IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v111y2018icp244-265.html
   My bibliography  Save this article

Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design

Author

Listed:
  • Li, Zhi-Chun
  • Wang, Ya-Dong

Abstract

This paper presents a multimodal urban system equilibrium model to address cordon toll pricing and bus service design issues in a two-dimensional monocentric city. Commuters are assumed to travel by auto or bus from their home locations to their workplace located in the city center through a ring-radial routing system. Auto users must pay tolls when passing through the cordons installed on the radial major roads. The multimodal two-dimensional urban system equilibrium is first formulated and its properties are analytically explored. A social welfare maximization model that simultaneously determines the optimal cordon toll location, toll level, bus service frequency and fare on each radial major road is then proposed. The effects of different tolling schemes (uniform and differential cordon-based, first-best, and no toll) on the multimodal urban system are also examined and compared.

Suggested Citation

  • Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.
  • Handle: RePEc:eee:transb:v:111:y:2018:i:c:p:244-265
    DOI: 10.1016/j.trb.2018.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261517311256
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.trb.2018.03.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anas, Alex & Moses, Leon N., 1979. "Mode choice, transport structure and urban land use," Journal of Urban Economics, Elsevier, vol. 6(2), pages 228-246, April.
    2. George Kocur & Chris Hendrickson, 1982. "Design of Local Bus Service with Demand Equilibration," Transportation Science, INFORMS, vol. 16(2), pages 149-170, May.
    3. Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November.
    4. Song, Yan & Zenou, Yves, 2006. "Property tax and urban sprawl: Theory and implications for US cities," Journal of Urban Economics, Elsevier, vol. 60(3), pages 519-534, November.
    5. 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.
    6. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    7. Liu, Tian-Liang & Huang, Hai-Jun & Yang, Hai & Zhang, Xiaoning, 2009. "Continuum modeling of park-and-ride services in a linear monocentric city with deterministic mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 692-707, July.
    8. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2005. "Optimal cordon pricing in a non-monocentric city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 723-736.
    9. Li, Zhi-Chun & Guo, Qian-Wen & Lam, William H.K. & Wong, S.C., 2015. "Transit technology investment and selection under urban population volatility: A real option perspective," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 318-340.
    10. McDonald, John F., 2009. "Calibration of a monocentric city model with mixed land use and congestion," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 90-96, January.
    11. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
    12. Lo, Hong K. & Yip, C. W. & Wan, K. H., 2003. "Modeling transfer and non-linear fare structure in multi-modal network," Transportation Research Part B: Methodological, Elsevier, vol. 37(2), pages 149-170, February.
    13. Rouwendal, Jan & Verhoef, Erik T., 2006. "Basic economic principles of road pricing: From theory to applications," Transport Policy, Elsevier, vol. 13(2), pages 106-114, March.
    14. Li, Zhi-Chun & Chen, Ya-Juan & Wang, Ya-Dong & Lam, William H.K. & Wong, S.C., 2013. "Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 927-937.
    15. Jonas Eliasson & Lars-Göran Mattsson, 2001. "Transport and Location Effects of Road Pricing: A Simulation Approach," Journal of Transport Economics and Policy, University of Bath, vol. 35(3), pages 417-456, September.
    16. Wong, Walter K.I. & Noland, Robert B. & Bell, Michael G.H., 2005. "The theory and practice of congestion charging," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 567-570.
    17. De Lara, Michel & de Palma, André & Kilani, Moez & Piperno, Serge, 2013. "Congestion pricing and long term urban form: Application to Paris region," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 282-295.
    18. Wong, S. C., 1994. "An alternative formulation of D'Este's trip assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 28(3), pages 187-196, June.
    19. Wang, Judith Y. T. & Yang, Hai & Lindsey, Robin, 2004. "Locating and pricing park-and-ride facilities in a linear monocentric city with deterministic mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 38(8), pages 709-731, September.
    20. Small, Kenneth A, 2004. "6. Road Pricing And Public Transport," Research in Transportation Economics, Elsevier, vol. 9(1), pages 133-158, January.
    21. Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    22. Zhang, Xiaoning & Yang, Hai, 2004. "The optimal cordon-based network congestion pricing problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 517-537, July.
    23. Youngsun Kwon, 2003. "The Effect of a Change in Wages on Welfare in a Two–Class Monocentric City," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 63-72, February.
    24. Zhi-Chun Li & Qian-Wen Guo, 2017. "Optimal time for implementing cordon toll pricing scheme in a monocentric city," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 163-190, March.
    25. Huang, Hai-Jun, 2002. "Pricing and logit-based mode choice models of a transit and highway system with elastic demand," European Journal of Operational Research, Elsevier, vol. 140(3), pages 562-570, August.
    26. Robin Lindsey, 2010. "Reforming Road User Charges: A Research Challenge For Regional Science," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 471-492, February.
    27. Badia, Hugo & Estrada, Miquel & Robusté, Francesc, 2014. "Competitive transit network design in cities with radial street patterns," Transportation Research Part B: Methodological, Elsevier, vol. 59(C), pages 161-181.
    28. Robert M. Solow, 1973. "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 602-618, Autumn.
    29. Eric Pels & Erik T Verhoef, 2007. "Infrastructure Pricing and Competition between Modes in Urban Transport," Environment and Planning A, , vol. 39(9), pages 2119-2138, September.
    30. MA, Xiaosu & LO, Hong K., 2013. "On joint railway and housing development strategy," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 451-467.
    31. Peng, Ya-Ting & Li, Zhi-Chun & Choi, Keechoo, 2017. "Transit-oriented development in an urban rail transportation corridor," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 269-290.
    32. Marvin Kraus, 2003. "Monocentric Cities," Boston College Working Papers in Economics 559, Boston College Department of Economics.
    33. Badia, Hugo & Estrada, Miquel & Robusté, Francesc, 2016. "Bus network structure and mobility pattern: A monocentric analytical approach on a grid street layout," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 37-56.
    34. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
    35. D'Este, Glen, 1987. "Trip assignment to radial major roads," Transportation Research Part B: Methodological, Elsevier, vol. 21(6), pages 433-442, December.
    36. Kono, Tatsuhito & Joshi, Kirti Kusum & Kato, Takeaki & Yokoi, Takahisa, 2012. "Optimal regulation on building size and city boundary: An effective second-best remedy for traffic congestion externality," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 619-630.
    37. Beckmann, Martin J., 1974. "Spatial equilibrium in the housing market," Journal of Urban Economics, Elsevier, vol. 1(1), pages 99-107, January.
    38. Alex Anas & Robin Lindsey, 2011. "Reducing Urban Road Transportation Externalities: Road Pricing in Theory and in Practice," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 66-88, Winter.
    39. Chen, Haoyu & Gu, Weihua & Cassidy, Michael J. & Daganzo, Carlos F., 2015. "Optimal transit service atop ring-radial and grid street networks: A continuum approximation design method and comparisons," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 755-774.
    40. Chu, Chih-Peng & Tsai, Jyh-Fa, 2008. "The optimal location and road pricing for an elevated road in a corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 842-856, June.
    41. Ho, H.W. & Wong, S.C. & Yang, Hai & Loo, Becky P.Y., 2005. "Cordon-based congestion pricing in a continuum traffic equilibrium system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 813-834.
    42. Wirasinghe, S.C. & Kattan, Lina, 2016. "Long-term planning for ring-radial urban rail transit networksAuthor-Name: Saidi, Saeid," Transportation Research Part B: Methodological, Elsevier, vol. 86(C), pages 128-146.
    43. Zhi-Chun Li & Ya-Dong Wang & William Lam & Agachai Sumalee & Keechoo Choi, 2014. "Design of Sustainable Cordon Toll Pricing Schemes in a Monocentric City," Networks and Spatial Economics, Springer, vol. 14(2), pages 133-158, June.
    44. Zhi-Chun Li & William H.K. Lam & S.C. Wong, 2009. "Optimization of a Bus and Rail Transit System with Feeder Bus Services under Different Market Regimes," Springer Books, in: William H. K. Lam & S. C. Wong & Hong K. Lo (ed.), Transportation and Traffic Theory 2009: Golden Jubilee, chapter 0, pages 495-516, Springer.
    45. Beckmann, Martin J., 1969. "On the distribution of urban rent and residential density," Journal of Economic Theory, Elsevier, vol. 1(1), pages 60-67, June.
    46. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Choi, Keechoo, 2012. "Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 710-728.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Yanan & Li, Xiang & Zhang, Sicheng, 2021. "Optimal pricing of customized bus services and ride-sharing based on a competitive game model," Omega, Elsevier, vol. 103(C).
    2. Zhong, Shaopeng & Jiang, Yu & Nielsen, Otto Anker, 2022. "Lexicographic multi-objective road pricing optimization considering land use and transportation effects," European Journal of Operational Research, Elsevier, vol. 298(2), pages 496-509.
    3. Li, Zhi-Chun & Ma, Jia-Chun, 2021. "Investing in inter-city and/or intra-city rail lines? A general equilibrium analysis for a two-city system," Transport Policy, Elsevier, vol. 108(C), pages 59-82.
    4. André de Palma & Zhi-Chun Li & De-Ping Yu, 2023. "An analytical model for residential location choices of heterogeneous households in a monocentric city with stochastic bottleneck congestion," THEMA Working Papers 2023-01, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    5. Hugo Badia, 2020. "Comparison of Bus Network Structures in Face of Urban Dispersion for a Ring-Radial City," Networks and Spatial Economics, Springer, vol. 20(1), pages 233-271, March.
    6. Zhi-Chun Li & Qian Liu, 2020. "Optimal deployment of emergency rescue stations in an urban transportation corridor," Transportation, Springer, vol. 47(1), pages 445-473, February.
    7. Li, Zhi-Chun & Zhang, Liping, 2020. "The two-mode problem with bottleneck queuing and transit crowding: How should congestion be priced using tolls and fares?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 46-76.
    8. Chen, Zhi & Wu, Wen-Xiang & Huang, Hai-Jun & Shang, Hua-Yan, 2022. "Modeling traffic dynamics in periphery-downtown urban networks combining Vickrey's theory with Macroscopic Fundamental Diagram: user equilibrium, system optimum, and cordon pricing," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 278-303.
    9. Hong, Liu & Ouyang, Min & Xu, Min & Hu, Peipei, 2020. "Time-varied accessibility and vulnerability analysis of integrated metro and high-speed rail systems," Reliability Engineering and System Safety, Elsevier, vol. 193(C).
    10. Muhammad Fadhlullah Abu Bakar & Shuhairy Norhisham & Herda Yati Katman & Chow Ming Fai & Nor Najwa Irina Mohd Azlan & Nur Sarah Shaziah Samsudin, 2022. "Service Quality of Bus Performance in Asia: A Systematic Literature Review and Conceptual Framework," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    11. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    12. Sang, Jinyan & Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2019. "Design of build-operate-transfer contract for integrated rail and property development with uncertainty in future urban population," Transportation Research Part B: Methodological, Elsevier, vol. 130(C), pages 36-66.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Zhi-Chun Li & Qian-Wen Guo, 2017. "Optimal time for implementing cordon toll pricing scheme in a monocentric city," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 163-190, March.
    3. Li, Zhi-Chun & Chen, Ya-Juan & Wang, Ya-Dong & Lam, William H.K. & Wong, S.C., 2013. "Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 927-937.
    4. Li, Zhi-Chun & Ma, Jia-Chun, 2021. "Investing in inter-city and/or intra-city rail lines? A general equilibrium analysis for a two-city system," Transport Policy, Elsevier, vol. 108(C), pages 59-82.
    5. Peng, Ya-Ting & Li, Zhi-Chun & Choi, Keechoo, 2017. "Transit-oriented development in an urban rail transportation corridor," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 269-290.
    6. Zhi-Chun Li & Ya-Dong Wang & William Lam & Agachai Sumalee & Keechoo Choi, 2014. "Design of Sustainable Cordon Toll Pricing Schemes in a Monocentric City," Networks and Spatial Economics, Springer, vol. 14(2), pages 133-158, June.
    7. Guo, Qianwen & Sun, Yanshuo & Li, Zhi-Chun & Li, Zhongfei, 2017. "An integrated model for road capacity choice and cordon toll pricing," Research in Transportation Economics, Elsevier, vol. 62(C), pages 68-79.
    8. Sang, Jinyan & Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2019. "Design of build-operate-transfer contract for integrated rail and property development with uncertainty in future urban population," Transportation Research Part B: Methodological, Elsevier, vol. 130(C), pages 36-66.
    9. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Choi, Keechoo, 2012. "Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 710-728.
    10. Jyh-Fa Tsai & Shao-Yu Lu, 2018. "Reducing traffic externalities by multiple-cordon pricing," Transportation, Springer, vol. 45(2), pages 597-622, March.
    11. Huang, Hai-Jun & Xia, Tian & Tian, Qiong & Liu, Tian-Liang & Wang, Chenlan & Li, Daqing, 2020. "Transportation issues in developing China's urban agglomerations," Transport Policy, Elsevier, vol. 85(C), pages 1-22.
    12. Zhang, Wenjia & Kockelman, Kara M., 2016. "Congestion pricing effects on firm and household location choices in monocentric and polycentric cities," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 1-12.
    13. Fournier, Nicholas, 2021. "Hybrid pedestrian and transit priority zoning policies in an urban street network: Evaluating network traffic flow impacts with analytical approximation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 254-274.
    14. André de Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France," Post-Print hal-00348437, HAL.
    15. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    16. Li, Zhi-Chun & Guo, Qian-Wen & Lam, William H.K. & Wong, S.C., 2015. "Transit technology investment and selection under urban population volatility: A real option perspective," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 318-340.
    17. Tatsuhito Kono & Hiroya Kawaguchi, 2017. "Cordon Pricing and Land‐Use Regulation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(2), pages 405-434, April.
    18. Chu, Chih-Peng & Tsai, Jyh-Fa, 2008. "The optimal location and road pricing for an elevated road in a corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 842-856, June.
    19. Shumin Zhou & Huijun Sun & Tianchao Guan & Tongfei Li, 2018. "Equilibrium Model of Housing Choice for Heterogeneous Households under Public Rental Housing Policy," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    20. De Lara, Michel & de Palma, André & Kilani, Moez & Piperno, Serge, 2013. "Congestion pricing and long term urban form: Application to Paris region," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 282-295.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:111:y:2018:i:c:p:244-265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.