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An integrated model for road capacity choice and cordon toll pricing

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  • Guo, Qianwen
  • Sun, Yanshuo
  • Li, Zhi-Chun
  • Li, Zhongfei

Abstract

In this paper, an analytical model is proposed to address road capacity choice and cordon toll pricing issues for an urban transportation corridor. In the proposed model, the road capacity, toll location and level are considered as decision variables, and the effects of self-financing and subsidy constraints on these variables are explored. It has been shown in the numerical studies that the self-financing requirement can lead to a decreased social welfare, and subsidies in certain ranges are welfare-improving. Results also show that subsidy increments yield disproportionately smaller welfare improvements, which is a sign of low efficiency.

Suggested Citation

  • Guo, Qianwen & Sun, Yanshuo & Li, Zhi-Chun & Li, Zhongfei, 2017. "An integrated model for road capacity choice and cordon toll pricing," Research in Transportation Economics, Elsevier, vol. 62(C), pages 68-79.
    • Handle: RePEc:eee:retrec:v:62:y:2017:i:c:p:68-79
    DOI: 10.1016/j.retrec.2017.04.002
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    Cited by:

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    2. Lin, Hong-Zhi & Zhang, Yongping, 2023. "Scientific planning of urban cordon sanitaire for desired queuing time," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    3. Sulikova, Simona & van den Bijgaart, Inge & Klenert, David & Mattauch, Linus, 2020. "Optimal fuel taxation with suboptimal health choices," Working Papers in Economics 794, University of Gothenburg, Department of Economics.

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    More about this item

    Keywords

    Cordon toll pricing; Road capacity; Social welfare; Self-financing;
    All these keywords.

    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
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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