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Pareto-improving congestion pricing and revenue refunding with multiple user classes

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Listed:
  • Guo, Xiaolei
  • Yang, Hai

Abstract

This study investigates Pareto-improving congestion pricing and revenue refunding schemes in general transportation networks, which make every road user better off as compared with the situation without congestion pricing. We consider user heterogeneity in value of time (VOT) by adopting a multiclass user model with fixed origin-destination (OD) demands. We first prove that an OD and class-based Pareto-improving refunding scheme exists if and only if the total system monetary travel disutility is reduced. In view of the practical difficulty in identifying individual user's VOT, we further investigate class-anonymous refunding schemes that give the same amount of refund to all user classes traveling between the same OD pair regardless of their VOTs. We establish a sufficient condition for the existence of such OD-specific but class-anonymous Pareto-improving refunding schemes, which needs information only on the average toll paid and average travel time for trips between each OD pair.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transb:v:44:y::i:8-9:p:972-982
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    References listed on IDEAS

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    1. John Geanakoplos & H M Polemchakis, 2008. "Pareto Improving Taxes," Levine's Working Paper Archive 122247000000002219, David K. Levine.
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    9. Nakamura, Katsuhiko & Kockelman, Kara Maria, 2002. "Congestion pricing and roadspace rationing: an application to the San Francisco Bay Bridge corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(5), pages 403-417, June.
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    Citations

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    Cited by:

    1. Zhu, Shanjiang & Du, Longyuan & Zhang, Lei, 2013. "Rationing and pricing strategies for congestion mitigation: Behavioral theory, econometric model, and application in Beijing," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 210-224.
    2. 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.
    3. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    4. repec:eee:transb:v:104:y:2017:i:c:p:272-289 is not listed on IDEAS
    5. Wu, Di & Yin, Yafeng & Lawphongpanich, Siriphong & Yang, Hai, 2012. "Design of more equitable congestion pricing and tradable credit schemes for multimodal transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1273-1287.
    6. Tan, Zhijia & Yang, Hai, 2012. "The impact of user heterogeneity on road franchising," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 958-975.
    7. 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.
    8. repec:kap:netspa:v:17:y:2017:i:3:d:10.1007_s11067-017-9340-7 is not listed on IDEAS
    9. Wang, Xiaolei & Ye, Hongbo & Yang, Hai, 2015. "Decentralizing Pareto-efficient network flow/speed patterns with hybrid schemes of speed limit and road pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 51-64.
    10. Wang, Xiaolei & Yang, Hai & Zhu, Daoli & Li, Changmin, 2012. "Tradable travel credits for congestion management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 426-437.
    11. Tan, Zhijia & Yang, Hai & Guo, Renyong, 2014. "Pareto efficiency of reliability-based traffic equilibria and risk-taking behavior of travelers," Transportation Research Part B: Methodological, Elsevier, vol. 66(C), pages 16-31.
    12. 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.
    13. repec:eee:transb:v:110:y:2018:i:c:p:122-136 is not listed on IDEAS
    14. repec:eee:transb:v:102:y:2017:i:c:p:105-123 is not listed on IDEAS
    15. repec:eee:transb:v:110:y:2018:i:c:p:1-25 is not listed on IDEAS

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