IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v90y2021ics0739885921001049.html
   My bibliography  Save this article

Toll and subsidy for freight vehicles on urban roads: A policy decision for City Logistics

Author

Listed:
  • Perera, Loshaka
  • Thompson, Russell G.
  • Wu, Wenyan

Abstract

Toll roads constructed under public-private-partnerships (PPP) are very common around the world. Due to the high capital cost invested and high risks associated with subsequent returns, investors are concerned about future revenue. Charging high tolls from freight vehicles is a common practice, especially in urban areas. As a result, freight vehicles tend to divert from freeways (toll roads) to highways and arterial roads to minimize their costs, but this may cause more damage to infrastructure and environment, thus more costs for society and the environment. Consequently, developing an effective solution for toll charges for freight vehicles is a complex City Logistics problem involving multiple stakeholders with multi-objectives.

Suggested Citation

  • Perera, Loshaka & Thompson, Russell G. & Wu, Wenyan, 2021. "Toll and subsidy for freight vehicles on urban roads: A policy decision for City Logistics," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885921001049
    DOI: 10.1016/j.retrec.2021.101132
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885921001049
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2021.101132?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Phang, Sock-Yong & Toh, Rex S., 1997. "From manual to electronic road congestion pricing: The Singapore experience and experiment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(2), pages 97-106, June.
    2. Malina, Christiane & Scheffler, Frauke, 2015. "The impact of Low Emission Zones on particulate matter concentration and public health," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 372-385.
    3. Yang, Hai & Meng, Qiang, 2000. "Highway pricing and capacity choice in a road network under a build-operate-transfer scheme," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(3), pages 207-222, April.
    4. Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking," Journal of Public Economics, Elsevier, vol. 105(C), pages 106-115.
    5. Jesus Gonzalez-Feliu & Pierre Basck & Eleonora Morganti, 2013. "Urban logistics solutions and financing mechanisms: a scenario assessment analysis," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 54, pages 1-11.
    6. Adler, Jeffrey L. & Cetin, Mecit, 2001. "A direct redistribution model of congestion pricing," Transportation Research Part B: Methodological, Elsevier, vol. 35(5), pages 447-460, June.
    7. Kockelman, Kara M. & Kalmanje, Sukumar, 2005. "Credit-based congestion pricing: a policy proposal and the public's response," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 671-690.
    8. Creutzig, Felix & McGlynn, Emily & Minx, Jan & Edenhofer, Ottmar, 2011. "Climate policies for road transport revisited (I): Evaluation of the current framework," Energy Policy, Elsevier, vol. 39(5), pages 2396-2406, May.
    9. Maria Lindholm, 2013. "Urban freight transport from a local authority perspective – a literature review," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 54, pages 1-3.
    10. Dial, Robert B., 1999. "Minimal-revenue congestion pricing part I: A fast algorithm for the single-origin case," Transportation Research Part B: Methodological, Elsevier, vol. 33(3), pages 189-202, April.
    11. 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.
    12. 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.
    13. Martine Mostert & Sabine Limbourg, 2016. "External Costs as Competitiveness Factors for Freight Transport — A State of the Art," Transport Reviews, Taylor & Francis Journals, vol. 36(6), pages 692-712, November.
    14. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
    15. Cherie Lu & Peter Morrell, 2006. "Determination and Applications of Environmental Costs at Different Sized Airports – Aircraft Noise and Engine Emissions," Transportation, Springer, vol. 33(1), pages 45-61, January.
    16. Martini, Gianmaria & Manello, Alessandro & Scotti, Davide, 2013. "The influence of fleet mix, ownership and LCCs on airports’ technical/environmental efficiency," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 37-52.
    17. Flachsland, Christian & Brunner, Steffen & Edenhofer, Ottmar & Creutzig, Felix, 2011. "Climate policies for road transport revisited (II): Closing the policy gap with cap-and-trade," Energy Policy, Elsevier, vol. 39(4), pages 2100-2110, April.
    18. Sandrine Ville & Jesus Gonzalez-Feliu & Laetitia Dablanc, 2013. "The Limits of Public Policy Intervention in Urban Logistics: Lessons from Vicenza (Italy)," European Planning Studies, Taylor & Francis Journals, vol. 21(10), pages 1528-1541, October.
    19. Abiye Tob-Ogu & Niraj Kumar & John Cullen & Erica E. F. Ballantyne, 2018. "Sustainability Intervention Mechanisms for Managing Road Freight Transport Externalities: A Systematic Literature Review," Sustainability, MDPI, vol. 10(6), pages 1-18, June.
    20. Chen, Linxi & Yang, Hai, 2012. "Managing congestion and emissions in road networks with tolls and rebates," Transportation Research Part B: Methodological, Elsevier, vol. 46(8), pages 933-948.
    21. Demir, Emrah & Huang, Yuan & Scholts, Sebastiaan & Van Woensel, Tom, 2015. "A selected review on the negative externalities of the freight transportation: Modeling and pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 95-114.
    22. Alex Anas & Robin Lindsey, 2011. "Reducing Urban Road Transportation Externalities: Road Pricing in Theory and in Practice," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 66-88, Winter.
    23. Yang, Hai & Tang, Wilson H. & Man Cheung, Wing & Meng, Qiang, 2002. "Profitability and welfare gain of private toll roads in a network with heterogeneous users," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(6), pages 537-554, July.
    24. Dodoo, Nii Amoo & Thorpe, Neil, 2005. "A new approach for allocating pavement damage between heavy goods vehicles for road-user charging," Transport Policy, Elsevier, vol. 12(5), pages 419-430, September.
    25. Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking�," MPRA Paper 48433, University Library of Munich, Germany.
    26. Sathaye, Nakul & Horvath, Arpad & Madanat, Samer, 2010. "Unintended impacts of increased truck loads on pavement supply-chain emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(1), pages 1-15, January.
    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. Maren Schnieder & Chris Hinde & Andrew West, 2022. "Emission Estimation of On-Demand Meal Delivery Services Using a Macroscopic Simulation," IJERPH, MDPI, vol. 19(18), pages 1-17, September.
    2. Giacomo Lozzi & Gabriele Iannaccone & Ila Maltese & Valerio Gatta & Edoardo Marcucci & Riccardo Lozzi, 2022. "On-Demand Logistics: Solutions, Barriers, and Enablers," Sustainability, MDPI, vol. 14(15), pages 1-21, August.

    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. Tian, Li-Jun & Yang, Hai & Huang, Hai-Jun, 2013. "Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 54(C), pages 1-13.
    2. Yang Liu & Yu (Marco) Nie, 2017. "A Credit-Based Congestion Management Scheme in General Two-Mode Networks with Multiclass Users," Networks and Spatial Economics, Springer, vol. 17(3), pages 681-711, September.
    3. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Kockelman, Kara M. & Lemp, Jason D., 2011. "Anticipating new-highway impacts: Opportunities for welfare analysis and credit-based congestion pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 825-838, October.
    5. Vandyck, Toon & Rutherford, Thomas F., 2018. "Regional labor markets, commuting, and the economic impact of road pricing," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 217-236.
    6. Zimmer, Anne & Koch, Nicolas, 2017. "Fuel consumption dynamics in Europe: Tax reform implications for air pollution and carbon emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 22-50.
    7. Xiao, Ling-Ling & Liu, Tian-Liang & Huang, Hai-Jun, 2016. "On the morning commute problem with carpooling behavior under parking space constraint," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 383-407.
    8. Rouhani, Omid M. & Geddes, R. Richard & Gao, H. Oliver & Bel, Germà, 2016. "Social welfare analysis of investment public–private partnership approaches for transportation projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 86-103.
    9. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    10. Guo, Xiaolei & Yang, Hai, 2010. "Pareto-improving congestion pricing and revenue refunding with multiple user classes," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 972-982, September.
    11. 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.
    12. Liu, Yang & Nie, Yu (Marco), 2011. "Morning commute problem considering route choice, user heterogeneity and alternative system optima," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 619-642.
    13. 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.
    14. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    15. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    16. Bernardo, Valeria & Fageda, Xavier & Flores-Fillol, Ricardo, 2021. "Pollution and congestion in urban areas: The effects of low emission zones," Economics of Transportation, Elsevier, vol. 26.
    17. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    18. Nie, Yu (Marco) & Liu, Yang, 2010. "Existence of self-financing and Pareto-improving congestion pricing: Impact of value of time distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(1), pages 39-51, January.
    19. Li, Tianshu & Song, Shunfeng & Yang, Yanmin, 2022. "Driving restrictions, traffic speeds and carbon emissions: Evidence from high-frequency data," China Economic Review, Elsevier, vol. 74(C).
    20. Francis Ostermeijer & Hans RA Koster & Leonardo Nunes & Jos van Ommeren, 2021. "Citywide parking policy and traffic: Evidence from Amsterdam," Tinbergen Institute Discussion Papers 21-015/VIII, Tinbergen Institute.

    More about this item

    Keywords

    Toll; Subsidy; Externalities; Heavy vehicles; Environmental cost; Social cost; City logistics;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    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:eee:retrec:v:90:y:2021:i:c:s0739885921001049. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    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.