IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v42y2008i2p376-391.html
   My bibliography  Save this article

Time-dependent transport network improvement and tolling strategies

Author

Listed:
  • Szeto, W.Y.
  • Lo, Hong K.

Abstract

In times of constrained resources, the government has three strategies, among others, to improve the transportation network over the planning horizon without relying on public expenditures to finance these improvements. The first is the government-as-the-provider strategy where the government acts as the toll road operator who builds the infrastructure and collects enough tolls to maximize social surplus. The second is that the private sector acts as a monopoly, who builds all the toll roads based on the build-operate-transfer (BOT) scheme. The third is the competitive market strategy, in which the government allows multiple operators to build different toll roads and collect tolls in a competitive manner. Which strategy is the best To answer this question, this paper develops appropriate time-dependent network design models for each of these strategies, and examines the performances of these strategies in terms of consumer surplus, travel cost, social surplus, and profit over the planning horizon through numerical examples. A proof is given to point out that the government-as-the-provider strategy is the best in terms of social efficiency under some mild assumptions. This paper also discusses the practical and policy aspects of these strategies and the possible need of government regulations to constrain the design and management of BOT projects.

Suggested Citation

  • Szeto, W.Y. & Lo, Hong K., 2008. "Time-dependent transport network improvement and tolling strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 376-391, February.
    • Handle: RePEc:eee:transa:v:42:y:2008:i:2:p:376-391
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(07)00093-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Zhang, Rong & Verhoef, Erik T., 2006. "A monopolistic market for advanced traveller information systems and road use efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(5), pages 424-443, June.
    2. McHardy, Jolian & Trotter, Stephen, 2006. "Competition and deregulation: Do air passengers get the benefits?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 74-93, January.
    3. Chen, Anthony & Subprasom, Kitti, 2007. "Analysis of regulation and policy of private toll roads in a build-operate-transfer scheme under demand uncertainty," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 537-558, July.
    4. Meng, Q. & Yang, H. & Bell, M. G. H., 2001. "An equivalent continuously differentiable model and a locally convergent algorithm for the continuous network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 35(1), pages 83-105, January.
    5. Boyce, D. E. & Janson, B. N., 1980. "A discrete transportation network design problem with combined trip distribution and assignment," Transportation Research Part B: Methodological, Elsevier, vol. 14(1-2), pages 147-154.
    6. Anguera, Ricard, 2006. "The Channel Tunnel--an ex post economic evaluation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 291-315, May.
    7. Hong K. Lo & W. Y. Szeto, 2004. "Planning transport network improvements over time," Chapters, in: Der-Horng Lee (ed.), Urban and Regional Transportation Modeling, chapter 9, Edward Elgar Publishing.
    8. Szeto, W.Y. & Lo, Hong K., 2006. "Transportation network improvement and tolling strategies: The issue of intergeneration equity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(3), pages 227-243, March.
    9. Han, Deren & Lo, Hong K., 2004. "Solving non-additive traffic assignment problems: A descent method for co-coercive variational inequalities," European Journal of Operational Research, Elsevier, vol. 159(3), pages 529-544, December.
    10. Friesz, Terry L. & Anandalingam, G. & Mehta, Nihal J. & Nam, Keesung & Shah, Samir J. & Tobin, Roger L., 1993. "The multiobjective equilibrium network design problem revisited: A simulated annealing approach," European Journal of Operational Research, Elsevier, vol. 65(1), pages 44-57, February.
    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. Farahani, Reza Zanjirani & Miandoabchi, Elnaz & Szeto, W.Y. & Rashidi, Hannaneh, 2013. "A review of urban transportation network design problems," European Journal of Operational Research, Elsevier, vol. 229(2), pages 281-302.
    2. W. Szeto & Y. Jiang & D. Wang & A. Sumalee, 2015. "A Sustainable Road Network Design Problem with Land Use Transportation Interaction over Time," Networks and Spatial Economics, Springer, vol. 15(3), pages 791-822, September.
    3. Lo, Hong K. & Szeto, W.Y., 2009. "Time-dependent transport network design under cost-recovery," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 142-158, January.
    4. Szeto, W.Y. & Lo, Hong K., 2006. "Transportation network improvement and tolling strategies: The issue of intergeneration equity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(3), pages 227-243, March.
    5. Elnaz Miandoabchi & Reza Farahani & W. Szeto, 2012. "Bi-objective bimodal urban road network design using hybrid metaheuristics," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(4), pages 583-621, December.
    6. Hosseininasab, Seyyed-Mohammadreza & Shetab-Boushehri, Seyyed-Nader, 2015. "Integration of selecting and scheduling urban road construction projects as a time-dependent discrete network design problem," European Journal of Operational Research, Elsevier, vol. 246(3), pages 762-771.
    7. Hosseininasab, Seyyed-Mohammadreza & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza & Karimi, Hadi, 2018. "A multi-objective integrated model for selecting, scheduling, and budgeting road construction projects," European Journal of Operational Research, Elsevier, vol. 271(1), pages 262-277.
    8. Chung, Jin-Hyuk & Bae, Yun Kyung & Kim, Jinhee, 2016. "Optimal sustainable road plans using multi-objective optimization approach," Transport Policy, Elsevier, vol. 49(C), pages 105-113.
    9. Wang, Yu & Liu, Haoxiang & Fan, Yinchao & Ding, Jianxun & Long, Jiancheng, 2022. "Large-scale multimodal transportation network models and algorithms-Part II: Network capacity and network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    10. Elnaz Miandoabchi & Reza Farahani & Wout Dullaert & W. Szeto, 2012. "Hybrid Evolutionary Metaheuristics for Concurrent Multi-Objective Design of Urban Road and Public Transit Networks," Networks and Spatial Economics, Springer, vol. 12(3), pages 441-480, September.
    11. Gallo, Mariano & D'Acierno, Luca & Montella, Bruno, 2010. "A meta-heuristic approach for solving the Urban Network Design Problem," European Journal of Operational Research, Elsevier, vol. 201(1), pages 144-157, February.
    12. Enrique Fernández L., J. & de Cea Ch., Joaquin & Malbran, R. Henry, 2008. "Demand responsive urban public transport system design: Methodology and application," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(7), pages 951-972, August.
    13. Karimi Dehnavi, Hadi & Rezvan, Mohammad Taghi & Shirmohammadli, Abdolmatin & Vallée, Dirk, 2013. "A solution for urban road selection and construction problem using simulation and goal programming—Case study of the city of Isfahan," Transport Policy, Elsevier, vol. 29(C), pages 46-53.
    14. Bastiaan Possel & Luc J. J. Wismans & Eric C. Berkum & Michiel C. J. Bliemer, 2018. "The multi-objective network design problem using minimizing externalities as objectives: comparison of a genetic algorithm and simulated annealing framework," Transportation, Springer, vol. 45(2), pages 545-572, March.
    15. Meng, Qiang & Yang, Hai, 2002. "Benefit distribution and equity in road network design," Transportation Research Part B: Methodological, Elsevier, vol. 36(1), pages 19-35, January.
    16. Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    17. Wang, Guangmin & Xu, Meng & Grant-Muller, Susan & Gao, Zaihan, 2020. "Combination of tradable credit scheme and link capacity improvement to balance economic growth and environmental management in sustainable-oriented transport development: A bi-objective bi-level progr," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 459-471.
    18. Meng, Q. & Yang, H. & Bell, M. G. H., 2001. "An equivalent continuously differentiable model and a locally convergent algorithm for the continuous network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 35(1), pages 83-105, January.
    19. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    20. Karsu, Özlem & Morton, Alec, 2015. "Inequity averse optimization in operational research," European Journal of Operational Research, Elsevier, vol. 245(2), pages 343-359.

    More about this item

    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:transa:v:42:y:2008:i:2:p:376-391. 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/547/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.