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Alternative methods for estimating full marginal costs of highway transportation

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  • Ozbay, Kaan
  • Bartin, Bekir
  • Yanmaz-Tuzel, Ozlem
  • Berechman, Joseph

Abstract

This paper presents various methods of estimating the full marginal cost (FMC) of highway passenger transportation. First, the computation of FMC is performed using the marginal cost functions, most of which were developed by Ozbay et al. [Ozbay, K., Bartin, B., Berechman, J., 2001. Estimation and evaluation of full marginal costs of highway transportation in New Jersey. Journal of Transportation and Statistics 4 (1)]. FMC is defined and calculated as "total cost per trip" as explained in this paper. However, in multiple origin-destination and multiple route highway networks, the practical application of the network-wide FMC concept is complicated. These issues are addressed in detail in this paper. Therefore, in the second method, a multiple route based FMC approach is proposed for a given origin-destination pair in the network. It is observed that the marginal values of different paths vary as much as 28%. Third, a comparison of FMC estimation results of two distinct measurement tools is presented. The FMC estimation is performed between a selected OD pair using the static transportation planning software output (TransCAD). The same analysis is repeated using the stochastic traffic simulation software output (PARAMICS). The differences in FMC values estimated by static transportation planning software and microscopic traffic simulation software are discussed.

Suggested Citation

  • Ozbay, Kaan & Bartin, Bekir & Yanmaz-Tuzel, Ozlem & Berechman, Joseph, 2007. "Alternative methods for estimating full marginal costs of highway transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 768-786, October.
    • Handle: RePEc:eee:transa:v:41:y:2007:i:8:p:768-786
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    References listed on IDEAS

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    1. Link, Heike, 2006. "An econometric analysis of motorway renewal costs in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 19-34, January.
    2. David Levinson & David Gillen, 1997. "The Full Cost of Intercity Highway Transportation," Working Papers 199704, University of Minnesota: Nexus Research Group.
    3. Levinson, David & Gillen, David & Kanafani, Adib & Mathieu, Jean-michel, 1996. "The Full Cost Of Intercity Transportation - A Comparison Of High Speed Rail, Air And Highway Transportation In California," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt8mm50358, Institute of Transportation Studies, UC Berkeley.
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    2. Berechman, Joseph, 2009. "Estimation of the full marginal costs of port related truck traffic," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 390-396, November.
    3. Bigazzi, Alexander Y. & Figliozzi, Miguel A., 2013. "Marginal costs of freeway traffic congestion with on-road pollution exposure externality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 12-24.
    4. Fumitoshi Mizutani & Yusuke Suzuki & Shuji Uranishi, 2015. "Estimation of Social Costs of Highways in Japan," Discussion Papers 2015-18, Kobe University, Graduate School of Business Administration.
    5. Tseng, Po-Hsing & Lin, Dung-Ying & Chien, Steven, 2014. "Investigating the impact of highway electronic toll collection to the external cost: A case study in Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 265-272.
    6. Yossi Berechman & Bekir Bartin & Ozlem Yanmaz-Tuzel & Kaan Ozbay, 2011. "The Full Marginal Costs of Highway Travel: Methods and Empirical Estimation for North America," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 19, Edward Elgar Publishing.
    7. Bilbao-Ubillos, Javier, 2008. "The costs of urban congestion: Estimation of welfare losses arising from congestion on cross-town link roads," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1098-1108, October.
    8. Delucchi, Mark A. & McCubbin, Donald R., 2010. "External Costs of Transport in the U.S," Institute of Transportation Studies, Working Paper Series qt13n8v8gq, Institute of Transportation Studies, UC Davis.
    9. Fumitoshi Mizutani & Yusuke Suzuki & Shuji Uranishi, 2017. "Magnitude of external costs of highways in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 337-357, October.
    10. Mark Delucchi & Don McCubbin, 2011. "External Costs of Transport in the United States," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 15, Edward Elgar Publishing.
    11. Sahin, Bahri & Yilmaz, Huseyin & Ust, Yasin & Guneri, Ali Fuat & Gulsun, BahadIr, 2009. "An approach for analysing transportation costs and a case study," European Journal of Operational Research, Elsevier, vol. 193(1), pages 1-11, February.
    12. Dimitrios Tsiotas & Labros Sdrolias & Dimitrios Belias, 2020. "The network paradigm as a modeling tool in regional economy: the case of interregional commuting in Greece," Papers 2001.09664, arXiv.org.
    13. Dimitrios Tsiotas & Serafeim Polyzos, 2021. "Making the Web-Science Operational for Interregional Commuting Analysis: Evidence from Greece," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 1-14, June.
    14. Efthymiou, D. & Antoniou, C., 2013. "How do transport infrastructure and policies affect house prices and rents? Evidence from Athens, Greece," Transportation Research Part A: Policy and Practice, Elsevier, vol. 52(C), pages 1-22.

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