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Social welfare analysis of HOV to HOT conversion

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  • M Rouhani, Omid

Abstract

In this article, I will examine the social welfare effects of implementing High Occupancy Toll (HOT) lanes, and Managed Lanes in general. HOT lanes, in contrast to existing general purpose (GP) lanes, allow motorists to use these express lanes if they either pay a toll or have a certain minimum number of occupants in their vehicle. HOT lanes are often implemented by either converting existing High Occupancy Vehicle (HOV) lanes to HOT lanes or by constructing new managed lanes (MLs) in the median strip of an existing highway. They offer two major benefits over HOV lanes: (i) mitigating inefficiencies arising from the underutilization of HOV and GP lanes; and (ii) generating new revenue while preserving user satisfaction. Despite such potential benefits from HOT lane conversions and ML adoption, a comprehensive study rigorously estimating social welfare benefits and costs has not yet been undertaken. This paper reviews and provides a guideline for HOV to HOT lane conversions, form the social welfare perspective.

Suggested Citation

  • M Rouhani, Omid, 2016. "Social welfare analysis of HOV to HOT conversion," MPRA Paper 75816, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75816
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    File URL: https://mpra.ub.uni-muenchen.de/75816/1/MPRA_paper_75816.pdf
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    References listed on IDEAS

    as
    1. Konishi, Hideo & Mun, Se-il, 2010. "Carpooling and congestion pricing: HOV and HOT lanes," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 173-186, July.
    2. Safirova, Elena & Gillingham, Kenneth & Parry, Ian & Nelson, Peter & Harrington, Winston & Mason, David, 2004. "8. Welfare And Distributional Effects Of Road Pricing Schemes For Metropolitan Washington Dc," Research in Transportation Economics, Elsevier, vol. 9(1), pages 179-206, January.
    3. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    4. Rouhani, Omid M., 2010. "Gas Consumption Information: A Substitute for Congestion Pricing?," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207246, Transportation Research Forum.
    5. Jang, Kitae & Chung, Koohong & Yeo, Hwasoo, 2014. "A dynamic pricing strategy for high occupancy toll lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 69-80.
    6. Poorzahedy, Hossain & Rouhani, Omid M., 2007. "Hybrid meta-heuristic algorithms for solving network design problem," European Journal of Operational Research, Elsevier, vol. 182(2), pages 578-596, October.
    7. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    8. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    9. Rouhani, Omid M. & Oliver Gao, H. & Richard Geddes, R., 2015. "Policy lessons for regulating public–private partnership tolling schemes in urban environments," Transport Policy, Elsevier, vol. 41(C), pages 68-79.
    10. Rouhani, Omid M. & Oliver Gao, H., 2014. "An advanced traveler general information system for Fresno, California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 254-267.
    11. Kim, Eugene J., 2000. "HOT Lanes: An Evolution of Costs, Benefits and Performance," University of California Transportation Center, Working Papers qt8834h6m9, University of California Transportation Center.
    12. Rouhani, Omid M. & Niemeier, Debbie & Knittel, Christopher R. & Madani, Kaveh, 2013. "Integrated modeling framework for leasing urban roads: A case study of Fresno, California," Transportation Research Part B: Methodological, Elsevier, vol. 48(C), pages 17-30.
    13. Laval, Jorge A. & Cho, Hyun W. & Muñoz, Juan C. & Yin, Yafeng, 2015. "Real-time congestion pricing strategies for toll facilities," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 19-31.
    14. Ali Mirchi & Saeed Hadian & Kaveh Madani & Omid M. Rouhani & Azadeh M. Rouhani, 2012. "World Energy Balance Outlook and OPEC Production Capacity: Implications for Global Oil Security," Energies, MDPI, vol. 5(8), pages 1-26, July.
    15. Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
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    More about this item

    Keywords

    Value of time; Road pricing; Congestion pricing; Optimal toll; Profits; System-wide costs.;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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