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A model for optimizing electronic toll collection systems

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  • Levinson, David
  • Chang, Elva

Abstract

This paper examines the deployment of electronic toll collection (ETC) and develops a model to maximize social welfare associated with a toll plaza. A payment choice model estimates the share of traffic using ETC as a function of delay, price, and a fixed cost of acquiring the in-vehicle transponder. Delay in turn depends on the relative number of ETC and Manual Collection Lanes. Price depends on the discount given to users of the ETC Lanes. The fixed cost of acquiring the transponder (not simply a monetary cost, but also the effort involved in signing up for the program) is a key factor in the model. Once a traveler acquires the transponder, the cost of choosing ETC in the future declines significantly. Welfare depends on the market share of ETC, and includes delay and gasoline consumption, toll collection costs, and social costs such as air pollution. This work examines the best combination of ETC Lanes and toll discount to maximize welfare. Too many ETC lanes cause excessive delay to non-equipped users. Too high a discount costs the highway agency revenue needed to operate the facility. The model is applied to California¹s Carquinez Bridge, and recommendations are made concerning the number of dedicated ETC lanes and the appropriate ETC discount ,

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 37 (2003)
Issue (Month): 4 (May)
Pages: 293-314

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Handle: RePEc:eee:transa:v:37:y:2003:i:4:p:293-314

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References

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  1. David Levinson, 1997. "Job and Housing Tenure and the Journey to Work," Working Papers 199702, University of Minnesota: Nexus Research Group.
  2. Small, Kenneth A. & Kazimi, Camilla, 1995. "On the Costs of Air Pollution from Motor Vehicles," University of California Transportation Center, Working Papers qt0sx81025, University of California Transportation Center.
  3. Friedman, David A. & Waldfogel, Joel, 1995. "The Administrative and Compliance Cost of Manual Highway Toll Collection: Evidence From Massachusetts and New Jersey," National Tax Journal, National Tax Association, vol. 48(2), pages 217-28, June.
  4. Gillen, David & Li, Jianling & Dahlgren, Joy & Chang, Elva, 1999. "Assessing the Benefits and Costs of ITS Projects: Volume 2 An Application to Electronic Toll Collection," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1jv8j3zw, Institute of Transportation Studies, UC Berkeley.
  5. Gillen, David & Li, Jianling & Dahlgren, Joy & Chang, Elva, 1999. "Assessing the Benefits and Costs of ITS Projects: Volume 1 Methodology," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt72j6121z, Institute of Transportation Studies, UC Berkeley.
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Cited by:
  1. Holgun-Veras, Jos & Cetin, Mecit, 2009. "Optimal tolls for multi-class traffic: Analytical formulations and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 445-467, May.
  2. Sheu, Jiuh-Biing & Yang, Hai, 2008. "An integrated toll and ramp control methodology for dynamic freeway congestion management," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(16), pages 4327-4348.
  3. Holgui­n-Veras, Jose & Cetin, Mecit & Xia, Shuwen, 2006. "A comparative analysis of US toll policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(10), pages 852-871, December.
  4. Holguín-Veras, José, 2011. "Urban delivery industry response to cordon pricing, time-distance pricing, and carrier-receiver policies in competitive markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 802-824, October.

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