IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v48y2013icp17-30.html
   My bibliography  Save this article

Integrated modeling framework for leasing urban roads: A case study of Fresno, California

Author

Listed:
  • Rouhani, Omid M.
  • Niemeier, Debbie
  • Knittel, Christopher R.
  • Madani, Kaveh

Abstract

Increasing private sector involvement in transportation services has significant implications for the management of road networks. This paper examines a concession model’s effects on a road network in the mid-sized city of Fresno, California. Using the existing transportation planning models of Fresno, we examine the effects of privatization on a number of typical system performance measures including total travel time and vehicle miles traveled (VMT), the possibility of including arterials, and the differences between social cost prices and profit maximizing prices. Some interesting insights emerge from our analysis: (1) roads cannot be considered as isolated elements in a concession model for a road network; (2) roads can function as complements at some levels of demand and become substitutes at other levels; (3) policy makers/officials should consider privatizing/pricing arterials along with privatizing highways; (4) temporally flexible but limited price schedule regulations should be part of leasing agreements; and (5) non-restricted pricing may actually worsen system performance, while limited pricing can raise enormous profits as well as improve system performance.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transb:v:48:y:2013:i:c:p:17-30
    DOI: 10.1016/j.trb.2012.10.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261512001397
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2012.10.005?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. de Palma, Andre & Lindsey, Robin, 2002. "Private roads, competition, and incentives to adopt time-based congestion tolling," Journal of Urban Economics, Elsevier, vol. 52(2), pages 217-241, September.
    2. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2003. "Privatizing Highways in Latin America: Fixing What Went Wrong," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2003), pages 129-164, August.
    3. AndrÊ de Palma & Robin Lindsey, 2000. "Private toll roads: Competition under various ownership regimes," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(1), pages 13-35.
    4. Bonnafous, Alain, 2010. "Programming, optimal pricing and partnership contract for infrastructures in PPPs," Research in Transportation Economics, Elsevier, vol. 30(1), pages 15-22.
    5. Eduardo M.R.A. Engel & Ronald Fischer & Alexander Galetovic, 2003. "Privatizing Highways in Latin America: Is It Possible to Fix What Went Wrong?," Working Papers 866, Economic Growth Center, Yale University.
    6. Madani, Kaveh & Dinar, Ariel, 2012. "Non-cooperative institutions for sustainable common pool resource management: Application to groundwater," Ecological Economics, Elsevier, vol. 74(C), pages 34-45.
    7. Färe, Rolf & Grosskopf, Shawna & Hayes, Kathy J. & Margaritis, Dimitris, 2008. "Estimating demand with distance functions: Parameterization in the primal and dual," Journal of Econometrics, Elsevier, vol. 147(2), pages 266-274, December.
    8. Loukas Dimitriou & Theodore Tsekeris & Antony Stathopoulos, 2009. "Joint pricing and design of urban highways with spatial and user group heterogeneity," Netnomics, Springer, vol. 10(1), pages 141-160, April.
    9. Winston, Clifford & Yan, Jia, 2011. "Can privatization of U.S. highways improve motorists' welfare?," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 993-1005, August.
    10. 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.
    11. Chung, Demi & Hensher, David A. & Rose, John M., 2010. "Toward the betterment of risk allocation: Investigating risk perceptions of Australian stakeholder groups to public-private-partnership tollroad projects," Research in Transportation Economics, Elsevier, vol. 30(1), pages 43-58.
    12. Wang, Judith Y.T. & Lindsey, Robin & Yang, Hai, 2011. "Nonlinear pricing on private roads with congestion and toll collection costs," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 9-40, January.
    13. de Jong, Martin & Mu, Rui & Stead, Dominic & Ma, Yongchi & Xi, Bao, 2010. "Introducing public–private partnerships for metropolitan subways in China: what is the evidence?," Journal of Transport Geography, Elsevier, vol. 18(2), pages 301-313.
    14. Wu, Di & Yin, Yafeng & Yang, Hai, 2011. "The independence of volume-capacity ratio of private toll roads in general networks," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 96-101, January.
    15. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2006. "Privatizing Highways in the United States," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(1), pages 27-53, September.
    16. Anna Nagurney, 2000. "Sustainable Transportation Networks," Books, Edward Elgar Publishing, number 2069.
    17. Jean Magnan de Bornier, 1992. "The “Cournot-Bertrand Debate”: A Historical Perspective," History of Political Economy, Duke University Press, vol. 24(3), pages 623-656, Fall.
    18. 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.
    19. 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.
    20. de Palma, André & Kilani, Moez & Lindsey, Robin, 2007. "Maintenance, service quality and congestion pricing with competing roads," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 573-591, June.
    21. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
    22. Winkelman, Steve & Bishins, Allison & Kooshian, Chuck, 2010. "Planning for economic and environmental resilience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(8), pages 575-586, October.
    23. Evenhuis, Emil & Vickerman, Roger, 2010. "Transport pricing and Public-Private Partnerships in theory: Issues and Suggestions," Research in Transportation Economics, Elsevier, vol. 30(1), pages 6-14.
    24. Alexis Jacquemin, 1987. "The New Industrial Organization: Market Forces and Strategic Behavior," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600145, April.
    25. Khiabani, Nasser & Hasani, Karim, 2010. "Technical and allocative inefficiencies and factor elasticities of substitution: An analysis of energy waste in Iran's manufacturing," Energy Economics, Elsevier, vol. 32(5), pages 1182-1190, September.
    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. 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.
    2. M. Rouhani, Omid, 2015. "Revenue Risk Mitigation Options for Toll Roads," MPRA Paper 67662, University Library of Munich, Germany.
    3. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    4. Omid, M. Rouhani, 2013. "Queue Dissipation Shockwave Speed for Signalized Intersections," MPRA Paper 53161, University Library of Munich, Germany.
    5. Omid, M. Rouhani, 2013. "Modified RPS Calculator: Inputs, Updating Procedure, and Outputs," MPRA Paper 53679, University Library of Munich, Germany.
    6. M Rouhani, Omid, 2016. "Social welfare analysis of HOV to HOT conversion," MPRA Paper 75816, University Library of Munich, Germany.
    7. Rouhani, Omid M. & Niemeier, Debbie, 2014. "Flat versus spatially variable tolling: A case study in Fresno, California," Journal of Transport Geography, Elsevier, vol. 37(C), pages 10-18.
    8. Omid M. Rouhani & H. Oliver Gao, 2016. "Evaluating Various Road Ownership Structures and Potential Competition on an Urban Road Network," Networks and Spatial Economics, Springer, vol. 16(4), pages 1019-1042, December.
    9. Rouhani, M. Rouhani, 2018. "Financing Sustainability and Resiliency of Transportation Infrastructure in an Era of Fiscal Constraint," MPRA Paper 88504, University Library of Munich, Germany.
    10. Rouhani, Omid, 2021. "Transportation Project Evaluation Methods/Approaches- Version 2," MPRA Paper 105729, University Library of Munich, Germany.
    11. Rouhani, Omid M., 2013. "Queue Dissipation Shockwave Speed– A Signalized Intersection Case Study," 54th Annual Transportation Research Forum, Annapolis, Maryland, March 21-23, 2013 206954, Transportation Research Forum.
    12. Lucas Kruitwagen & Kaveh Madani & Ben Caldecott & Mark H. W. Workman, 2017. "Game theory and corporate governance: conditions for effective stewardship of companies exposed to climate change risks," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 7(1), pages 14-36, January.
    13. 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).
    14. 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.
    15. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    16. 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.
    17. Rouhani, Omid M. & Niemeier, Debbie & Gao, H. Oliver & Bel, Germà, 2016. "Cost-benefit analysis of various California renewable portfolio standard targets: Is a 33% RPS optimal?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1122-1132.
    18. Rouhani, Omid, 2017. "Manage energy/environmental footprints of travel: A proposed solution/methodology," MPRA Paper 83344, University Library of Munich, Germany.
    19. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    20. M. Rouhani, Omid, 2019. "Transportation Project Evaluation Methods/Approaches," MPRA Paper 91451, University Library of Munich, Germany.

    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. Fu, Xinying & van den Berg, Vincent A.C. & Verhoef, Erik T., 2018. "Private road supply in networks with heterogeneous users," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 430-443.
    2. Omid M. Rouhani & H. Oliver Gao, 2016. "Evaluating Various Road Ownership Structures and Potential Competition on an Urban Road Network," Networks and Spatial Economics, Springer, vol. 16(4), pages 1019-1042, December.
    3. Meng, Qiang & Lu, Zhaoyang, 2017. "Quantitative analyses of highway franchising under build-operate-transfer scheme: Critical review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 102(C), pages 105-123.
    4. Fu, Xinying & van den Berg, Vincent A.C. & Verhoef, Erik T., 2018. "Private road networks with uncertain demand," Research in Transportation Economics, Elsevier, vol. 70(C), pages 57-68.
    5. Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J. & Álvarez-SanJaime, Óscar, 2011. "Viability of new road infrastructure with heterogeneous users," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(5), pages 435-450, June.
    6. Rouhani, Omid M. & Niemeier, Debbie, 2014. "Flat versus spatially variable tolling: A case study in Fresno, California," Journal of Transport Geography, Elsevier, vol. 37(C), pages 10-18.
    7. 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.
    8. Winston, Clifford & Yan, Jia, 2011. "Can privatization of U.S. highways improve motorists' welfare?," Journal of Public Economics, Elsevier, vol. 95(7), pages 993-1005.
    9. André de Palma & Robin Lindsey & Fang Wu, 2008. "Private Operators and Time-of-Day Tolling on a Congested Road Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 397-433, September.
    10. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    11. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    12. Wang, Wei (Walker) & Jin, Xi & Tan, Zhijia & Sun, Huijun & Wu, Jianjun, 2022. "Modeling the effects of government subsidy and regulation on BOT transport project contract design within contractible service quality," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    13. Clifford Winston & Jia Yan, 2008. "US Highway Privatization and Heterogeneous Preferences," Working Papers 2008-20, School of Economic Sciences, Washington State University.
    14. Lei Zhang & David Levinson, 2006. "Economics of Road Network Ownership," Working Papers 200908, University of Minnesota: Nexus Research Group.
    15. 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.
    16. Lindsey, Robin, 2012. "Road pricing and investment," Economics of Transportation, Elsevier, vol. 1(1), pages 49-63.
    17. de Palma, André & Kilani, Moez & Lindsey, Robin, 2007. "Maintenance, service quality and congestion pricing with competing roads," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 573-591, June.
    18. Albalate, Daniel & Bel, Germà, 2009. "Regulating concessions of toll motorways: An empirical study on fixed vs. variable term contracts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 219-229, February.
    19. Lu, Zhaoyang & Meng, Qiang, 2023. "Effects of asymmetric investment cost information on revenue-compensated build-operate-transfer highway contracts," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 71-92.
    20. Loukas Dimitriou & Theodore Tsekeris & Antony Stathopoulos, 2009. "Joint pricing and design of urban highways with spatial and user group heterogeneity," Netnomics, Springer, vol. 10(1), pages 141-160, April.

    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:transb:v:48:y:2013:i:c:p:17-30. 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/548/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.