Key research themes on regulation,pricing, and sustainable urban mobility

ABSTRACT

This article considers both theoretical arguments and practical experience regarding a range of urban pricing and regulation policies, namely road pricing, public transport pricing and regulation, car parking policies, home and low-emissions zones, and regulation and subsidies to bring about cleaner vehicles. It concludes that effective urban transport policies require a consistently structured package of measures, and that the most urgent research needs surround the design of such measures to achieve their objectives while being financially sustainable and attracting public and political support.     

How large is the gap between present and efficient transport prices in Europe?

In this paper, we analyse the gap between present transport prices and efficient transport prices. Efficient transport prices are those prices that maximise economic welfare, including external costs (congestion, air pollution, accidents). The methodology is applied to six urban and interregional case studies using one common optimal pricing model. The case studies cover passenger as well as freight transport and cover all modes. We find that prices need to be raised most for peak urban passenger car transport and to a lesser extent for interregional road transport. Optimal pricing results for public transport are more mixed. We show that current external costs on congested roads are a bad guide for optimal taxes and tolls: the optimal toll that takes into account the reaction of demand is often less than one third of the present marginal external cost.     

Basic economic principles of road pricing: From theory to applications

This paper presents, a non-technical introduction to the economic principles relevant for transport pricing design and analysis. We provide the basic rationale behind pricing of externalities, discuss why simple Pigouvian tax rules that equate charges to marginal external costs are not optimal in ‘second-best’ settings, and discuss the conceptual link between congestion pricing and road capacity. The final part of the paper is devoted to implementation paths for transport pricing policies. A simple numerical model demonstrates how different time patterns of constraints on pricing and capacity policy instruments may lead to different time patterns of efficiency along those implementation paths.     

Modelling the impact of alternative pricing policies on an urban multimodal traffic corridor

This paper investigates the effects of alternative or joint schemes of road pricing and parking pricing to verify if private behaviour in operating parking facilities, road tolling and transit systems can lead to profitable results in the private sector and for public welfare. The evaluation is carried out using an idealised urban multimodal traffic corridor with some numerical examples that show the effects of different pricing policies. A Deterministic User Equilibrium assignment procedure is used to calculate certain performance indicators such as user travel costs, social costs and private profit. The results show that the system is highly sensitive to pricing policy and that a proper joint pricing of park-and-ride facilities, city centre parking and road tolls can be developed to simultaneously attain good private and social benefits.     

Optimisation models for the urban parking pricing problem

Parking pricing strategies are important tools for rebalancing the modal split between private car and transit systems in urban areas. Indeed, high congestion levels are mainly due to users' preference for the private car system. In order to obtain a more balanced modal split it is possible, together with an improvement in transit system quality, to set fees on the use of private cars through road pricing and/or parking pricing strategies. Parking pricing strategies are simpler, since they can be managed without adopting advanced technologies. In this paper some parking pricing strategies are proposed and some optimisation models are formalised.     

Can high quality public transport support reduced car parking requirements for new residential apartments?

This paper explores the extent to which high quality public transport can support reduced car parking requirements for new residential apartment buildings. Using a case study of Melbourne, the demand for car parking at residential apartment buildings in proximity to high frequency public transport is assessed, while controlling for a range of socio-demographic, urban design and demand management variables. Key findings indicate that while lower demand for car parking is associated with proximity to high quality public transport, this association is not significant when controlling for other factors that influence car ownership. Public transport service supply within 800 m of residential apartment buildings was instead found to be significant, rather than simple distance to transit. Modelling results suggest an inelastic relationship whereby a 10% increase in public transport service supply is associated with a 0.9–1.2% reduction in car parking demand as measured by levels of car ownership. Notwithstanding broader criticisms of residential off-street parking minimums, the findings have important implications for the development of residential car parking policies, suggesting that city-wide car parking requirements should appropriately reflect the spatial distribution and quality of public transport services.     

Phased implementation of transport pricing for Greater Oslo

We apply a modelling framework, RETRO, based on the land use and transport models for determination of implementation paths for marginal social cost pricing of passenger transport in Greater Oslo. Marginal social cost pricing strategies are assessed through welfare maximisation with respect to the transport instruments that are available. We have constructed implementation paths unconstrained and constrained with regard to acceptable levels of transport instruments, financial situation and equity. The implementation paths are evaluated relative to a base-case situation with continuation of today's pricing policy. The evaluation includes a discussion of the effects on land use and transport indicators.     

Understanding the parking supply mechanism in China: a case study of Shenzhen

Parking policy in China is characterized by “high regulation in supply and mispricing.” City governments rely on the “minimum parking requirement,” the conventional approach, to manage parking quantity, which shapes a unique phenomenon called the “developer-led supply pattern.” In this paper, we establish ordinary least squares models to explore “spatial-mismatch” characteristics that result from the current parking policy and infer the latent mechanism of parking supply using geographical correlation analysis. In the case of Shenzhen, we found that few urban factors at the district level are involved in the decision making of developers regarding parking provision, which compromises the endeavor of creating sustainable transport and thus requires further policy intervention. Market force serves its role in strict planning regulations at the neighborhood level because of the dominant role of property developers. These models not only confirm the mismatch of parking supply with the objectives of sustainable urban transport but also reveal the willingness of developers as a driving force that interacts with the regulatory environment. Such willingness leads to a spatially inconsistent, inefficient parking supply pattern over the entire Shenzhen metropolis. Based on these findings, two suggestions are made for parking policy on district and neighborhood bases that address the situation of high-density urbanization in Chinese cities and similar circumstances.     

Where to park? A behavioural comparison of bus Park and Ride and city centre car park usage in Bath,UK

Integrating car parking facilities with public transport in Park and Ride (P&R) facilities has the potential to shorten car trips, contributing to more sustainable mobility. There is an ongoing debate about the actual effects of P&R on the transport system at the subregional level. A key issue is the relative attractiveness of city centre car parks (CCCP), P&R and public transport. The paper presents the findings of a comparative empirical case-study based on a field survey of CCCP and P&R users conducted in the city of Bath, UK. Spatial and statistical analyses are applied. Radial distance to parking, availability of P&R sites in the direction of travel, gender, age, income and party-size are found to be important factors in a binary logistic regression model, explaining the revealed-preference of parking type. Stated analysis of foregone parking alternatives suggests more use of public transport and walking/cycling would likely occur without first-best parking alternatives. The policy implications and possible planning alternatives to P&R at the urban fringes for achieving greater sustainability goals are also discussed.     

Influence of varied parking tariffs on parking occupancy levels by trip purpose

The potential impact of parking-pricing on trip generation and modal choice is gaining greater acknowledgement within transport demand management research. However, although the aggregate effect of a transport demand management pricing measure is often noted or estimated, the potential varied impact of pricing measures on specific subsets of the market are often overlooked in the policy process. The variance of price impacts on different trip purposes, initially, and as tariffs increase progressively, is an important consideration for policy makers. Using the results from a survey on 1007 on-street parkers in Dublin, Ireland, this paper shows a progressively widening gap in price sensitivity between trips made for business purposes relative to non-business purposes, as the suggested parking pricing scenarios are increased. The results highlight the complication that the varied price sensitivity of particular market subsets can bring to development of a pricing policy and warns of threshold points where the gap between the price responsiveness of specific market subsets become considerably more pronounced.     

The evidence base for parking policies—a review

Parking policy is one of the key links between transport and land-use policy. Parking policies are often compromised in their effectiveness due to the perceived tension between three of the objectives that parking supports: regeneration, restraint and revenue. In particular the belief that parking restraint measures could damage the attractiveness of city centres to both retail and commercial enterprises limits the political acceptability of pricing policies and planning.This paper presents a review of the evidence base upon which commuter, leisure and shopping and residential parking policies are based. Whilst underdeveloped, the literature suggests that greater attention should be given to analysing and presenting the accessibility impacts that different parking restraint measures have on travelers of all modes. The research base in many instances does not support, or provides evidence counter to, the assumption that parking restraint makes centres less attractive. Further disaggregate work is needed to understand how context specific these findings might be.     

Lessons from travel planning and road user charging for policy-making: through imperfection to implementation

In 1978 Gunn published a seminal paper which explained why implementation of policy is so difficult. The paper set out 10 conditions, which should be satisfied if perfect implementation is to be achieved. Whilst it is clear that perfect implementation is not possible in the real world, and Gunn has subsequently been criticised for his ‘top-down’ approach to decision-making, these conditions do, nonetheless act as an effective framework through which to evaluate good practice in the implementation of urban transport policy instruments. Two urban transport policy instruments, which form an increasingly important element of the Government's strategy in the UK for reducing the demand for private transport as set out in a New Deal for Transport (DETR, 1998), are travel plans and road user charging. Travel plans are a relatively recent policy instrument in the UK and seek to reduce trips to work by car by providing, through individual employers, a targeted, integrated package of incentives and disincentives to influence commuters' choice of mode of travel to and from the workplace. Road user charging, whereby motorists are charged for the road space they use in urban areas, seeks to reduce the congestion problem via the price mechanism, and has a longer history in the UK. To date the implementation of travel plans in the UK has been more widespread than that of road user charging. It is fair to say, however, that the widespread implementation of both urban transport policy instruments is a complex and sensitive area for decision-makers.The aim of this paper is firstly, to analyse travel plans and road user charging in the UK with respect to the conditions for perfect implementation put forward by Gunn and secondly, to highlight the elements of good practice, pertinent to the implementation of road user charging, in the process of the implementation of travel plans. Overall, the paper uses Gunn's theoretical framework as a basis for recommendations for better decision-making that will aid the wider implementation of both travel plans and road user charging internationally.     

Designing optimal urban transport strategies: The role of individual policy instruments and the impact of financial constraints

This paper presents a methodology for the design of optimal transport strategies and the case study results of the methodology for the City of Edinburgh, using the two multi-modal transport/land-use models MARS and TPM. First, a range of policy instruments are optimised in turn and their relative impacts explored. Second, optimisations with and without financial constraints are performed and compared. Although both models produce similar optimal policies, the relative contribution of the instruments differs between models as does the impact on outcome indicators. It is also shown that by careful design it is possible to identify a strategy which costs no more than the do-minimum but which can generate substantial additional benefits. The optimisation methodology is found to be robust, and is able to be used with different transport models, and with and without financial constraints.     

Attitudes to traffic-related issues in urban areas of the UK and the role of workplace parking charges

In the UK the Government currently perceives a levy on workplace parking to be a key ingredient of a package of measures designed to deal with congestion and traffic-related pollution in urban areas. Clearly a number of issues will require careful consideration before such a levy can be successfully introduced. This paper presents a summary of the findings of a national survey undertaken with respect to workplace parking charges. How seriously do the decision-makers and opinion formers perceive traffic-related issues (and in particular the health effects of road traffic) to be in the urban areas of the UK? and, how effective and acceptable is a levy on workplace parking likely to be when compared with other policy options as a means of dealing with traffic-related pollution? Ring fencing the revenue raised from workplace parking charge would appear to be an important issue, alongside the allocation of that revenue as a means of increasing acceptance. The paper considers the size of the levy to be charged in order to achieve a significant reduction in current workplace parking provision, and the case for exempting certain categories of user.     

Willingness to spend and road pricing rates

Using a theoretical model of urban transport system the paper examines the influence of distribution of willingness to spend within the urban population on road pricing rates. It shows that the rates that must be imposed in an urban area in order to maintain pollutant concentration and congestion due to traffic within acceptable levels is heavily dependent on the distribution of the urban population’s willingness to spend. This fact severely limits the reliability of any method for calculating road pricing rates based on theoretical analysis, so that an experimental approach seems necessary. The paper shows that a relation exists between the toll rate per kilometer of trip and the average traffic congestion, which is typical of each urban area and can be determined experimentally by successively imposing three different rates and measuring the corresponding congestion levels. The relation can then be used to determine the pricing scheme when the purpose of road pricing is to maintain both the congestion and the environmental effects due to urban traffic below acceptable thresholds. An example shows how the model can help policymakers in decision-making processes.     

铁路货运价格策略研究

运价是客户选择运输方式的重要因素。铁路货物运价存在着运价政策、运价管理机制与市场脱节等问题。应用铁路货运价格理论,借鉴美国铁路运价策略,提出我国铁路货运价格应实施以国家统一运价为基础,运输企业根据市场供求关系,掌握一定的运价浮动权,并实行多种形式的运输价格等策略。     

Local authority and academic attitudes to urban road pricing: a UK perspective

Urban road pricing as an instrument of traffic management has generated a great deal of interest in the UK in recent years. Whilst this is the case there is still no urban road pricing scheme in operation in the UK. The reason for this is primarily one of ‘acceptability.’ This paper, through the use of a national survey, examines the attitudes of key stakeholder groups with respect to urban road pricing. How serious is traffic congestion and traffic related pollution perceived to be by Local Authority Councillors, Officials and the Academic community in the UK? How is urban road pricing viewed by this sub-group of the population in terms of its effectiveness and public acceptance when compared to other policy options? and how could the saleability of urban road pricing be improved? This raises issues in terms of how the revenue raised from urban road pricing should be utilised, the use of urban road pricing as part of a package of measures, the concerns expressed by the stakeholders with respect to urban road pricing, such as the invasion of road users’ privacy, and the type of technology which should be considered. Overall, the paper aims to further the debate among policy makers.     

Dense,mixed-use,walkable urban precinct to support sustainable transport or vice versa? A model for consideration from Perth,Western Australia

ABSTRACT

Within the majority of the literature on sustainable transport, it is accepted as ideal to arrange new urban growth in close proximity to major public transit services. While the literature on this subject of transit-oriented developments (TOD) is positive and optimistic, for the most part such assertions are conjectural. This article will attempt to fill this gap by revealing a modeling process undertaken for a local area's reurbanization project to understand the potential and limitations of several modes of transport to support the increased activity density in the precincts. Several of the most standardized policy levers were employed, such as parking ratios and mix of use and building height, and contrasted with the trip generation and transit mode's hourly capacity to reveal potential real-estate yields. The outcomes indicate not only the immediate yields but also the capacity for urban transformation due to each level of sustainable transport investments. The model is unique in that the capacity, parking ratios, and assumptions are highly transparent.     

Spatial competition between parking garages and downtown parking policy

This paper looks at optimal parking policy in dense urban districts (“downtown”), where spatial competition between parking garages is a key feature, from the perspective of economic theory. The paper has four parts. The first looks at the “parking garage operator's problem”. The second derives equilibrium in the parking garage market when there is no on-street parking, compares the equilibrium to the social optimum, and examines optimal parking policy in this context. Since parking garage operators have market power, the spatial competition equilibrium is generally inefficient, and parking policy can be used to mitigate the distortion. The third adds on-street parking and considers how its underpricing affects second-best parking policy. The fourth adds mass transit, and considers how economies of scale in mass transit interact with minimum and maximum off-street parking standards.Preliminary draft: Please do not cite or quote without the permission of the author.     

Overcoming barriers to the implementation of car parking charges at UK workplaces

Charging employees to park at their places of work is a transport policy measure advocated by the UK government as a means of reducing car commuting and hence achieving the twin objectives of reducing congestion and combating environmental degradation, especially in urban areas. The empirical effects of employee parking charges have been analysed (see for example [Willson, R.W., Shoup, D.C., 1990. Parking subsidies and travel choices: assessing the evidence. Transportation 17, 141–157; Department for Transport (DfT), 2002. Making travel plans work: report on case studies. London: DfT (Also available at www.local-transport.dft.gov.uk/travelplans/guides/index.htm)]). There is, however, a dearth of literature examining the practicalities of employee car parking charge implementation in those few organisations that haves done so. Based on empirical studies of 11 UK workplaces, this paper examines the reasons for and the practicalities of implementation and concludes by considering the barriers to the wider adoption of this policy.