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A direct redistribution model of congestion pricing

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  • Adler, Jeffrey L.
  • Cetin, Mecit

Abstract

This paper discusses a direct redistribution approach to congestion pricing in which monies collected from drivers on a more desirable route are directly transferred to users on a less desirable route. An analytical model for a two-node two-route network is developed. An example is used to demonstrate the applicability of this model. It is shown that this model of toll collection and subsidization will reduce the travel cost for all travelers and totally eliminate the waiting time in the queue. When compared against the social optimal assignment, the direct redistribution model yields almost identical results.

Suggested Citation

  • Adler, Jeffrey L. & Cetin, Mecit, 2001. "A direct redistribution model of congestion pricing," Transportation Research Part B: Methodological, Elsevier, vol. 35(5), pages 447-460, June.
    • Handle: RePEc:eee:transb:v:35:y:2001:i:5:p:447-460
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    References listed on IDEAS

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    1. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    2. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
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    Citations

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    Cited by:

    1. Liu, Yang & Nie, Yu (Marco), 2011. "Morning commute problem considering route choice, user heterogeneity and alternative system optima," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 619-642.
    2. Chen, Linxi & Yang, Hai, 2012. "Managing congestion and emissions in road networks with tolls and rebates," Transportation Research Part B: Methodological, Elsevier, vol. 46(8), pages 933-948.
    3. Zheng, Yu & Zhang, Xiaoning & Liang, Zhe, 2020. "Multimodal subsidy design for network capacity flexibility optimization," Transportation Research Part A: Policy and Practice, Elsevier, vol. 140(C), pages 16-35.
    4. Ren-Yong Guo & Hai-Jun Huang & Hai Yang, 2019. "Tradable Credit Scheme for Control of Evolutionary Traffic Flows to System Optimum: Model and its Convergence," Networks and Spatial Economics, Springer, vol. 19(3), pages 833-868, September.
    5. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    6. Tian, Li-Jun & Yang, Hai & Huang, Hai-Jun, 2013. "Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 54(C), pages 1-13.
    7. Chen, Ruoyun & Nozick, Linda, 2016. "Integrating congestion pricing and transit investment planning," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 124-139.
    8. 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.
    9. François Mirabel & Mathias Reymond, 2011. "The urban toll revenue recycling : what is the optimal share distributed towards mass transit system?," Working Papers hal-01830227, HAL.
    10. Naroditskiy, Victor & Steinberg, Richard, 2015. "Maximizing social welfare in congestion games via redistribution," LSE Research Online Documents on Economics 62771, London School of Economics and Political Science, LSE Library.
    11. Perera, Loshaka & Thompson, Russell G. & Wu, Wenyan, 2021. "Toll and subsidy for freight vehicles on urban roads: A policy decision for City Logistics," Research in Transportation Economics, Elsevier, vol. 90(C).
    12. Yang Liu & Xiaolei Guo & Hai Yang, 2009. "Pareto-improving and revenue-neutral congestion pricing schemes in two-mode traffic networks," Netnomics, Springer, vol. 10(1), pages 123-140, April.
    13. 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.
    14. Naroditskiy, Victor & Steinberg, Richard, 2015. "Maximizing social welfare in congestion games via redistribution," Games and Economic Behavior, Elsevier, vol. 93(C), pages 24-41.
    15. Nie, Yu (Marco) & Liu, Yang, 2010. "Existence of self-financing and Pareto-improving congestion pricing: Impact of value of time distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(1), pages 39-51, January.
    16. Yang Liu & Yu (Marco) Nie, 2017. "A Credit-Based Congestion Management Scheme in General Two-Mode Networks with Multiclass Users," Networks and Spatial Economics, Springer, vol. 17(3), pages 681-711, September.
    17. 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.
    18. Guo, Xiaolei & Yang, Hai, 2010. "Pareto-improving congestion pricing and revenue refunding with multiple user classes," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 972-982, September.
    19. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    20. Cipriani, Ernesto & Mannini, Livia & Montemarani, Barbara & Nigro, Marialisa & Petrelli, Marco, 2019. "Congestion pricing policies: Design and assessment for the city of Rome, Italy," Transport Policy, Elsevier, vol. 80(C), pages 127-135.
    21. Adler, Jeffrey L. & Satapathy, Goutam & Manikonda, Vikram & Bowles, Betty & Blue, Victor J., 2005. "A multi-agent approach to cooperative traffic management and route guidance," Transportation Research Part B: Methodological, Elsevier, vol. 39(4), pages 297-318, May.

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