IDEAS home Printed from https://ideas.repec.org/a/kap/transp/v45y2018i2d10.1007_s11116-016-9742-2.html
   My bibliography  Save this article

Reducing traffic externalities by multiple-cordon pricing

Author

Listed:
  • Jyh-Fa Tsai

    (National Taipei University)

  • Shao-Yu Lu

    (CCIS Real Estate Joint Appraisers Firm)

Abstract

The second-best congestion pricing schemes including common optimum, one cordon, and multiple cordons schemes are compared with the first-best optimum pricing scheme. A cross-subsidy effect exists in these second-best pricing models. However, the scheme with more cordons will diminish the cross-subsidy and approach an efficient and equitable outcome. The relative efficiency of a cordon pricing scheme for the case of Taipei metropolis is very high. One single cordon yields excellent performance of 93% relative efficiency. There might be some factors causing the good results: the uncongested traffic condition, the linear unit distance cost in traffic flow forming a nonlinear cost function, and the trip demands with continuous space and the same destination (the central business district) in the network.

Suggested Citation

  • Jyh-Fa Tsai & Shao-Yu Lu, 2018. "Reducing traffic externalities by multiple-cordon pricing," Transportation, Springer, vol. 45(2), pages 597-622, March.
    • Handle: RePEc:kap:transp:v:45:y:2018:i:2:d:10.1007_s11116-016-9742-2
    DOI: 10.1007/s11116-016-9742-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11116-016-9742-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11116-016-9742-2?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. Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November.
    2. Bruno De Borger & Stef Proost (ed.), 2001. "Reforming Transport Pricing in the European Union," Books, Edward Elgar Publishing, number 1822.
    3. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    4. 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.
    5. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2005. "Optimal cordon pricing in a non-monocentric city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 723-736.
    6. Tsai, Jyh-Fa & Chu, Chih-Peng, 2010. "Analysis of the optimal length of road expansion - A case study of the Taipei metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(3), pages 147-158, March.
    7. André De Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the monocentric city: theory and application to Paris region," Recherches économiques de Louvain, De Boeck Université, vol. 77(2), pages 105-124.
    8. Maruyama, Takuya & Sumalee, Agachai, 2007. "Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 655-671, August.
    9. De Lara, Michel & de Palma, André & Kilani, Moez & Piperno, Serge, 2013. "Congestion pricing and long term urban form: Application to Paris region," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 282-295.
    10. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August.
    11. May, A. D. & Milne, D. S., 2000. "Effects of alternative road pricing systems on network performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(6), pages 407-436, August.
    12. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
    13. Li, Michael Z. F., 2002. "The role of speed-flow relationship in congestion pricing implementation with an application to Singapore," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 731-754, September.
    14. Tikoudis, Ioannis & Verhoef, Erik T. & van Ommeren, Jos N., 2015. "On revenue recycling and the welfare effects of second-best congestion pricing in a monocentric city," Journal of Urban Economics, Elsevier, vol. 89(C), pages 32-47.
    15. Dewees, Donald N, 1979. "Estimating the Time Costs of Highway Congestion," Econometrica, Econometric Society, vol. 47(6), pages 1499-1512, November.
    16. André de Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France," Post-Print hal-00348437, HAL.
    17. F. H. Knight, 1924. "Some Fallacies in the Interpretation of Social Cost," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 38(4), pages 582-606.
    18. Keeler, Theodore E & Small, Kenneth A, 1977. "Optimal Peak-Load Pricing, Investment, and Service Levels on Urban Expressways," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 1-25, February.
    19. Chu, Chih-Peng & Tsai, Jyh-Fa, 2008. "The optimal location and road pricing for an elevated road in a corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 842-856, June.
    20. Ho, H.W. & Wong, S.C. & Yang, Hai & Loo, Becky P.Y., 2005. "Cordon-based congestion pricing in a continuum traffic equilibrium system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 813-834.
    21. Erik Verhoef & Michiel C.J. Bliemer & Linda Steg & Bert van Wee (ed.), 2008. "Pricing in Road Transport," Books, Edward Elgar Publishing, number 4192.
    22. Zhang, Xiaoning & Yang, Hai, 2004. "The optimal cordon-based network congestion pricing problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 517-537, July.
    23. Akiyama Takamasa & Mun Se-Il & Okushima Masashi, 2004. "Second-Best Congestion Pricing in Urban Space: Cordon Pricing and Its Alternatives," Review of Network Economics, De Gruyter, vol. 3(4), pages 1-14, December.
    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. Tariq Munir & Hussein Dia & Hadi Ghaderi, 2021. "A Systematic Review of the Role of Road Network Pricing in Shaping Sustainable Cities: Lessons Learned and Opportunities for a Post-Pandemic World," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    2. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    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. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.
    3. Zhi-Chun Li & Qian-Wen Guo, 2017. "Optimal time for implementing cordon toll pricing scheme in a monocentric city," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 163-190, March.
    4. André de Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France," Post-Print hal-00348437, HAL.
    5. Zhi-Chun Li & Ya-Dong Wang & William Lam & Agachai Sumalee & Keechoo Choi, 2014. "Design of Sustainable Cordon Toll Pricing Schemes in a Monocentric City," Networks and Spatial Economics, Springer, vol. 14(2), pages 133-158, June.
    6. Chu, Chih-Peng & Tsai, Jyh-Fa, 2008. "The optimal location and road pricing for an elevated road in a corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 842-856, June.
    7. Guo, Qianwen & Sun, Yanshuo & Li, Zhi-Chun & Li, Zhongfei, 2017. "An integrated model for road capacity choice and cordon toll pricing," Research in Transportation Economics, Elsevier, vol. 62(C), pages 68-79.
    8. Tikoudis, Ioannis, 2023. "Revisiting the Pigouvian tax in urban roads: Housing supply restrictions, leaking profits and spatial inequality," Economics of Transportation, Elsevier, vol. 35(C).
    9. André De Palma & Moez Kilani & Michel de Lara & Serge Piperno, 2011. "Cordon pricing in the monocentric city: theory and application to Paris region," Recherches économiques de Louvain, De Boeck Université, vol. 77(2), pages 105-124.
    10. De Borger, Bruno & Russo, Antonio, 2018. "The political economy of cordon tolls," Journal of Urban Economics, Elsevier, vol. 105(C), pages 133-148.
    11. Azari, Kian Ahmadi & Arintono, Sulistyo & Hamid, Hussain & Davoodi, Seyed Rasoul, 2013. "Evaluation of demand for different trip purposes under various congestion pricing scenarios," Journal of Transport Geography, Elsevier, vol. 29(C), pages 43-51.
    12. Tsai, Jyh-Fa & Chu, Chih-Peng, 2010. "Analysis of the optimal length of road expansion - A case study of the Taipei metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(3), pages 147-158, March.
    13. Mahyar Amirgholy & Hojjat Rezaeestakhruie & Hossain Poorzahedy, 2015. "Multi-objective cordon price design to control long run adverse traffic effects in large urban areas," Netnomics, Springer, vol. 16(1), pages 1-52, August.
    14. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2005. "Optimal cordon pricing in a non-monocentric city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 723-736.
    15. Chen, Zhi & Wu, Wen-Xiang & Huang, Hai-Jun & Shang, Hua-Yan, 2022. "Modeling traffic dynamics in periphery-downtown urban networks combining Vickrey's theory with Macroscopic Fundamental Diagram: user equilibrium, system optimum, and cordon pricing," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 278-303.
    16. Brueckner, Jan K., 2014. "Cordon tolling in a city with congested bridges," Economics of Transportation, Elsevier, vol. 3(4), pages 235-242.
    17. Meng, Qiang & Liu, Zhiyuan & Wang, Shuaian, 2012. "Optimal distance tolls under congestion pricing and continuously distributed value of time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 937-957.
    18. Maruyama, Takuya & Sumalee, Agachai, 2007. "Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 655-671, August.
    19. Anas, Alex & Hiramatsu, Tomoru, 2013. "The economics of cordon tolling: General equilibrium and welfare analysis," Economics of Transportation, Elsevier, vol. 2(1), pages 18-37.
    20. Zhang, Wenjia & Kockelman, Kara M., 2016. "Congestion pricing effects on firm and household location choices in monocentric and polycentric cities," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 1-12.

    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:kap:transp:v:45:y:2018:i:2:d:10.1007_s11116-016-9742-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.