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Estimating congestion toll by using traffic count data -- Singapore's area licensing scheme

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  • Z.F. Li, Michael

Abstract

There are many studies on the Area Licensing Scheme in Singapore. One of the debatable issues is whether or not the congestion toll of $3 is too high. The main objective of this paper is to develop a simple method for estimating the congestion toll by directly using the commonly available traffic count data. In our sensitivity analysis, we use three different scenarios on the choice of the value of travel time savings and four different measures of average wage rates (the national average wage rate the average wage rate for car owners with or without taking into consideration of employment benefits, and the average wage rate per car derived from the average occupancy per car). The sensitivity analyses led to a general conclusion that by 1990, the $3 fee was not too high. We also highlight the fact that it is possible to iterate to the optimal congestion toll by comparing the theoretical congestion toll with the actual toll even when the demand curve is unknown. ©

Suggested Citation

  • Z.F. Li, Michael, 1999. "Estimating congestion toll by using traffic count data -- Singapore's area licensing scheme," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 35(1), pages 1-10, March.
  • Handle: RePEc:eee:transe:v:35:y:1999:i:1:p:1-10
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    Cited by:

    1. Sheu, Jiuh-Biing & Yang, Hai, 2008. "An integrated toll and ramp control methodology for dynamic freeway congestion management," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(16), pages 4327-4348.
    2. Michael Z. F. Li, 2008. "A Generic Characterization of Equilibrium Speed-Flow Curves," Transportation Science, INFORMS, vol. 42(2), pages 220-235, May.
    3. Koh, Winston T. H., 2003. "Control of vehicle ownership and market competition: theory and Singapore's experience with the vehicle quota system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(9), pages 749-770, November.

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