IDEAS home Printed from https://ideas.repec.org/p/nex/wpaper/etc.html
   My bibliography  Save this paper

A Model for Optimizing Electronic Toll Collection Systems

Author

Listed:
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

  • Elva Chang

Abstract

This paper examines the deployment of electronic toll collection (ETC) and develops a model to maximize social welfare associated with a toll plaza. A payment choice model estimates the share of traffic using ETC as a function of delay, price, and a fixed cost of acquiring the in-vehicle transponder. Delay in turn depends on the relative number of ETC and Manual Collection Lanes. Price depends on the discount given to users of the ETC Lanes. The fixed cost of acquiring the transponder (not simply a monetary cost, but also the effort involved in signing up for the program) is a key factor in the model. Once a traveler acquires the transponder, the cost of choosing ETC in the future declines significantly. Welfare depends on the market share of ETC, and includes delay and gasoline consumption, toll collection costs, and social costs such as air pollution. This work examines the best combination of ETC Lanes and toll discount to maximize welfare. Too many ETC lanes cause excessive delay to non-equipped users. Too high a discount costs the highway agency revenue needed to operate the facility. The model is applied to California¹s Carquinez Bridge, and recommendations are made concerning the number of dedicated ETC lanes and the appropriate ETC discount.

Suggested Citation

  • David Levinson & Elva Chang, 2003. "A Model for Optimizing Electronic Toll Collection Systems," Working Papers 200306, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:etc
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/11299/179910
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers 94-95-3, California Irvine - School of Social Sciences.
    2. Gillen, David & Li, Jianling & Dahlgren, Joy & Chang, Elva, 1999. "Assessing the Benefits and Costs of ITS Projects: Volume 1 Methodology," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt72j6121z, Institute of Transportation Studies, UC Berkeley.
    3. Gillen, David & Li, Jianling & Dahlgren, Joy & Chang, Elva, 1999. "Assessing the Benefits and Costs of ITS Projects: Volume 2 An Application to Electronic Toll Collection," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1jv8j3zw, Institute of Transportation Studies, UC Berkeley.
    4. David M. Levinson, 1997. "Job and housing tenure and the journey to work," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(4), pages 451-471.
    5. Friedman, David A. & Waldfogel, Joel, 1995. "The Administrative and Compliance Cost of Manual Highway Toll Collection: Evidence From Massachusetts and New Jersey," National Tax Journal, National Tax Association, vol. 48(2), pages 217-28, June.
    6. Friedman, David A. & Waldfogel, Joel, 1995. "The Administrative and Compliance Cost of Manual Highway Toll Collection: Evidence From Massachusetts and New Jersey," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(2), pages 217-228, June.
    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. Sheu, Jiuh-Biing & Yang, Hai, 2008. "An integrated toll and ramp control methodology for dynamic freeway congestion management," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(16), pages 4327-4348.
    2. 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.
    3. 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.
    4. Yuan, Naitong & Ma, Minghui & Liang, Shidong & Wang, Wenjie & Zhang, Hu, 2022. "Optimal control method of freeway based on tollbooths lane configuration and variable speed limit control," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).
    5. 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.
    6. Ioannis-Dimosthenis Ramandanis & Ioannis Politis & Socrates Basbas, 2020. "Assessing the Environmental and Economic Footprint of Electronic Toll Collection Lanes: A Simulation Study," Sustainability, MDPI, vol. 12(22), pages 1-25, November.

    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. Levinson, David & Chang, Elva, 2000. "Deploying Electronic Tolls," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt234972cq, Institute of Transportation Studies, UC Berkeley.
    2. Kang, Seungmin & Gillen, David, 1999. "Assessing the Benefits and Costs of Intelligent Tranportation Systems: Ramp Meters," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt75z454gm, Institute of Transportation Studies, UC Berkeley.
    3. Dahlgren, Joy & Khattak, Asad & McDonough, Patrick & Banerjee, Ipsita & Orrick, Phyllis & Sharafsaleh, Ashkan, 2004. "ITS Decision Enhancements: Developing Case-Based Reasoning and Expert Systems and Incorporating New Material," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt9242q08h, Institute of Transportation Studies, UC Berkeley.
    4. Vaillancourt, François, 1999. "Les coûts de conformité à la fiscalité des firmes et des individus : une recension des écrits," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 215-237, mars-juin.
    5. McCann, Laura M.J. & Easter, K. William, 1998. "Estimating Transaction Costs Of Alternative Policies To Reduce Phosphorous Pollution In The Minnesota River," Staff Papers 13919, University of Minnesota, Department of Applied Economics.
    6. Forkenbrock, David J., 1999. "External costs of intercity truck freight transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 505-526.
    7. Clark, William A. V. & Huang, Youqin & Withers, Suzanne, 2003. "Does commuting distance matter?: Commuting tolerance and residential change," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 199-221, March.
    8. Parry, Ian W. H., 2002. "Funding transportation spending in metropolitan Washington, DC: the costs of alternative revenue sources," Journal of Urban Economics, Elsevier, vol. 52(2), pages 362-390, September.
    9. Ian W. H. Parry & Antonio Bento, 2001. "Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    10. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
    11. McArthur, David Philip & Kleppe, Gisle & Thorsen, Inge & Ubøe, Jan, 2010. "The impact of pecuniary costs on commuting flows," Discussion Papers 2010/4, Norwegian School of Economics, Department of Business and Management Science.
    12. Caplan, Arthur J. & Acharya, Ramjee, 2019. "Optimal vehicle use in the presence of episodic mobile-source air pollution," Resource and Energy Economics, Elsevier, vol. 57(C), pages 185-204.
    13. Kazimi, Camilla, 1997. "Evaluating the Environmental Impact of Alternative-Fuel Vehicles," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 163-185, June.
    14. Byers, Steven & Cutler, Harvey & Davies, Stephen P., 2004. "Estimating Costs and Benefits of Economic Growth: A CGE-Based Study of Tax Incentives in a Rapidly Growing Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-20.
    15. Harrington, Winston & McConnell, Virginia & Alberini, Anna, 1998. "Fleet Turnover and Old Car Scrap Policies," RFF Working Paper Series dp-98-23, Resources for the Future.
    16. Mark Delucchi & Don McCubbin, 2011. "External Costs of Transport in the United States," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 15, Edward Elgar Publishing.
    17. Yao Wu & David Levinson, 2005. "The Rational Locator Reexamined," Working Papers 200503, University of Minnesota: Nexus Research Group.
    18. Bart Jourquin, 2004. "Estimation de l'impact de l'internalisation des coûts externes du trafic de fret interurbain en Belgique," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 77-87.
    19. Parry, Ian, 2001. "How Should Metropolitan Washington, D.C., Finance Its Transportation Deficit?," RFF Working Paper Series dp-01-12, Resources for the Future.
    20. Parry, Ian W.H., 2001. "Comparing the Marginal Excess Burden of Labor, Petrol, Cigarette, and Alcohol Taxes: An Application to the United Kingdom," Discussion Papers 10860, Resources for the Future.

    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D10 - Microeconomics - - Household Behavior - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    Statistics

    Access and download statistics

    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:nex:wpaper:etc. 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: David Levinson (email available below). General contact details of provider: https://edirc.repec.org/data/nexmnus.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.