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Road pricing and network equilibrium

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  • Ferrari, Paolo

Abstract

The paper presents a deterministic static equilibrium model for urban transport networks with elastic demand and capacity constraints. It is shown that this model may have no solution which satisfies the capacity constraints, but additional costs can be imposed on some network links so that an equilibrium solution that satisfies the capacity constraints always exists. These additional costs could be used as road pricing, in order to prevent traffic flow becoming unstable and/or producing unacceptable environmental damage. A method to calculate the additional costs is proposed and is used in a simple numerical example. The results so obtained are compared with the congestion tolls derived from the traditional economic theory.

Suggested Citation

  • Ferrari, Paolo, 1995. "Road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 29(5), pages 357-372, October.
    • Handle: RePEc:eee:transb:v:29:y:1995:i:5:p:357-372
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    References listed on IDEAS

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    1. Bell, Michael G. H., 1992. "Future directions in traffic signal control," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(4), pages 303-313, July.
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    Cited by:

    1. Yang, Hai & Meng, Qiang, 1998. "Departure time, route choice and congestion toll in a queuing network with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 247-260, May.
    2. Ferrari, Paolo, 1999. "A model of urban transport management," Transportation Research Part B: Methodological, Elsevier, vol. 33(1), pages 43-61, February.
    3. Yang, Hai & Huang, Hai-Jun, 2004. "The multi-class, multi-criteria traffic network equilibrium and systems optimum problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 1-15, January.
    4. Seungkyu Ryu, 2021. "Mode Choice Change under Environmental Constraints in the Combined Modal Split and Traffic Assignment Model," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    5. Larsson, Torbjörn & Patriksson, Michael & Rydergren, Clas, 2004. "A column generation procedure for the side constrained traffic equilibrium problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 17-38, January.
    6. Ferrari, Paolo, 2002. "Road network toll pricing and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 36(5), pages 471-483, June.
    7. Seungkyu Ryu & Anthony Chen & Xiangdong Xu & Keechoo Choi, 2014. "A Dual Approach for Solving the Combined Distribution and Assignment Problem with Link Capacity Constraints," Networks and Spatial Economics, Springer, vol. 14(2), pages 245-270, June.
    8. Chen, Mei & Bernstein, David H., 2004. "Solving the toll design problem with multiple user groups," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 61-79, January.
    9. Wang, Fan & Xiong, Minghua & Niu, Baozhuang & Zhuo, Xiaopo, 2018. "Impact of government subsidy on BOT contract design: Price, demand, and concession period," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 137-159.
    10. Ferrari, Paolo, 2005. "Road pricing and users' surplus," Transport Policy, Elsevier, vol. 12(6), pages 477-487, November.
    11. 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.
    12. Yang, Hai & Zhang, Xiaoning & Meng, Qiang, 2004. "Modeling private highways in networks with entry-exit based toll charges," Transportation Research Part B: Methodological, Elsevier, vol. 38(3), pages 191-213, March.
    13. Qiang Meng & Zhiyuan Liu, 2011. "Trial-and-error method for congestion pricing scheme under side-constrained probit-based stochastic user equilibrium conditions," Transportation, Springer, vol. 38(5), pages 819-843, September.
    14. Yildirim, Mehmet Bayram & Hearn, Donald W., 2005. "A first best toll pricing framework for variable demand traffic assignment problems," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 659-678, September.
    15. Yang, Hai & Bell, Michael G. H. & Meng, Qiang, 2000. "Modeling the capacity and level of service of urban transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 34(4), pages 255-275, May.
    16. Chen, Zhiyuan & Ye, Hanrui & Liu, Bingxi & Xue, Weili, 2021. "Analysis of road capacity and franchise price decision delegation in toll road BOT project," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    17. Robert B. Dial, 1999. "Network-Optimized Road Pricing: Part I: A Parable and a Model," Operations Research, INFORMS, vol. 47(1), pages 54-64, February.
    18. Ferrari, Paolo, 2010. "Willingness to spend and road pricing rates," Transport Policy, Elsevier, vol. 17(3), pages 160-172, May.
    19. Ferrari, Paolo, 1997. "Capacity constraints in urban transport networks," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 291-301, August.
    20. Ferrari, Paolo, 2018. "Some necessary conditions for the success of innovations in rail freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 747-758.
    21. Yang, Hai & Bell, Michael G. H., 1997. "Traffic restraint, road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 303-314, August.
    22. Hai Yang, 1999. "Evaluating the benefits of a combined route guidance and road pricing system in a traffic network with recurrent congestion," Transportation, Springer, vol. 26(3), pages 299-322, August.
    23. Marino Lupi & Chiara Pratelli & Alessandro Farina, 2021. "A Methodology for the Definition of the Acoustic Capacity of a Road Infrastructure," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    24. Xin Lin & Chris M. J. Tampère & Stef Proost, 2020. "Optimizing Traffic System Performance with Environmental Constraints: Tolls and/or Additional Delays," Networks and Spatial Economics, Springer, vol. 20(1), pages 137-177, March.
    25. Larsson, Torbjörn & Patriksson, Michael, 1999. "Side constrained traffic equilibrium models-- analysis, computation and applications," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 233-264, May.

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