public debate, are assessed.