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A Model for Optimizing Electronic Toll Collection Systems

Author

Listed:
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

  • Elva Chang

Abstract

This paper examines the deployment of electronic toll collection (ETC) and develops a model to maximize social welfare associated with a toll plaza. A payment choice model estimates the share of traffic using ETC as a function of delay, price, and a fixed cost of acquiring the in-vehicle transponder. Delay in turn depends on the relative number of ETC and Manual Collection Lanes. Price depends on the discount given to users of the ETC Lanes. The fixed cost of acquiring the transponder (not simply a monetary cost, but also the effort involved in signing up for the program) is a key factor in the model. Once a traveler acquires the transponder, the cost of choosing ETC in the future declines significantly. Welfare depends on the market share of ETC, and includes delay and gasoline consumption, toll collection costs, and social costs such as air pollution. This work examines the best combination of ETC Lanes and toll discount to maximize welfare. Too many ETC lanes cause excessive delay to non-equipped users. Too high a discount costs the highway agency revenue needed to operate the facility. The model is applied to California¹s Carquinez Bridge, and recommendations are made concerning the number of dedicated ETC lanes and the appropriate ETC discount.

Suggested Citation

  • David Levinson & Elva Chang, 2003. "A Model for Optimizing Electronic Toll Collection Systems," Working Papers 200306, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:etc
    as

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    File URL: http://hdl.handle.net/11299/179910
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    References listed on IDEAS

    as
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    5. David M. Levinson, 1997. "Job and housing tenure and the journey to work," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(4), pages 451-471.
    6. Friedman, David A. & Waldfogel, Joel, 1995. "The Administrative and Compliance Cost of Manual Highway Toll Collection: Evidence From Massachusetts and New Jersey," National Tax Journal, National Tax Association, vol. 48(2), pages 217-28, June.
    7. Friedman, David A. & Waldfogel, Joel, 1995. "The Administrative and Compliance Cost of Manual Highway Toll Collection: Evidence From Massachusetts and New Jersey," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(2), pages 217-228, June.
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    Citations

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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. Holgun-Veras, Jos & Cetin, Mecit, 2009. "Optimal tolls for multi-class traffic: Analytical formulations and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 445-467, May.
    3. Holguín-Veras, José, 2011. "Urban delivery industry response to cordon pricing, time-distance pricing, and carrier-receiver policies in competitive markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 802-824, October.
    4. Yuan, Naitong & Ma, Minghui & Liang, Shidong & Wang, Wenjie & Zhang, Hu, 2022. "Optimal control method of freeway based on tollbooths lane configuration and variable speed limit control," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).
    5. Holgui­n-Veras, Jose & Cetin, Mecit & Xia, Shuwen, 2006. "A comparative analysis of US toll policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(10), pages 852-871, December.
    6. Ioannis-Dimosthenis Ramandanis & Ioannis Politis & Socrates Basbas, 2020. "Assessing the Environmental and Economic Footprint of Electronic Toll Collection Lanes: A Simulation Study," Sustainability, MDPI, vol. 12(22), pages 1-25, November.
    7. Pengsen Yang & Minghui Ma & Chaoteng Wu, 2024. "Ecologically Oriented Freeway Control Methods Integrated Speed Limits and Ramp Toll Booths Layout," Sustainability, MDPI, vol. 16(11), pages 1-14, May.

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    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D10 - Microeconomics - - Household Behavior - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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