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Credit-based congestion pricing: a policy proposal and the public's response

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  • Kockelman, Kara M.
  • Kalmanje, Sukumar
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    Abstract

    Credit-based congestion pricing (CBCP) is a novel strategy proposed here. A revenue-neutral policy where road tolls are based on the negative externalities associated with driving under congested conditions, its generated tolls are returned to all licensed drivers in a uniform fashion, as a sort of driving "allowance". Essentially, the "average" driver pays nothing, while frequent long-distance peak-period drivers subsidize others, in effect paying them to stay off congested roads. In order to anticipate initial public response to a CBCP policy, 500 individuals completed a detailed survey regarding perceptions of, and likely travel reactions to, such a policy. Weights were developed to correct for survey biases in gender, age and household income. Analytical results suggest that 25% support this new strategy, and support is strongly related to familiarity with the concept of congestion pricing. Respondent estimates of congested travel times to work or school are almost double the uncongested times. Values of travel time vary greatly across respondents, as also trip flexibility. Those without children, younger respondents, and those with fewer vehicles appear more willing to support such a policy and more likely to modify their travel behaviors. Older people and full time employed people were willing to pay higher CBCP tolls to drive during peak hours and so were men as compared to women. The survey results corroborate the potential of a CBCP policy to alleviate congestion and generate benefits across income groups and traveler types.

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    Bibliographic Info

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

    Volume (Year): 39 (2005)
    Issue (Month): 7-9 ()
    Pages: 671-690

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    Handle: RePEc:eee:transa:v:39:y:2005:i:7-9:p:671-690

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    References

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    Cited by:
    1. Armelius, Hanna & Hultkrantz, Lars, 2006. "The politico-economic link between public transport and road pricing: An ex-ante study of the Stockholm road-pricing trial," Transport Policy, Elsevier, vol. 13(2), pages 162-172, March.
    2. 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.
    3. Basso, Leonardo J. & Jara-Díaz, Sergio R., 2012. "Integrating congestion pricing, transit subsidies and mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 890-900.
    4. Nie, Yu (Marco) & Liu, Yang, 2010. "Existence of self-financing and Pareto-improving congestion pricing: Impact of value of time distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(1), pages 39-51, January.
    5. Liu, Yang & Nie, Yu (Marco), 2011. "Morning commute problem considering route choice, user heterogeneity and alternative system optima," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 619-642.
    6. Tian, Li-Jun & Yang, Hai & Huang, Hai-Jun, 2013. "Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 54(C), pages 1-13.
    7. Sabounchi, Nasim S. & Triantis, Konstantinos P. & Sarangi, Sudipta & Liu, Shiyong, 2014. "Dynamic simulation modeling and policy analysis of an area-based congestion pricing scheme for a transportation socioeconomic system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 357-383.
    8. Podgorski, Kaethe V. & Kockelman, Kara M., 2006. "Public perceptions of toll roads: A survey of the Texas perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(10), pages 888-902, December.
    9. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August.
    10. Kockelman, Kara M. & Lemp, Jason D., 2011. "Anticipating new-highway impacts: Opportunities for welfare analysis and credit-based congestion pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 825-838, October.
    11. Bulteau, Julie, 2012. "Tradable emission permit system for urban motorists: The neo-classical standard model revisited," Research in Transportation Economics, Elsevier, vol. 36(1), pages 101-109.
    12. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," University of California Transportation Center, Working Papers qt9js9z8gz, University of California Transportation Center.
    13. Hensher, David A. & Bliemer, Michiel C.J., 2014. "What type of road pricing scheme might appeal to politicians? Viewpoints on the challenge in gaining the citizen and public servant vote by staging reform," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 227-237.
    14. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    15. Guohui Zhang & Zhong Wang & Khali Persad & C. Walton, 2014. "Enhanced traffic information dissemination to facilitate toll road utilization: a nested logit model of a stated preference survey in Texas," Transportation, Springer, vol. 41(2), pages 231-249, March.
    16. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
    17. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    18. Chang, Hsin-Li & Wu, Shun-Cheng, 2008. "Exploring the vehicle dependence behind mode choice: Evidence of motorcycle dependence in Taipei," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 307-320, February.
    19. Wang, Xiaolei & Yang, Hai & Zhu, Daoli & Li, Changmin, 2012. "Tradable travel credits for congestion management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 426-437.
    20. 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.
    21. Xiao, Feng & Qian, Zhen (Sean) & Zhang, H. Michael, 2013. "Managing bottleneck congestion with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 1-14.
    22. Guo, Xiaolei & Yang, Hai, 2010. "Pareto-improving congestion pricing and revenue refunding with multiple user classes," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 972-982, September.

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