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Comparison of judgmental and optimal road pricing cordons

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  • Sumalee, Agachai
  • May, Tony
  • Shepherd, Simon

Abstract

The performance of cordon pricing schemes is critically dependent on the location chosen for the cordon, and the toll imposed. Most cordon designs have been based on professional judgment, in the absence of guidance on the principles of efficient design. In this paper, a methodology based on Genetic Algorithms has been developed to identify the optimal location and toll level for one or more cordons, for a given objective function, with or without constraints on the design or required outcomes. To compare the performance of judgmental and optimal cordon designs, the method has been tested on a network of Edinburgh, with optimisation designed to achieve welfare maximisation with and without constraints on desired level of revenue and equity impact. The methodology is shown to generate appropriate solutions to all of these problems. The optimal single cordon achieves welfare benefits which are double those of the best judgmentally designed cordon. Constrained optima inevitably achieve lower benefits, but it is possible to design them so that this loss is minimised.

Suggested Citation

  • Sumalee, Agachai & May, Tony & Shepherd, Simon, 2005. "Comparison of judgmental and optimal road pricing cordons," Transport Policy, Elsevier, vol. 12(5), pages 384-390, September.
    • Handle: RePEc:eee:trapol:v:12:y:2005:i:5:p:384-390
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    Cited by:

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    2. Souche, Stéphanie & Mercier, Aurélie & Ovtracht, Nicolas, 2015. "Income and access inequalities of a cordon pricing," Research in Transportation Economics, Elsevier, vol. 51(C), pages 20-30.
    3. Souche-Le Corvec, Stéphanie & Mercier, Aurélie & Ovtracht, Nicolas & Chevallier, Amandine, 2019. "Urban toll and electric vehicles: The winning ticket for Lyon Metropolitan Area (France)," Research in Transportation Economics, Elsevier, vol. 73(C), pages 17-33.
    4. Mogens Fosgerau & Kurt Van Dender, 2013. "Road pricing with complications," Transportation, Springer, vol. 40(3), pages 479-503, May.
    5. 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.
    6. Stéphanie Souche & Aurelie Mercier & Nicolas Ovtracht, 2016. "The impacts of urban pricing on social and spatial inequalities: The case study of Lyon (France)," Urban Studies, Urban Studies Journal Limited, vol. 53(2), pages 373-399, February.
    7. Verhoef, Erik T. & Koh, Andrew & Shepherd, Simon, 2010. "Pricing, capacity and long-run cost functions for first-best and second-best network problems," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 870-885, August.
    8. 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.
    9. Georgina Santos & Erik Verhoef, 2011. "Road Congestion Pricing," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 23, Edward Elgar Publishing.
    10. Qiang Meng & Zhiyuan Liu, 2011. "Trial-and-error method for congestion pricing scheme under side-constrained probit-based stochastic user equilibrium conditions," Transportation, Springer, vol. 38(5), pages 819-843, September.
    11. André De Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the monocentric city: theory and application to Paris region," Recherches économiques de Louvain, De Boeck Université, vol. 77(2), pages 105-124.
    12. Chandra Balijepalli & Simon Shepherd, 2016. "Cordon tolls and competition between cities with symmetric and asymmetric interactions," Transportation, Springer, vol. 43(5), pages 797-821, September.
    13. Agachai Sumalee & Simon Shepherd & Anthony May, 2009. "Road user charging design: dealing with multi-objectives and constraints," Transportation, Springer, vol. 36(2), pages 167-186, March.
    14. Pratik Verma & Shaurya Agarwal & Pushkin Kachroo & Anjala Krishen, 2017. "Declining transportation funding and need for analytical solutions: dynamics and control of VMT tax," Journal of Marketing Analytics, Palgrave Macmillan, vol. 5(3), pages 131-140, December.
    15. Hammar, Henrik & Jagers, Sverker C., 2007. "What is a fair CO2 tax increase? On fair emission reductions in the transport sector," Ecological Economics, Elsevier, vol. 61(2-3), pages 377-387, March.
    16. Shepherd, Simon & Balijepalli, Chandra, 2015. "A game of two cities: A toll setting game with experimental results," Transport Policy, Elsevier, vol. 38(C), pages 95-109.
    17. Maruyama, Takuya & Sumalee, Agachai, 2007. "Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 655-671, August.

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