Cordon Pricing Research Articles

COMPARISON AND OPTIMIZATION OF CORDON AND AREA PRICINGS FOR MANAGING TRAVEL DEMAND

This paper analyses both the cordon and area pricings from the perspective of travel demand management. Sensitivity analysis of various performance measures with respect to the toll rate and demand elastic parameter is performed on a virtual grid network. The analysis shows that cordon pricing mainly affects those trips with origins outside of the Central Business District and destinations inside, while area pricing imposes additional cost on the trips with either origins or destinations in the Central Business District. Though both pricing strategies are able to alleviate traffic congestion in the charging area, area pricing seems more effective, however, area pricing owns the risk to detour too much traffic and thus cause severe congestion to the network outside of the Central Business District. Following the sensitivity analysis, a unified framework is proposed to optimize the designs of the both pricing strategies, which is flexible to account for various practical concerns. The optimization models are formulated as mixed-integer nonlinear programs with complementarity constraints, and the solution procedure is composed of solving a series of nonlinear programs and mixed-integer linear programs. Results from the numerical examples are in line with the findings in the sensitivity analysis. Under the specific network settings, cordon pricing achieves the best system performance when the toll rate reaches the maximum allowed, while area pricing finds the optimal design scheme when the toll rate equals half of the maximum allowed.

The Latent Factors Behind the Urban Travel Behaviour

This research aims to explore the impact of latent variables, mirroring the users’ preferences, on the individual decision making process regarding the mode of transport. The paper describes the first results of an ongoing research activity, which derives from a pilot study carried out in Palermo.The authors have administered to a sample of travellers a questionnaire and they simulated the mode choice behaviour referring to the random utility theory. Then the transport demand over the entire area of Palermo has been studied in order to design the cordon pricing scenario with the application of an additional cost on private car dedicated to a selected area of the historic centre of Palermo. The results support the assumption that the design of a competitive public transport supply, using a road pricing policy, should pass through the complete understanding of the relationship between mode choice and latent constructs.

Investigation of Cordon Pricing in Budakeszi

This paper is about a theoretical investigation of a Congestion pricing system in the municipality of Budakeszi. Due to its special geographical background the city is heavily affected by congestion problems, produced by the high number of commuters passing through. This paper illustrates the usage of transport planning models as the Four Step Model to picture this situation and how this model can be used in the simulation of a theoretical congestion pricing system.Finally the utilities of different systems are investigated for the Budakeszi area.

Optimal Cordon Pricing and Road Investment Under Optimal Building Size Regulation

This paper explores the simultaneous imposition of cordon pricing and population density regulations in a closed monocentric city with traffic congestion. It explores also how to optimize road investment at all locations. We show the optimal level of pricing, the optimal location of the cordon line and the optimal width of road at all locations in a city. Results show that 1) optimal toll can be represented by the difference in the marginal deadweight loss per household in the floor area market across the cordon line, 2) optimal cordon location should be determined so that the rent difference across the cordon line is balanced with the difference of the deadweight loss in the floor area market across the cordon line, 3) in both the inside zone and the outside zone of the cordon line, minimum (resp. maximum) FAR regulation are required at locations close to the CBD side (resp. the urban boundary side), and 4) how the benefit of widening a road inside and outside the cordon line can be measured.

Achieving genuinely dynamic road user charging: issues with a GNSS-based approach

A variety of approaches to road user charging (RUC) for reducing congestion and raising revenue to maintain and improve transport infrastructure is in place in many countries; examples of such RUC include: an Electronic Fee Collection System in Singapore, Cordon Pricing in Oslo City in Norway, Zoned Based Pricing in London and Distance-Based Pricing (also called Pay-As-You-Drive) in Germany and Switzerland. With the development of satellite technologies, the introduction of dynamic pricing becomes possible, affording an opportunity for RUC to fully reflect the ‘Polluter Pays Principle’. This paper provides critical and comparative assessments of existing road user charging (RUC) systems with reference to technological limitations and public and political acceptability. The paper then goes on to demonstrate a system architecture for a Global Navigation Satellite System (GNSS) based dynamic road user charging system capable of considering dynamic variables. Finally we consider the feasibility of the proposed system in relation to technology readiness and public acceptability. We then consider some potential wider benefits from the introduction of a comprehensive system that could be highlighted to justify the cost of development and implementation as well as to improve public and political acceptability. The paper ends with conclusions and future research directions.

Coping with congestion: Understanding the role of simultaneous transportation demand management policies on commuters

This paper examines the role of transportation demand management (TDM) policies on commuters’ mode choice in the city of Tehran. The analysis is based on the results of a stated preferences survey developed through the design of experiments approach. Five policies covering increasing parking cost, increasing fuel cost, cordon pricing, transit time reduction, and transit access improvement are assessed in order to study their impact on commuters’ consideration of six modes of transportation to travel to work. A multinomial logit model was developed for the 366 commuters who regularly commute to their workplace in the center of the city. In addition to a number of commuting and contextual variables, the model shows that the single policies main effect and multiple policies interactions are significant in affecting commuters’ mode choice. The marginal effects of policies are presented, and simultaneous effects of the policies on car usage variations are provided.

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.

Evaluation of demand for different trip purposes under various congestion pricing scenarios

Cordon pricing is an effective policy to alleviate congestion and manage travel demand in city centres. However, different responses among road users to certain policies are inevitable. This paper presents a study evaluating the possible consequences of cordon and parking pricing on road users with different trip purposes, i.e., workers and non-workers. Different models have been developed and calibrated with data from the central business district of Mashhad, Iran, using revealed and stated preference methods. The analysis of the interviewee responses to the hypothetical situations shows that workers comprise the dominant proportion using each mode of travel to the Mashhad CBD. The commuters were provided with alternative choices, and their preferences were examined using multinomial logit. The results show that the cost-based policy such as parking and cordon pricing is good to reduce congestion as it affects workers, but the impact is more evident for non-workers travelling to the CBD. Furthermore, the model suggests that workers are more likely to shift mode in response to changes in travel time. The model was also developed to obtain different willingness-to-pay measures, which indicate that workers have a greater willingness to pay for parking and cordon pricing than non-workers.

Modelling demand under parking and cordon pricing policy

The purpose of this study was to explore travellers’ responsiveness to congestion pricing (cordon pricing) and parking attributes (especially parking pricing) in deciding whether to drive and park in the central business district (CBD). Employing the stated-preference method, data were collected by personal interviews in Mashhad City CBD. The respondents were requested to report their current trip to the CBD by answering a set of questions and scenarios to consider five alternatives, including two parking locations in the CBD: park inside the cordon-pricing zone or outside and access the cordon area by walking or public transport, shift to public transport (taxi and bus), or cancelling of their trip to the CBD. The two parking locations were categorised by cordon and parking tariff schedule, search and queue time for a parking space, and access time from the parking space to the final destination. The preferences regarding mode of transportation and parking choices were determined using a multinomial logit model, which was used to estimate elasticity values and the willingness-to-pay among attributes. The results indicate that drivers are highly sensitive to cordon charge (−1.145), significantly more than to parking cost, search and egress times in switching mode and parking choice. Furthermore, respondents’ reactions suggest that drivers’ willingness to pay for parking fees is higher than their tendency to pay for cordon tolls.

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.

Exploring the role of transportation demand management policies’ interactions

The integration of Transportation Demand Management (TDM) policies is a challenging issue in urban policy studies. Interactions between policies that are not addressed broadly in the integration context play a main role in the outcome of TDM policy packages. However, different individual daily trip purposes, city development, variations in land use and different levels of decision making about transportation often lead to the implementation of more than one TDM policy at a time. This study examined the role of TDM policy interactions on the macro and micro levels. On the macro level, this study showed that the introduction of two-way interactions in the model could improve the goodness of fit by 15%. On the micro level, we developed the concept of synergy for all levels of two policies. The results show that generally synergy is a function of policies’ levels, and the integration of increasing parking cost with either cordon pricing or increasing fuel cost has greater synergy at higher levels of the two policies. In contrast, the integration of other two policies (i.e. cordon pricing and increasing fuel cost) had no synergy in the examined ranges.

Cordon pricing in the monocentric city: theory and application to Paris region

Résumé Nous proposons un algorithme de résolution du modèle monocentrique de transport avec congestion et nous utilisons cet algorithme afin d’explorer l’impact du péage routier dans les zones urbaines. Plus particulièrement, on considère la région Île-de-France et on cherche à comparer le péage de cordon simple avec le péage de cordon double. Le cas de référence étant celui où il n’y a pas de péage (situation actuelle). On trouve que le cordon double permet d’atteindre un niveau d’efficience de 73 % (par rapport à l’optimum de premier rang) et donc une amélioration de près de 10 % par rapport au cordon simple. Les deux schémas contribuent à réduire les véhicules-kilomètres et donc les émissions de CO 2 . Nous discutons aussi la question de l’acceptabilité du péage où l’on montre une opposition relativement plus faible pour le cordon double. Classification JEL : R21, R41, R48.

Impacts of time-varying cordon pricing: Validation and application of mesoscopic model for Stockholm

This paper uses a simulation model to compare traffic and welfare effects of changes to the charging schedule currently in use in Stockholm. In particular, a step toll is compared to its flat counterpart at two charging levels. The increments between steps are also increased in a peaked step toll scenario. Furthermore, results from simulation of the current toll ring are compared to real-world measurements in a first attempt to validate model predictions regarding impacts of a time-varying congestion charging scheme. In the model, car users have the possibility to respond to congestion charging by changing departure time, route or switch to public transport and travel times are calculated using mesoscopic traffic simulation. Validation shows that departure time choice adjustments because of congestion charging are overestimated by the model that is based on stated preference data. This warrants further research on discrepancies between stated and revealed adjustments to congestion charging.The current step toll reaches the highest social benefit estimate in model predictions, but differences in traffic effects between the current step toll and its flat counterpart are rather small. Furthermore, results show that demand changes occur in the model to a considerably greater extent for trips with low value of time. The differences in welfare effects is for that reason large for different trip purposes, indicating the importance of accounting for heterogeneous trips when modelling effects of congestion charges.

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.

Targeting Urban Congestion: Equity and Second‐Best Issues

Abstract Distributional and second‐best problems of implementing efficiency based demand management of road use in Australian cities are addressed. Both road use pricing and parking policies are considered. Failure to price roads and parking spots efficiently contributes to excessive travel and to excessive urban expansion. A key policy concern is to promote demand management acceptability by offering transportation alternatives and by making explicit the sources of efficiency gain from revenue neutral road charging policies with double‐dividend advantages. Second‐best policies of restricting land releases on city boundaries to encourage more compact city development may be inferior to policies of pricing major roads, cordon pricing and demand based parking policies.

Implementation of cordon pricing on urban network with practical approach

AbstractThe road pricing is regarded as a transport policy to realize the efficient use of urban network. The network analysis with variable demand has been often applied to describe the network level of congestion pricing on the urban network. In the study, the cordon pricing system is analyzed to implement in the urban area with practical approach. It is assumed that the congestion tolls are collected in crossing the cordon lines on the network. Therefore, the scale of cordon zones and the values of congestion tolls would be determined simultaneously to produce the maximum social net benefit. The combinatorial optimization with unit price is formulated. The genetic algorithm (GA) is applied as a practical method to provide the solutions for the combinatorial optimization problem. As the pattern of cordon pricing is determined, the performance of system is estimated to confirm the applicability. It is concluded that the cordon pricing can be applied with the practical approach.

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.

CONGESTION CHARGING MECHANISMS FOR ROADS, PART I—CONCEPTUAL FRAMEWORK

Parts I and II together investigates the implementation aspects of road pricing by setting down criteria for a ‘good’ road pricing system. Besides analyzing the gamut of indirect and direct methods of charging for road usage, the paper surveys alternative congestion pricing technologies including: 1) cordon pricing using manual tollbooths, 2) supplementary licensing, 3) off-vehicle recording systems such as automatic vehicle identification, commonly known as AVI, and 4) on-vehicle charging systems such as smart card technology. Each of these instruments is dealt with by a relatively in-depth case study analysis based on the benefits, costs and revenues of implementing and utilizing each charging mechanism. Since benefit figures are not always readily available, the cost per transaction of operating a system over the long run is used as an index of the relative cost-effectiveness of each technology. Based on alternative quantitative and qualitative criteria, the implications of using each of these technologies for tackling congestion are summarized in a key table and conditional policy recommendations are made.

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.