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The impact of cordon design on the performance of road pricing schemes

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  • May, A. D.
  • Liu, R.
  • Shepherd, S. P.
  • Sumalee, A.
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    Abstract

    Road pricing schemes are principally based on cordon-based pricing. Earlier studies have demonstrated that the performance of cordon schemes is critically dependent on cordon location. However, surveys of those designing such schemes indicate that they are opting for the simplest designs, in the interest of acceptability, and may well be overlooking designs which achieve greater economic benefit. A set of analytical procedures has been developed for identifying the locations for imposing charges and the charges at those points which are optimal in terms of economic efficiency. These are demonstrated on a simplified network of Cambridge. Tests on a larger network confirm that performance is very sensitive to cordon location. However, they also show that charging points selected by even a simple analytical procedure can achieve economic benefits around 50% higher than predefined cordons, and that relaxing the requirement to have uniform charges at all charging points can produce further substantial increases in economic benefits.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transport Policy.

    Volume (Year): 9 (2002)
    Issue (Month): 3 (July)
    Pages: 209-220

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    Handle: RePEc:eee:trapol:v:9:y:2002:i:3:p:209-220

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    References

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    1. May, A. D. & Milne, D. S., 2000. "Effects of alternative road pricing systems on network performance," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 34(6), pages 407-436, August.
    2. Erik T. Verhoef, 2000. "Second-Best Congestion Pricing in General Networks - Algorithms for Finding Second-Best Optimal Toll Levels and Toll Points," Tinbergen Institute Discussion Papers, Tinbergen Institute 00-084/3, Tinbergen Institute.
    3. Yang, Hai & Huang, Hai-Jun, 1998. "Principle of marginal-cost pricing: how does it work in a general road network?," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 32(1), pages 45-54, January.
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    Cited by:
    1. Jonathan Leape, 2006. "The London Congestion Charge," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(4), pages 157-176, Fall.
    2. Ian W.H. Parry, 2009. "Pricing Urban Congestion," Annual Review of Resource Economics, Annual Reviews, Annual Reviews, vol. 1(1), pages 461-484, 09.
    3. Steininger, Karl W. & Friedl, Birgit & Gebetsroither, Brigitte, 2007. "Sustainability impacts of car road pricing: A computable general equilibrium analysis for Austria," Ecological Economics, Elsevier, Elsevier, vol. 63(1), pages 59-69, June.
    4. Agachai Sumalee & Simon Shepherd & Anthony May, 2009. "Road user charging design: dealing with multi-objectives and constraints," Transportation, Springer, Springer, vol. 36(2), pages 167-186, March.
    5. Ahmadi Azari, Kian & Arintono, Sulistyo & Hamid, Hussain & Rahmat, Riza Atiq O.K., 2013. "Modelling demand under parking and cordon pricing policy," Transport Policy, Elsevier, Elsevier, vol. 25(C), pages 1-9.
    6. Eliasson, Jonas, 2008. "Lessons from the Stockholm congestion charging trial," Transport Policy, Elsevier, Elsevier, vol. 15(6), pages 395-404, November.
    7. Gühnemann, Astrid & Koh, Andrew & Shepherd, Simon & Lawler, Mary, 2011. "Implications of interdependencies between charging strategies of local authorities for the protection of sensitive areas in the Trans-Pennine Corridor," Utilities Policy, Elsevier, Elsevier, vol. 19(1), pages 42-52, January.
    8. Gentile, Guido & Papola, Natale & Persia, Luca, 2005. "Advanced pricing and rationing policies for large scale multimodal networks," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 39(7-9), pages 612-631.
    9. Eliasson, Jonas & Jonsson, Lina, 2011. "The unexpected "yes": Explanatory factors behind the positive attitudes to congestion charges in Stockholm," Transport Policy, Elsevier, Elsevier, vol. 18(4), pages 636-647, August.
    10. Sumalee, Agachai & May, Tony & Shepherd, Simon, 2005. "Comparison of judgmental and optimal road pricing cordons," Transport Policy, Elsevier, Elsevier, vol. 12(5), pages 384-390, September.
    11. 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, Elsevier, vol. 39(7-9), pages 813-834.
    12. 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, Elsevier, vol. 41(7), pages 655-671, August.
    13. Whitehead, Tim, 2005. "Transport charging interventions and economic activity," Transport Policy, Elsevier, Elsevier, vol. 12(5), pages 451-463, September.
    14. Richard J. Arnott, 2005. "City Tolls – One Element of an Effective Policy Cocktail," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 3(3), pages 5-11, November.
    15. Stewart, Kathryn, 2007. "Tolling traffic links under stochastic assignment: Modelling the relationship between the number and price level of tolled links and optimal traffic flows," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 41(7), pages 644-654, August.
    16. de Palma, André & Kilani, Moez & Lindsey, Robin, 2005. "Congestion pricing on a road network: A study using the dynamic equilibrium simulator METROPOLIS," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 39(7-9), pages 588-611.
    17. Meng, Qiang & Liu, Zhiyuan & Wang, Shuaian, 2012. "Optimal distance tolls under congestion pricing and continuously distributed value of time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 48(5), pages 937-957.

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