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Regulating hazardous materials transportation by dual toll pricing

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  • Esfandeh, Tolou
  • Kwon, Changhyun
  • Batta, Rajan

Abstract

We investigate dual-toll setting as a policy tool to mitigate the risk of hazardous material (hazmat) shipment in road networks. We formulate the dual-toll problem as a bi-level program wherein the upper level aims at minimizing the risk, and the lower level explores the user equilibrium decision of the regular vehicles and hazmat carriers given the toll. When the upper level objective is to minimize the risk and all links are tollable, we decompose the formulation into first-stage and second-stage, and suggest a computational method to solve each stage. Our two-stage solution methodology guarantees nonnegative valid dual tolls regardless of the solution accuracy of the first-stage problem. We also consider a general dual-toll setting problem where the regulator rather wishes to minimize a combination of risk and the paid tolls and/or some links are untollable. To solve this truly bilevel problem, we provide heuristic algorithms that decompose the problem into subproblems each being solved by a line search. Case studies based on the Sioux Falls network illustrate the insights on the dual-toll policies.

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  • Esfandeh, Tolou & Kwon, Changhyun & Batta, Rajan, 2016. "Regulating hazardous materials transportation by dual toll pricing," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 20-35.
    • Handle: RePEc:eee:transb:v:83:y:2016:i:c:p:20-35
    DOI: 10.1016/j.trb.2015.10.009
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    References listed on IDEAS

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    1. Iakovos Toumazis & Changhyun Kwon & Rajan Batta, 2013. "Value-at-Risk and Conditional Value-at-Risk Minimization for Hazardous Materials Routing," International Series in Operations Research & Management Science, in: Rajan Batta & Changhyun Kwon (ed.), Handbook of OR/MS Models in Hazardous Materials Transportation, edition 127, pages 127-154, Springer.
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    Cited by:

    1. Merve Bodur & Timothy C. Y. Chan & Ian Yihang Zhu, 2022. "Inverse Mixed Integer Optimization: Polyhedral Insights and Trust Region Methods," INFORMS Journal on Computing, INFORMS, vol. 34(3), pages 1471-1488, May.
    2. Tolou Esfandeh & Rajan Batta & Changhyun Kwon, 2018. "Time-Dependent Hazardous-Materials Network Design Problem," Transportation Science, INFORMS, vol. 52(2), pages 454-473, March.
    3. Fontaine, Pirmin & Crainic, Teodor Gabriel & Gendreau, Michel & Minner, Stefan, 2020. "Population-based risk equilibration for the multimode hazmat transport network design problem," European Journal of Operational Research, Elsevier, vol. 284(1), pages 188-200.
    4. Francisco López-Ramos & Stefano Nasini & Armando Guarnaschelli, 2019. "Road network pricing and design for ordinary and hazmat vehicles: Integrated model and specialized local search," Post-Print hal-02510066, HAL.
    5. Mohri, Seyed Sina & Mohammadi, Mehrdad & Gendreau, Michel & Pirayesh, Amir & Ghasemaghaei, Ali & Salehi, Vahid, 2022. "Hazardous material transportation problems: A comprehensive overview of models and solution approaches," European Journal of Operational Research, Elsevier, vol. 302(1), pages 1-38.
    6. Ditta, A. & Figueroa, O. & Galindo, G. & Yie-Pinedo, R., 2019. "A review on research in transportation of hazardous materials," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    7. Ke, Ginger Y. & Zhang, Huiwen & Bookbinder, James H., 2020. "A dual toll policy for maintaining risk equity in hazardous materials transportation with fuzzy incident rate," International Journal of Production Economics, Elsevier, vol. 227(C).
    8. Hosseini, S. Davod & Verma, Manish, 2018. "Conditional value-at-risk (CVaR) methodology to optimal train configuration and routing of rail hazmat shipments," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 79-103.
    9. Bhavsar, Nishit & Verma, Manish, 2022. "A subsidy policy to managing hazmat risk in railroad transportation network," European Journal of Operational Research, Elsevier, vol. 300(2), pages 633-646.
    10. Fontaine, Pirmin & Minner, Stefan, 2018. "Benders decomposition for the Hazmat Transport Network Design Problem," European Journal of Operational Research, Elsevier, vol. 267(3), pages 996-1002.
    11. Liu Su & Changhyun Kwon, 2020. "Risk-Averse Network Design with Behavioral Conditional Value-at-Risk for Hazardous Materials Transportation," Transportation Science, INFORMS, vol. 54(1), pages 184-203, January.

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