IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v43y2009i2p228-243.html
   My bibliography  Save this article

Toll Policies for Mitigating Hazardous Materials Transport Risk

Author

Listed:
  • Patrice Marcotte

    (Université de Montréal, Montréal, Québec, and CIRRELT, Montréal, Québec H3C 3J7, Canada)

  • Anne Mercier

    (Université de Montréal, Montréal, Québec, and CIRRELT, Montréal, Québec H3C 3J7, Canada)

  • Gilles Savard

    (École Polytechnique de Montréal, Montréal, Québec, and GERAD, Montréal, Québec H3T 1J4, Canada)

  • Vedat Verter

    (McGill University, Montréal, Québec H3A 1G5, Canada, and CIRRELT, Montréal, Québec H3C 3J7, Canada)

Abstract

In this paper, we investigate toll setting as a policy tool to regulate the use of roads for dangerous goods shipments. We propose a mathematical formulation as well as a solution method for the hazardous materials toll problem. Based on a comparative analysis of proposed mathematical models, we show that toll policies can be more effective than the popular network design policies that identify road segments to be closed for vehicles carrying hazardous materials. We present a summary of computational experiments on a problem instance from Western Ontario, Canada.

Suggested Citation

  • Patrice Marcotte & Anne Mercier & Gilles Savard & Vedat Verter, 2009. "Toll Policies for Mitigating Hazardous Materials Transport Risk," Transportation Science, INFORMS, vol. 43(2), pages 228-243, May.
  • Handle: RePEc:inm:ortrsc:v:43:y:2009:i:2:p:228-243
    DOI: 10.1287/trsc.1080.0236
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.1080.0236
    Download Restriction: no

    File URL: https://libkey.io/10.1287/trsc.1080.0236?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
    ---><---

    References listed on IDEAS

    as
    1. AndrÊ de Palma & Robin Lindsey, 2000. "Private toll roads: Competition under various ownership regimes," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(1), pages 13-35.
    2. Martine Labbé & Patrice Marcotte & Gilles Savard, 1998. "A Bilevel Model of Taxation and Its Application to Optimal Highway Pricing," Management Science, INFORMS, vol. 44(12-Part-1), pages 1608-1622, December.
    3. Verhoef, Erik T., 2002. "Second-best congestion pricing in general networks. Heuristic algorithms for finding second-best optimal toll levels and toll points," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 707-729, September.
    4. 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.
    5. Ravindra K. Ahuja & James B. Orlin, 2001. "Inverse Optimization," Operations Research, INFORMS, vol. 49(5), pages 771-783, October.
    6. Vedat Verter & Erhan Erkut, 1997. "Incorporating Insurance Costs in Hazardous Materials Routing Models," Transportation Science, INFORMS, vol. 31(3), pages 227-236, August.
    7. Yang, Hai & Huang, Hai-Jun, 2004. "The multi-class, multi-criteria traffic network equilibrium and systems optimum problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 1-15, January.
    8. Robert B. Dial, 1999. "Network-Optimized Road Pricing: Part II: Algorithms and Examples," Operations Research, INFORMS, vol. 47(2), pages 327-336, April.
    9. Robert B. Dial, 1999. "Network-Optimized Road Pricing: Part I: A Parable and a Model," Operations Research, INFORMS, vol. 47(1), pages 54-64, February.
    10. T. C. A. Bashyam, 2000. "Service Design and Price Competition in Business Information Services," Operations Research, INFORMS, vol. 48(3), pages 362-375, June.
    11. Vedat Verter & Bahar Y. Kara, 2008. "A Path-Based Approach for Hazmat Transport Network Design," Management Science, INFORMS, vol. 54(1), pages 29-40, January.
    12. Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2008. "Joint Design and Pricing on a Network," Operations Research, INFORMS, vol. 56(5), pages 1104-1115, October.
    13. Akgun, Vedat & Erkut, Erhan & Batta, Rajan, 2000. "On finding dissimilar paths," European Journal of Operational Research, Elsevier, vol. 121(2), pages 232-246, March.
    14. Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2001. "A Bilevel Model for Toll Optimization on a Multicommodity Transportation Network," Transportation Science, INFORMS, vol. 35(4), pages 345-358, November.
    15. Liu, Louie Nan & McDonald, John F., 1999. "Economic efficiency of second-best congestion pricing schemes in urban highway systems," Transportation Research Part B: Methodological, Elsevier, vol. 33(3), pages 157-188, April.
    16. Phillip J. Lederer, 1993. "A Competitive Network Design Problem with Pricing," Transportation Science, INFORMS, vol. 27(1), pages 25-38, February.
    17. Lorenzo Castelli & Giovanni Longo & Raffaele Pesenti & Walter Ukovich, 2004. "Two-Player Noncooperative Games over a Freight Transportation Network," Transportation Science, INFORMS, vol. 38(2), pages 149-159, May.
    18. Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2000. "A Bilevel Model and Solution Algorithm for a Freight Tariff-Setting Problem," Transportation Science, INFORMS, vol. 34(3), pages 289-302, August.
    19. Dell'Olmo, Paolo & Gentili, Monica & Scozzari, Andrea, 2005. "On finding dissimilar Pareto-optimal paths," European Journal of Operational Research, Elsevier, vol. 162(1), pages 70-82, April.
    Full references (including those not matched with items on IDEAS)

    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. Tawfik, Christine & Gendron, Bernard & Limbourg, Sabine, 2022. "An iterative two-stage heuristic algorithm for a bilevel service network design and pricing model," European Journal of Operational Research, Elsevier, vol. 300(2), pages 512-526.
    2. Chi Xie & Xing Wu & Stephen Boyles, 2019. "Traffic equilibrium with a continuously distributed bound on travel weights: the rise of range anxiety and mental account," Annals of Operations Research, Springer, vol. 273(1), pages 279-310, February.
    3. Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2008. "Joint Design and Pricing on a Network," Operations Research, INFORMS, vol. 56(5), pages 1104-1115, October.
    4. Wang, Zhenjie & Zhang, Dezhi & Tavasszy, Lóránt & Fazi, Stefano, 2023. "Integrated multimodal freight service network design and pricing with a competing service integrator and heterogeneous shipper classes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    5. Chinmay Maheshwari & Kshitij Kulkarni & Druv Pai & Jiarui Yang & Manxi Wu & Shankar Sastry, 2024. "Congestion Pricing for Efficiency and Equity: Theory and Applications to the San Francisco Bay Area," Papers 2401.16844, arXiv.org.
    6. Yang, Hai & Zhang, Xiaoning & Meng, Qiang, 2004. "Modeling private highways in networks with entry-exit based toll charges," Transportation Research Part B: Methodological, Elsevier, vol. 38(3), pages 191-213, March.
    7. Christine Tawfik & Sabine Limbourg, 2019. "A Bilevel Model for Network Design and Pricing Based on a Level-of-Service Assessment," Transportation Science, INFORMS, vol. 53(6), pages 1609-1626, November.
    8. Afşar, Sezin & Brotcorne, Luce & Marcotte, Patrice & Savard, Gilles, 2016. "Achieving an optimal trade-off between revenue and energy peak within a smart grid environment," Renewable Energy, Elsevier, vol. 91(C), pages 293-301.
    9. Martine Labbé & Alessia Violin, 2016. "Bilevel programming and price setting problems," Annals of Operations Research, Springer, vol. 240(1), pages 141-169, May.
    10. Quang Minh Bui & Bernard Gendron & Margarida Carvalho, 2022. "A Catalog of Formulations for the Network Pricing Problem," INFORMS Journal on Computing, INFORMS, vol. 34(5), pages 2658-2674, September.
    11. Cipriani, Ernesto & Mannini, Livia & Montemarani, Barbara & Nigro, Marialisa & Petrelli, Marco, 2019. "Congestion pricing policies: Design and assessment for the city of Rome, Italy," Transport Policy, Elsevier, vol. 80(C), pages 127-135.
    12. Xu, Zhandong & Chen, Anthony & Liu, Xiaobo, 2023. "Time and toll trade-off with heterogeneous users: A continuous time surplus maximization bi-objective user equilibrium model," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 31-58.
    13. Yang, Hai & Huang, Hai-Jun, 2004. "The multi-class, multi-criteria traffic network equilibrium and systems optimum problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 1-15, January.
    14. Mohri, Seyed Sina & Mohammadi, Mehrdad & Gendreau, Michel & Pirayesh, Amir & Ghasemaghaei, Ali & Salehi, Vahid, 2022. "Hazardous material transportation problems: A comprehensive overview of models and solution approaches," European Journal of Operational Research, Elsevier, vol. 302(1), pages 1-38.
    15. Van Dender, Kurt, 2004. "Pricing transport networks with fixed residential location," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 289-307, May.
    16. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    17. Tikoudis, Ioannis, 2023. "Revisiting the Pigouvian tax in urban roads: Housing supply restrictions, leaking profits and spatial inequality," Economics of Transportation, Elsevier, vol. 35(C).
    18. Sandun Perera & Milind Dawande & Ganesh Janakiraman & Vijay Mookerjee, 2020. "Retail Deliveries by Drones: How Will Logistics Networks Change?," Production and Operations Management, Production and Operations Management Society, vol. 29(9), pages 2019-2034, September.
    19. Mustapha Bouhtou & Stan van Hoesel & Anton F. van der Kraaij & Jean-Luc Lutton, 2007. "Tariff Optimization in Networks," INFORMS Journal on Computing, INFORMS, vol. 19(3), pages 458-469, August.
    20. Li Li & Sridhar Tayur, 2005. "Medium-Term Pricing and Operations Planning in Intermodal Transportation," Transportation Science, INFORMS, vol. 39(1), pages 73-86, February.

    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:inm:ortrsc:v:43:y:2009:i:2:p:228-243. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.