IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v183y2024ics0191261524000493.html
   My bibliography  Save this article

Regulating for-hire autonomous vehicles for an equitable multimodal transportation network

Author

Listed:
  • Gao, Jing
  • Li, Sen

Abstract

This paper assesses the equity impacts of for-hire autonomous vehicles (AVs) and investigates regulatory policies that promote spatial and social equity in future autonomous mobility ecosystems. To this end, we consider a multimodal transportation network, where a ride-hailing platform operates a fleet of AVs to offer mobility-on-demand services in competition with a public transit agency that offers transit services on a transportation network. A game-theoretic model is developed to characterize the intimate interactions between the ride-hailing platform, the transit agency, and multiclass passengers with distinct income levels. An algorithm is proposed to compute the Nash equilibrium of the game and conduct an ex-post evaluation of the performance of the obtained solution. Based on the proposed framework, we evaluate the spatial and social equity in mobility benefits using the Theil index, and find that although the proliferation of for-hire AVs in the ride-hailing network improves overall mobility, the benefits are not fairly distributed among distinct locations or population groups, implying that the deployment of AVs will enlarge the existing spatial and social inequity gaps in the transportation network if no regulatory intervention is in place. To address this concern, we investigate two regulatory policies that can improve transport equity: (a) a minimum service-level requirement on ride-hailing services, which improves the spatial equity in the transport network; (b) a subsidy on transit services by taxing ride-hailing services, which promotes the use of public transit and improves the spatial and social equity of the transport network. We show that the minimum service-level requirement entails a trade-off: as a higher minimum service level is imposed, the spatial inequity reduces, but the social inequity will be exacerbated. On the other hand, subsidies on transit services improve mobility for low-income households in underserved areas. In certain regimes, the subsidy increases public transit ridership and simultaneously bridges spatial and social inequity gaps. These results are validated through realistic numerical studies for San Francisco.

Suggested Citation

  • Gao, Jing & Li, Sen, 2024. "Regulating for-hire autonomous vehicles for an equitable multimodal transportation network," Transportation Research Part B: Methodological, Elsevier, vol. 183(C).
  • Handle: RePEc:eee:transb:v:183:y:2024:i:c:s0191261524000493
    DOI: 10.1016/j.trb.2024.102925
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261524000493
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.trb.2024.102925?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. Spiess, Heinz & Florian, Michael, 1989. "Optimal strategies: A new assignment model for transit networks," Transportation Research Part B: Methodological, Elsevier, vol. 23(2), pages 83-102, April.
    2. Alberto Dianin & Elisa Ravazzoli & Georg Hauger, 2021. "Implications of Autonomous Vehicles for Accessibility and Transport Equity: A Framework Based on Literature," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    3. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    4. Ahmed, Tanjeeb & Hyland, Michael & Sarma, Navjyoth J.S. & Mitra, Suman & Ghaffar, Arash, 2020. "Quantifying the employment accessibility benefits of shared automated vehicle mobility services: Consumer welfare approach using logsums," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 221-247.
    5. Meredith-Karam, Patrick & Kong, Hui & Wang, Shenhao & Zhao, Jinhua, 2021. "The relationship between ridehailing and public transit in Chicago: A comparison before and after COVID-19," Journal of Transport Geography, Elsevier, vol. 97(C).
    6. Mi Diao & Hui Kong & Jinhua Zhao, 2021. "Impacts of transportation network companies on urban mobility," Nature Sustainability, Nature, vol. 4(6), pages 494-500, June.
    7. Li, Sen & Yang, Hai & Poolla, Kameshwar & Varaiya, Pravin, 2021. "Spatial pricing in ride-sourcing markets under a congestion charge," Transportation Research Part B: Methodological, Elsevier, vol. 152(C), pages 18-45.
    8. Hughes, Ryan & MacKenzie, Don, 2016. "Transportation network company wait times in Greater Seattle, and relationship to socioeconomic indicators," Journal of Transport Geography, Elsevier, vol. 56(C), pages 36-44.
    9. Nguyen, S. & Pallottino, S., 1988. "Equilibrium traffic assignment for large scale transit networks," European Journal of Operational Research, Elsevier, vol. 37(2), pages 176-186, November.
    10. Erhardt, Gregory D. & Hoque, Jawad Mahmud & Goyal, Vedant & Berrebi, Simon & Brakewood, Candace & Watkins, Kari E., 2022. "Why has public transit ridership declined in the United States?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 68-87.
    11. Zhu, Zheng & Xu, Ailing & He, Qiao-Chu & Yang, Hai, 2021. "Competition between the transportation network company and the government with subsidies to public transit riders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    12. Ouyang, Yanfeng & Nourbakhsh, Seyed Mohammad & Cassidy, Michael J., 2014. "Continuum approximation approach to bus network design under spatially heterogeneous demand," Transportation Research Part B: Methodological, Elsevier, vol. 68(C), pages 333-344.
    13. Hall, Jonathan D. & Palsson, Craig & Price, Joseph, 2018. "Is Uber a substitute or complement for public transit?," Journal of Urban Economics, Elsevier, vol. 108(C), pages 36-50.
    14. Yanbo Ge & Christopher R. Knittel & Don MacKenzie & Stephen Zoepf, 2016. "Racial and Gender Discrimination in Transportation Network Companies," NBER Working Papers 22776, National Bureau of Economic Research, Inc.
    15. Ke, Jintao & Zhu, Zheng & Yang, Hai & He, Qiaochu, 2021. "Equilibrium analyses and operational designs of a coupled market with substitutive and complementary ride-sourcing services to public transits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    16. Arnott, Richard, 1996. "Taxi Travel Should Be Subsidized," Journal of Urban Economics, Elsevier, vol. 40(3), pages 316-333, November.
    17. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
    18. Daganzo, Carlos F., 2010. "Structure of competitive transit networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 434-446, May.
    19. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2020. "How rural is too rural for transit? Optimal transit subsidies and supply in rural areas," Journal of Transport Geography, Elsevier, vol. 88(C).
    20. Nahmias-Biran, Bat-hen & Oke, Jimi B. & Kumar, Nishant, 2021. "Who benefits from AVs? Equity implications of automated vehicles policies in full-scale prototype cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 92-107.
    21. Wen, Jian & Nassir, Neema & Zhao, Jinhua, 2019. "Value of demand information in autonomous mobility-on-demand systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 346-359.
    22. Rosalia Camporeale & Leonardo Caggiani & Achille Fonzone & Michele Ottomanelli, 2019. "Study of the accessibility inequalities of cordon-based pricing strategies using a multimodal Theil index," Transportation Planning and Technology, Taylor & Francis Journals, vol. 42(5), pages 498-514, July.
    23. Zhu, Zheng & Qin, Xiaoran & Ke, Jintao & Zheng, Zhengfei & Yang, Hai, 2020. "Analysis of multi-modal commute behavior with feeding and competing ridesplitting services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 713-727.
    24. Chen, T. Donna & Kockelman, Kara M. & Hanna, Josiah P., 2016. "Operations of a shared, autonomous, electric vehicle fleet: Implications of vehicle & charging infrastructure decisions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 243-254.
    25. Kumar, Pramesh & Khani, Alireza, 2022. "Planning of integrated mobility-on-demand and urban transit networks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 499-521.
    Full references (including those not matched with items on IDEAS)

    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. Jing Gao & Sen Li, 2023. "Regulating For-Hire Autonomous Vehicles for An Equitable Multimodal Transportation Network," Papers 2301.05798, arXiv.org, revised Oct 2023.
    2. Ke, Jintao & Li, Xinwei & Yang, Hai & Yin, Yafeng, 2021. "Pareto-efficient solutions and regulations of congested ride-sourcing markets with heterogeneous demand and supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    3. Cortina, Mélanie & Chiabaut, Nicolas & Leclercq, Ludovic, 2023. "Fostering synergy between transit and Autonomous Mobility-on-Demand systems: A dynamic modeling approach for the morning commute problem," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    4. Xu, Zhengtian & Yin, Yafeng & Zha, Liteng, 2017. "Optimal parking provision for ride-sourcing services," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 559-578.
    5. Zhu, Zheng & Xu, Ailing & He, Qiao-Chu & Yang, Hai, 2021. "Competition between the transportation network company and the government with subsidies to public transit riders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    6. Brown, Anne, 2022. "Not all fees are created equal: Equity implications of ride-hail fee structures and revenues," Transport Policy, Elsevier, vol. 125(C), pages 1-10.
    7. Yang, Hai & Qin, Xiaoran & Ke, Jintao & Ye, Jieping, 2020. "Optimizing matching time interval and matching radius in on-demand ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 84-105.
    8. Fayed, Lynn & Nilsson, Gustav & Geroliminis, Nikolas, 2023. "On the utilization of dedicated bus lanes for pooled ride-hailing services," Transportation Research Part B: Methodological, Elsevier, vol. 169(C), pages 29-52.
    9. Yuan Liang & Bingjie Yu & Xiaojian Zhang & Yi Lu & Linchuan Yang, 2022. "The Short-term Impact of Congestion Taxes on Ridesourcing Demand and Traffic Congestion: Evidence from Chicago," Papers 2207.01793, arXiv.org, revised Feb 2023.
    10. Javier Durán-Micco & Pieter Vansteenwegen, 2022. "A survey on the transit network design and frequency setting problem," Public Transport, Springer, vol. 14(1), pages 155-190, March.
    11. Brown, Anne, 2021. "Not All Fees are Created Equal: Equity Implications of Ride-hail Fee Structures," OSF Preprints cpsqu, Center for Open Science.
    12. Zhang, Kenan & Nie, Yu (Marco), 2022. "Mitigating traffic congestion induced by transportation network companies: A policy analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 96-118.
    13. Soria, Jason & Stathopoulos, Amanda, 2021. "Investigating socio-spatial differences between solo ridehailing and pooled rides in diverse communities," Journal of Transport Geography, Elsevier, vol. 95(C).
    14. Zhang, Zhaolin & Zhai, Guocong & Xie, Kun & Xiao, Feng, 2022. "Exploring the nonlinear effects of ridesharing on public transit usage: A case study of San Diego," Journal of Transport Geography, Elsevier, vol. 104(C).
    15. Zhang, Kenan & Nie, Yu (Marco), 2021. "To pool or not to pool: Equilibrium, pricing and regulation," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 59-90.
    16. Yoshifumi Konishi & Akari Ono, 2024. "Is Ride-sharing Good for Environment?," Keio-IES Discussion Paper Series 2024-014, Institute for Economics Studies, Keio University.
    17. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    18. Saeed Maadi & Jan-Dirk Schmöcker, 2020. "Route choice effects of changes from a zonal to a distance-based fare structure in a regional public transport network," Public Transport, Springer, vol. 12(3), pages 535-555, October.
    19. Liu, Yining & Ouyang, Yanfeng, 2021. "Mobility service design via joint optimization of transit networks and demand-responsive services," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 22-41.
    20. Liang, Yuan & Yu, Bingjie & Zhang, Xiaojian & Lu, Yi & Yang, Linchuan, 2023. "The short-term impact of congestion taxes on ridesourcing demand and traffic congestion: Evidence from Chicago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).

    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:eee:transb:v:183:y:2024:i:c:s0191261524000493. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.