Estimating congestion toll by using traffic count data — Singapore's area licensing scheme

There are many studies on the Area Licensing Scheme in Singapore. One of the debatable issues is whether or not the congestion toll of $3 is too high. The main objective of this paper is to develop a simple method for estimating the congestion toll by directly using the commonly available traffic count data. In our sensitivity analysis, we use three different scenarios on the choice of the value of travel time savings and four different measures of average wage rates (the national average wage rate the average wage rate for car owners with or without taking into consideration of employment benefits, and the average wage rate per car derived from the average occupancy per car). The sensitivity analyses led to a general conclusion that by 1990, the $3 fee was not too high. We also highlight the fact that it is possible to iterate to the optimal congestion toll by comparing the theoretical congestion toll with the actual toll even when the demand curve is unknown. ©     

Norway's urban toll rings: Evolving towards congestion charging?

The role of various types of road user tolls has been an important part of Norwegian transport development for a number of years. There are now around 50 such projects in operation around the country. This paper examines the urban toll ring projects and presents results from new research into the schemes in Norway's three largest cities: Oslo, Bergen and Trondheim. The research indicates that key decisions are being debated as to whether the schemes will continue as toll rings, be stopped completely or transformed into more of a demand management style policy. Interviews with road and local authorities have shown that the feelings are mixed and that the decision will depend on various transport, social, organisational and political factors.This paper reviews the cases of Bergen, Oslo and Trondheim and documents the latest developments in each scheme. The theory behind the application of the toll rings is explored through the case studies. Despite all the projects being implemented by similar networks, each scheme developed its own individual characteristics. These are laid alongside the economic and transport benefits with which they have been associated. The Strategic Policy Niche Management framework is used to analyse various aspects of the toll projects and identify key lessons. The effect these might have on future UK projects is also discussed.     

Modelling and evaluation of road pricing in Paris

This article describes the impacts of road pricing in Ile-de-France, a region that includes Paris. The morning peak is studied using METROPOLIS: a dynamic network simulator that treats endogenously travellers' mode, departure time and route-choice decisions. Time-independent tolls on selected links, time-varying cordon tolls, and a network-wide toll proportional to travel time are considered. Welfare gains from the link and cordon tolls are relatively small. The comprehensive travel-time-based toll yields much higher benefits. In all cases, benefits to users amount to a large fraction of toll revenues and exceed the monetised value of reductions in noise, accidents and vehicle emissions.     

Urban transport pricing reform with two levels of government: A case study of Brussels

This paper analyses two challenges in the reform of urban transport pricing. First the construction of an optimal package of urban transport pricing instruments assuming one benevolent welfare maximizer. It is found that parking and tolling are the most important elements of the optimal package and that these policy instruments are sub-additive in their benefits. The second problem is the use of pricing instruments by different government levels: the urban government controls parking fees and the regional government controls a cordon toll. It is found that the overall efficiency losses in the Nash and Stackelberg equilibria are limited.     

Economic impact of the introduction of the German HGV toll system

After a long period of political debate and technological difficulties, the German heavy goods vehicle (HGV) toll system was finally put into operation in January 2005. This paper is divided into two main parts. The first section discusses the German HGV toll in detail, with a focus on fee calculation. This is followed by an analysis of the macro-economic impact of the toll. Based on an input–output model for the German economy involving 70 distinct industries, undesirable potential price increases are considered along with potential positive employment effects which can be expected if the toll revenue re-enters the economy.     

Demand forecast,congestion charge and economic benefit of an automated highway network for the paris agglomeration

This article is based on the main results of a pre-doctoral dissertation (DEA) on transport done at the ENPC. The research is about an economic evaluation of an automated highway network in the Paris urban agglomeration in the Ile de France Region.To this end, an automatic highway network incorporated into the road network in Ile de France has been modelled by means of the AEL-Davis software. Moreover, a congestion charging system has been introduced in the modelling. The targeted date of this study is 2020 so projections of a demand for alternative car commuting were made for that period. In addition the phenomena of total generation were taken into account in the evaluation. In fact the stages of total generation distribution and assignment have been recalculated to cater for generated traffic.As a result, a marked improvement in the relation between supply and demand has emerged. Moreover, a slowdown in urban sprawl and an increase in the density of activities in smaller and greater suburban areas have been noted. The economic benefits of such an undertaking would approach 73,000 h saved per evening rush hour.The automatic highway network would lengthen commuting distances by 3.5% while reducing commuting time by 2.6%. Thanks to the highway alone covering 2% of the entire infrastructure it would comprise 4.3% of total commuting distance in only 1% of commuting time. It would moreover increase the average commuting speed by 6.3%.     

Demand and operating cost forecasting accuracy for toll road projects

Inaccurate forecasts represent a major source of risk in road and toll projects because they could result in financial difficulties or even bankruptcy. This paper focuses on demand and operating cost forecasting accuracy for Norwegian toll projects by comparing the forecasted and actual levels of traffic and operating costs. The differences among the types of projects and the effects of project size, time and demand ramp-up are also examined. Our study finds that traffic forecasts for Norwegian toll projects are fairly accurate, on average. However, a majority of the investigated projects experienced overestimation, and a huge general error in the forecasts suggests that this is also a source of risk that merits greater scrutiny. Inaccuracies are common among all project types and sizes. Operating costs are frequently underestimated; on average, these costs are about 30% higher than estimated.     

Land-use and socio-economics as determinants of traffic emissions and individual exposure to air pollution

This paper presents a modeling framework developed for the City of Montreal, Canada, and is intended to quantify two indicators that can explain the spatial distribution of traffic-related air pollution at a metropolitan level. The indicators are estimated at the level of the traffic analysis zone (TAZ) and include: (1) the average level of emissions generated per individual and (2) the level of emissions occurring in a zone as a proxy for air pollution exposure. A regional traffic assignment model is extended with capabilities for emission modeling at an individual trip level while taking into account vehicle (type and age) and trip attributes (road type, speed, and volume). We observe that individuals who generate higher emissions from travel tend to reside in areas with lower exposure to traffic emissions while individuals associated with low levels of travel emissions (e.g. travel smaller distances, conduct less trips, and use alternative modes) reside in areas with high levels of traffic pollution. A regression analysis of the two indicators against a set of land-use and socio-economic variables shows that generated emissions per individual are positively associated with car ownership and larger vehicles, while being negatively associated with ownership of newer vehicles, and location in dense and walkable neighborhoods with high levels of commercial land-use. Meanwhile, exposure to emissions is positively associated with dense and walkable neighborhoods and negatively associated with car ownership and larger vehicles. These findings indicate major inequities in the generation of and exposure to traffic-related air pollution.     

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.     

Capacity and toll choice of an add-on toll road under various ownership regimes

This paper considers the problem of how to select the toll and capacity levels of a new toll road added onto an existing network with a single link. The existing network has various ownership regimes: free, public or private owned toll road. The effects of the ownership regime of the existing network on the capacity and toll selections of the add-on toll road, the efficiency of the whole network in the sense of total social benefit, and the investment incentives of the government to develop the new road are investigated when the traffic demand is elastic or inelastic.     

Capacity and toll choice of an add-on toll road under various ownership regimes

This paper considers the problem of how to select the toll and capacity levels of a new toll road added onto an existing network with a single link. The existing network has various ownership regimes: free, public or private owned toll road. The effects of the ownership regime of the existing network on the capacity and toll selections of the add-on toll road, the efficiency of the whole network in the sense of total social benefit, and the investment incentives of the government to develop the new road are investigated when the traffic demand is elastic or inelastic.     

Flat versus spatially variable tolling: A case study in Fresno,California

A number of studies have examined the feasibility of temporal variations in tolls. However, spatial variation in tolls has not received much attention, especially in practice. Spatial variation could effectively reduce congestion and increase profits. To fill this gap, we conduct an empirical application on 3 different road segments using the Fresno, California's transportation planning model. Our modeling results in a number of interesting insights. First, the derived optimal flat toll values are very close to the average variable tolls, but the effects of applying spatially variable tolls on improving total revenues (from 4% to 24%) and total improved travel time (from 18% to 1083%) measures are significant. Second, spatially variable tolls are more effective, but more costly, particularly for arterials, which can be attributed to the higher number of access points for arterials. Third, spatial variations in tolls are more effective for peak hours than for off-peak hours and for social optimization than for profit maximization. Fourth, to improve throughputs for both profit maximization and social optimization, the prevalent tolling pattern along a corridor induces lower final volumes per capacity (V/Cs) (after pricing) at the mainline flow sections and relatively higher final V/Cs at the entrance and exit (boundary) points. Finally, optimal toll patterns are not dependent on vehicle miles traveled (VMTs) or volumes but, rather, are related to targeted V/Cs. Therefore, flow-dependent charges along a corridor should be based on V/Cs rather than on volumes or VMTs.     

Bergen light rail – Effects on travel behaviour

Bergen is the second most populous city in Norway (280,000 inhabitants) and is situated along the west coast of the country. In 2010, the city reintroduced tram service with the opening of a new light rail line, after a gap of 45 years. This study documents the increase in public transit use in Bergen, both in terms of volume and market share, since the line was opened. Furthermore, it explores the effects of light rail transit on travel behaviour using Bergen as a case city. These goals are accomplished by combining and analysing data from different sources, including five travel surveys, and other data concerning building stock, population, business activity, commuting and traffic counts. The study identifies four potential driving forces for changes in travel behaviour: (1) the introduction of the light rail; (2) a new high-frequency bus network; (3) increased rates in the toll cordon system; and (4) changes in the urban structure. The study concluded that the introduction of light rail was the main driving force behind the growth in public transit use. The study also highlighted that transit use was highest in areas served by the light rail. The effects of the light rail investments are reinforced by an optimal location of the line with respect to potential users.     

Policy packages and state engagement: Comparing car-use reduction policy in two Norwegian cities

Policy packages are structures used to combine different policy measures and address multiple objectives. This paper links local-level policy packaging with national authorities’ environmental strategies. Applying a multilevel-governance perspective, it examines how state engagement influences the integration of car-use reduction strategies in local policy packages. Two policy packages are empirically compared, one from the larger Norwegian city of Trondheim and one from the mid-sized city of Bodø. While both policy packages reveal ambivalence in whether to facilitate or restrict car usage, the strategies employed in Trondheim to mitigate the effects of road building are stronger than those used in Bodø. In Trondheim, more resources are used for climate-friendly transport and stronger regulation is applied to integrate land-use and transport policy. In explaining this, different levels of state engagement are emphasised. The study reveals how, both financially and in the building of institutional capacity, the approach of national authorities prioritises the larger city.     

Making urban road pricing acceptable and effective: searching for quality and equity in urban mobility

Urban Road Pricing has been proposed many times as a powerful instrument to fight congestion in urban traffic, but has systematically faced a hostile political envirionment, due to lack of confidence on its promised (traffic) results and fear of its political consequences. Lack of action in this front is contributing to stable or even growing congestion problems in most large cities.This paper tries to address the problem with a fresh look at the objectives of road pricing and at the reasons for that political hostility. For managing and developing the urban mobility system, efficiency and equity are normally taken as the basic economic objectives. Sustainability objectives may be integrated in the efficiency objective if we are able to represent adequately the costs of the resources consumed in the process. Political hostility is normally based on having to pay for what was freely available, and on the risk of exclusion for those with little revenue available for the extra cost of driving into the city.Pursuit of efficency leads to suggestion of marginal social cost pricing but this is hard to explain to the public and application of this principle is fraught with pitfalls since some components of that cost get smaller as traffic grows (noise related costs for example). Pricing is still a good option but the objective has to be something easier to understand and to serve as a target for mobility managers. That “new” objective is quality of the mobility system, with a meaning similar to that of “level of service” in traffic engineering, and prices should be managed to across space, time and transport modes in such a way that provision of service is made with good quality in all components.Pursuit of equity leads to some form of rationing, which has often been associated with high transaction costs and abuse by the administrators. But the use of electronic road pricing should allow easy ways to address the rationing process without such high costs. The basic proposition is that all local taxpayers receive as a direct restitution of their tax contribution a certain amount of “mobility rights”, which can be used both for private car driving in the tolled areas and for riding public transport.These principles are easily applicable with a variety of technical solutions for road pricing, from the simplest cordon pricing to the more sophisticated “pay-as-you-go” schemes. The paper addresses this question of implementation and argues for increasingly sophisticated schemes, as people get accustomed to the principles and finer targeting of demand segments may be needed.     

Hong Kong’s low car dependence: lessons and prospects

Reducing car dependency, and hence traffic, have become key transport objectives of many cities and countries. Despite relatively high levels of wealth, Hong Kong has never become a car-dependent location. Using results of a survey of 340 young Hong Kong people and five focus group discussions, this paper argues that there are lessons to be learned from Hong Kong, and that transport policies, rather than population density, are mainly responsible for the low levels of car ownership and use. It also shows, however, that without even stricter policies, car ownership and use could increase substantially in the future.     

The impact of unseasonable or extreme weather on traffic activity within Lothian region,Scotland

Little has been reported on the variation in traffic activity with either unseasonable or extreme weather conditions. This paper reports on an investigation into such relationships for the former Lothian Region (now split into four administrative districts), in Scotland.Daily traffic activity together with meteorological data was gathered for the period between 1987 and 1991. This data was used to develop a simple model to predict traffic activity based on yearly, monthly and daily variations. A similar model was developed to predict meteorological variables based on monthly variations. The differences in the observed and predicted values were used in the 50% test to determine whether or not unseasonable weather was linked to changes in traffic activity. The changes in the average weekday traffic activity, although significant, were less than 3% for unseasonable sunshine hours, maximum temperature, minimum temperature and rainfall. However at weekends there were reductions of more than 4% in the average traffic activity on both the days with the highest rainfalls and the days with lower than expected minimum temperatures.Similar comparisons were made to determine whether or not there were links between traffic activity and extreme weather conditions. There were similar slight but significant changes in average weekday traffic activity with the extremes of rainfall, sunshine hours, maximum temperature and minimum temperature. However there was an average reduction of 10% in weekday traffic activity when snow was lying. At weekends there was an average reduction of 4% in traffic activity on the days with the highest rainfall and an average reduction of 15% on the days when snow was lying.     

Decomposing the decoupling of Danish road freight traffic growth and economic growth

In recent years many European countries have seen a decoupling of the growth in road freight traffic (vehicle kilometres) from economic growth. A similar decoupling has not been observed in road freight transport (tonne kilometres). In this paper the historical growth in national Danish road freight traffic and transport is attributed to causes using a Divisia index decomposition method. It is demonstrated that overall road freight traffic growth is a consequence of often opposite pointing growth effects in the underlying factors. The observed decoupling of road freight traffic growth from economic growth is mainly the result of use of larger vehicles, increasing average loads, and less empty running. Growth in road freight transport is primarily caused by growth in production. A decrease in the number of tons lifted per tonne produced (the handling factor) is offset by an increase in the tonne kilometres per tonne lifted.     

How efficient and productive are road toll companies?: Evidence from Norway

This article evaluates the technical efficiency of toll companies, i.e., how toll companies perform relative to each other, their productivity, and whether toll companies improve their efficiency from one year to the next relative to the best performers. The rationale for this study is that Norwegian road toll companies have been criticized for not being as efficient as they should; it has been claimed that some have very large operational costs compared to their peers and hence are inefficient. The framework for analysis is Data Envelopment Analysis and its subsequent Malmquist Productivity indices. The data are from the accounting period of 2001–2004 and contain information on 18 companies. The results show that: (1) there is a potential for efficiency increases of about 14%, (2) there are economies of scale in the industry in that larger companies (as measured by number of lanes served) tend to be more efficient compared to smaller companies, and (3) there has been a productivity increase in the sector of about 1%, and this progress is due more to companies employing a newer and more effective method for collecting funds and less to improving efficiency from one year to the next. Finally, these findings suggest that the Norwegian road authorities should consider reorganizing the toll sector such that the inherent economies of scale are utilized.