Solving airside airport congestion: Why peak runway pricing is not working

The paper examines why peak runway pricing has never been effectively implemented. Some of the literature discussing the theory is examined to show the basis for the theory and the potential for flaws in practice. Three cases where airports attempted to implement peak runway pricing are analyzed. The findings indicate that there may be some institutional barriers to peak pricing theory that prevent effective implementation. Airports and others seeking to reduce congestion might consider focusing their efforts on working towards providing alternatives for passengers, rather than attempting to use peak pricing as a congestion-reduction mechanism in isolation.     

How exposure to policy tools transforms the mechanisms behind public acceptability and acceptance—The case of the Gothenburg congestion tax

An increasing body of literature suggests that acceptance of environmental policy instruments tends to change along with increased experience of the same. Among the more popular examples of this is the growing number of congestion pricing initiatives emerging around the world. In several cases, the acceptability of these projects among the public has been relatively low before implementation, but then acceptance has increased as experience of the project has grown. The question is just how, and in particular, why? That is, what is it really that experience does to people's propensity to accept initially quite unpopular measures? In this article, we analyze how the relationship between political trust, policy-specific beliefs (PSBs), and public support for policy tools is moderated or affected by people's personal experiences of those policy tools. On the basis of the experience of previous research, we test the way in which PSBs, institutional trust, and the legitimacy of the political decision-making process affect public attitudes toward a policy tool. In addition—and consistent with other studies—we expect these effects to be significantly reduced post-implementation, as people gain first-hand experience of a policy tool. More specifically, we theorize that the often emphasized process legitimacy is only valid as a factor driving support before implementation, and that the effect of general institutional trust is replaced by the level of trust specific to the implementing institutions after the introduction of the policy tool. We tested these hypotheses using a natural experiment; that is, by studying public attitudes toward the introduction of congestion fees in the Swedish city of Gothenburg both before and after their introduction. By doing so, we were able to comprehensively analyze both the drivers behind public sentiments toward congestion charges and how these mechanisms transform as people are exposed to the costs and benefits of the policy tool in practice. Among other things, we found that with regard to fairness and environmental effectiveness, there is a clear symmetry in our results. The level of acceptance increased most noticeably among those who experienced that the environment was improved by the implemented tax, or that the system turned out to be fairer than expected. However, the opposite is also the case. Thus, among those experiencing that the environment was not improved, or that the system appeared to be less fair than expected, the level of acceptance decreased significantly after implementation. These results may have important policy implications.     

The multi-class, multi-criterion traffic equilibrium and the efficiency of congestion pricing

We consider the effect of the so-called second-best tolls on the price of anarchy of the traffic equilibrium problem where there are multiple classes of users with a discrete set of values of time. We derive several bounds of the price of anarchy for this problem when the tolls are considered and not considered as part of the system cost, with the time-based criterion and the cost-based criterion, respectively. All the bounds give us useful information on the effect of the tolls, which can be used to design network toll schemes.     

Cruising for parking

Suppose curb parking is free but all the spaces are occupied, and off-street parking is expensive but immediately available. In this case, you can cruise to find a curb space being vacated by a departing motorist, or pay for off-street parking right away. This paper presents a model of how drivers choose whether to cruise or to pay, and it predicts several results: you are more likely to cruise if curb parking is cheap, off-street parking is expensive, fuel is cheap, you want to park for a long time, you are alone in the car, and you place a low value on saving time. The model also predicts that charging the market price for curb parking—at least equal to the price of adjacent off-street parking—will eliminate cruising. Because the government sets curb parking prices, planners and elected officials strongly influence drivers’ decisions to cruise. The failure to charge market rates for curb parking congests traffic, pollutes the air, wastes fuel, and causes accidents. Between 1927 and 2001, studies of cruising in congested downtowns have found that it took between 3.5 and 14 min to find a curb space, and that between 8 and 74 percent of the traffic was cruising for parking.     

Transport metabolism, social diversity and equity: The case of São Paulo, Brazil

The movement of people in space implies the consumption of resources such as time, space, money and energy, as well as the production of negative externalities such as accidents, pollution and congestion. Some of these effects have been analyzed on an aggregate level by comparing regions in the world, a set of selected cities and different geographical areas in a particular city. The analysis of data on a more disaggregate level that considers the differences in the cause and continuance of negative transport externalities among social classes and groups living in a particular city in the developing world is rare.This paper uses the São Paulo Metropolitan Region (SPMR) 1997 origin–destination (OD) survey to investigate such phenomenon by taking advantage of the fact that data are divided according to six levels of household income. Results refer to mobility patterns in workable days.The main conclusions are that although people at the lowest income level spend a high share of their income on transport, they have a very low overall mobility and contribute almost nothing to transport externalities. At the other extreme, the two highest income groups that use cars intensively invest much more time, space and money to travel around and so contribute to transport externalities 8.4–15.2 times more than the lowest income group. Such large differences challenge current transport policies in developing countries and call both for a reassessment of assumptions and principles as well as for opposition to the propagation of myths that have sustained such inequitable policies.     

The spatial context of transport disadvantage, social exclusion and well-being

Equity has been a major concern of public transport provision and is required by legislation in many countries. Several approaches measure equity in transit supply however none produce a simple system-wide measure of equity performance. A new approach is presented using Lorenz curves to measure the relative supply of transit to the population. Gini coefficients provide a single measure of overall equity using this method. A system-wide assessment of overall transit supply to the population in Melbourne, Australia shows that 70% of the population shares only 19% of the supply (Gini coefficient = .68). When employment is also taken into account, the situation is not much different; 70% of jobs and population share 23% of service (G = .62). In order to gain some understanding of vertical equity, the transit supply was compared between different age, income and vehicle ownership groups. There is some evidence of higher supply for youth and low-income groups in inner Melbourne, and in all parts of Melbourne no-vehicle households lived in areas of higher transit supply. Overall it is unclear how “fair” these distributions are compared to equity in other cities since this is the first time this method has been undertaken. Projects using similar approaches should provide a good basis for establishing comparative equity between cities.     

Concentrated ownership and corporate performance revisited: The case of shipping

This paper addresses the issue of ownership structure and corporate performance. It employs a sample of 107 internationally listed shipping firms (about 60% of the total) and examines their financial data and ownership concentration for the year 2009. Ownership is treated as an endogenous variable and GMM estimation is used incorporating the significant advance provided by Lewbel (1997). Empirical results suggest that concentrated ownership is positively and strongly associated with better firm performance in the shipping industry. Furthermore, this paper offers evidence on ownership concentration and shows that despite the different corporate governance settings, ownership structures are quite similar in shipping.     

Do firms flee traffic congestion?

Much transport policy aims to use congestion relief measures to support economic activity, but planners know relatively little about how individual firms respond to traffic congestion. This study helps fill this gap by exploring individual firm location responses to traffic congestion within the Philadelphia metropolitan area between 2003 and 2007. This study tests whether existing, basic-industry firms flee congested areas to minimize exposure to the congestion externality. Relocation responses are estimated and compared for five separate industries (finance and insurance, health care, manufacturing, real estate and leasing, and wholesale trade) using firm-level data collected by InfoUSA and obtained from ESRI. Results suggest that congestion influences firm location decisions, but that the scale of congestion is important. While firms appear to relocate out of areas with high regionally-scaled congestion, areas with high local congestion are associated with a lower likelihood of relocating. In sum, while regional congestion appears to be a drag, local congestion appears to function as an amenity – implying that there is truth in the competing notions among engineers and economists of congestion as a diseconomy and among urban designers of congestion as an amenity.