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Optimizing the benefits of urban road user charging

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  • Hyman, Geoffrey
  • Mayhew, Les

Abstract

Traffic congestion is a feature of most modern cities but attempts to control it or limit its effects have met with only modest success. There is significant and continuing interest in the concept of charging city vehicle users, although apart from the use of parking charges actual operational schemes are few and far between. In this paper, we compare three alternative charging policies using a simplified model of travel demand and supply, which we combine with cost benefit techniques. The charging policies are area-based charging in which users pay to locate in or enter an area, terminal-charging based on supplementary parking fees in residential and non-residential locations and distance-based charging which is a charge related to how far users travel. The model allows for behavioural effects resulting from trip diversion and demand suppression, as well as capacity restraint (speed-flow feedback effects based on limited route capacity). In the case study, we parameterize the model using data and geographical dimensions based on London. We show that area based charging delivers the least benefits whilst a hybrid policy based on terminal and distance-based charges delivers the most. Because it is of topical interest, we compare our results and predictions with the Mayor's strategy for London, which is an area-based scheme. We conclude that the revenue generated using a hybrid policy would be as great as for an area based scheme whilst at the same time delivering substantially greater benefits to road users in terms of travel time and other savings.

Suggested Citation

  • Hyman, Geoffrey & Mayhew, Les, 2002. "Optimizing the benefits of urban road user charging," Transport Policy, Elsevier, vol. 9(3), pages 189-207, July.
  • Handle: RePEc:eee:trapol:v:9:y:2002:i:3:p:189-207
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    References listed on IDEAS

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    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. Geoffrey Hyman & Les Mayhew, 2000. "The properties of route catchments in orbital - radial cities," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 27(6), pages 843-863, November.
    3. Ben Still & David Simmonds, 2000. "Parking restraint policy and urban vitality," Transport Reviews, Taylor & Francis Journals, vol. 20(3), pages 291-316, January.
    4. Dickerson, Andrew & Peirson, John & Vickerman, Roger, 2000. "Road Accidents and Traffic Flows: An Econometric Investigation," Economica, London School of Economics and Political Science, vol. 67(265), pages 101-121, February.
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    Cited by:

    1. Major, Iván, 2004. "A korlátozó szabályozástól az ösztönző szabályozásig. A közlekedés szabályozása az Európai Unióban és Magyarországon
      [From restricting regulation to incentive regulation. Transport regulation in th
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 501-529.
    2. Agachai Sumalee & Simon Shepherd & Anthony May, 2009. "Road user charging design: dealing with multi-objectives and constraints," Transportation, Springer, vol. 36(2), pages 167-186, March.
    3. Stopher, Peter R., 2004. "Reducing road congestion: a reality check," Transport Policy, Elsevier, vol. 11(2), pages 117-131, April.
    4. Barter, Paul A., 2005. "A vehicle quota integrated with road usage pricing: A mechanism to complete the phase-out of high fixed vehicle taxes in Singapore," Transport Policy, Elsevier, vol. 12(6), pages 525-536, November.
    5. de Palma, André & Kilani, Moez & Lindsey, Robin, 2005. "Congestion pricing on a road network: A study using the dynamic equilibrium simulator METROPOLIS," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 588-611.
    6. Hyman, G. & Mayhew, L., 2008. "Toll optimisation on river crossings serving large cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 28-47, January.
    7. Sumalee, Agachai & May, Tony & Shepherd, Simon, 2005. "Comparison of judgmental and optimal road pricing cordons," Transport Policy, Elsevier, vol. 12(5), pages 384-390, September.
    8. Sabounchi, Nasim S. & Triantis, Konstantinos P. & Sarangi, Sudipta & Liu, Shiyong, 2014. "Dynamic simulation modeling and policy analysis of an area-based congestion pricing scheme for a transportation socioeconomic system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 357-383.
    9. D'Acierno, Luca & Gallo, Mariano & Montella, Bruno, 2006. "Optimisation models for the urban parking pricing problem," Transport Policy, Elsevier, vol. 13(1), pages 34-48, January.

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