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Modelling the effects of road pricing on traffic in Singapore

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  • Olszewski, Piotr
  • Xie, Litian
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    Abstract

    With increasing worldwide interest in the application of urban road pricing, the experience of Singapore can be very useful. Under the Singapore Electronic Road Pricing (ERP) system, charges for entering the city centre and using some expressways vary by time of day and are being periodically revised in order to maintain traffic speeds within the desirable bands. Traffic response to these revisions shows that demand elasticity with respect to pricing is higher for cars than for other vehicles and higher for expressways than for the city centre cordon. It is also lower in the morning peak and higher in the afternoon. A discrete choice based model of motorist response to pricing is proposed for a single toll point with peak period variable pricing. The choices considered include the time interval of travel and re-routing to avoid the toll. The model was calibrated for one expressway and two arterial roads using only traffic volume data collected before and after ERP introduction. The model reflected well the peak spreading effect of variable road pricing and the penalties for rescheduling and re-routing of trips. In general, the Singapore experience suggests that variable pricing is an effective method of controlling congestion.

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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: 755-772

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    Handle: RePEc:eee:transa:v:39:y:2005:i:7-9:p:755-772

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    References

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    Cited by:
    1. Jou, Rong-Chang & Chiou, Yu-Chiun & Chen, Ke-Hong & Tan, Hao-I, 2012. "Freeway drivers’ willingness-to-pay for a distance-based toll rate," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 549-559.
    2. Xie, Litian & Olszewski, Piotr, 2011. "Modelling the effects of road pricing on traffic using ERP traffic data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(6), pages 512-522, July.
    3. Lai, Li-Hua, 2008. "An evaluation of fuzzy transportation underwriting systematic risk," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1231-1237, November.
    4. Chu, Singfat, 2012. "Allocation flexibility and price efficiency within Singapore’s Vehicle Quota System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1541-1550.
    5. Singfat Chu, 2011. "Sealed v/s open bids for certificates of entitlement under the vehicle quota system in Singapore," Transportation, Springer, vol. 38(2), pages 215-226, March.
    6. Piotr Olszewski, 2007. "Singapore motorisation restraint and its implications on travel behaviour and urban sustainability," Transportation, Springer, vol. 34(3), pages 319-335, May.
    7. Holgin-Veras, José, 2008. "Necessary conditions for off-hour deliveries and the effectiveness of urban freight road pricing and alternative financial policies in competitive markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 392-413, February.
    8. 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.
    9. Jou, Rong-Chang & Huang, Guei-Lang, 2014. "Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots," Transport Policy, Elsevier, vol. 31(C), pages 10-18.
    10. De Leon, Marycruz & Fullerton, Thomas M., Jr. & Kelley, Brian W., 2009. "Tolls, Exchange Rates, and Borderplex International Bridge Traffic," MPRA Paper 19861, University Library of Munich, Germany.
    11. 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.
    12. Sathaye, Nakul & Harley, Robert & Madanat, Samer, 2010. "Unintended environmental impacts of nighttime freight logistics activities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(8), pages 642-659, October.
    13. Condeço-Melhorado, Ana & Gutiérrez, Javier & García-Palomares, Juan Carlos, 2011. "Spatial impacts of road pricing: Accessibility, regional spillovers and territorial cohesion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(3), pages 185-203, March.
    14. 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.
    15. Daniel Albalate & Germa Bel, 2008. "Motorways, tolls and road safety.Evidence from European Panel Data," IREA Working Papers 200802, University of Barcelona, Research Institute of Applied Economics, revised Feb 2008.
    16. 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.
    17. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008.
    18. 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.
    19. Liu, Shiyong & Triantis, Konstantinos P. & Sarangi, Sudipta, 2010. "A framework for evaluating the dynamic impacts of a congestion pricing policy for a transportation socioeconomic system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(8), pages 596-608, October.
    20. Anas, Alex & Hiramatsu, Tomoru, 2013. "The economics of cordon tolling: General equilibrium and welfare analysis," Economics of Transportation, Elsevier, vol. 2(1), pages 18-37.
    21. Elvik, Rune & Ramjerdi, Farideh, 2014. "A comparative analysis of the effects of economic policy instruments in promoting environmentally sustainable transport," Transport Policy, Elsevier, vol. 33(C), pages 89-95.

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