Design of more equitable congestion pricing and tradable credit schemes for multimodal transportation networks

Wu, Di; Yin, Yafeng; Lawphongpanich, Siriphong; Yang, Hai

doi:10.1016/j.trb.2012.05.004

Cited by 138 publications

(55 citation statements)

References 26 publications

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“…One such a scheme is the tradable credit scheme (Verhoef et al 1997;Viegas 2001;Yang and Wang 2011;Wu et al 2012;Nie and Yin 2013) and another is the tradable permit system (Akamatsu 2007;Wada and Akamatsu 2013). In tradable mobility credit scheme, the government sets a predetermined congestion reduction goal and tries to achieve it by creating a market for mobility credits.…”

Section: Related Workmentioning

confidence: 99%

“…Analysis of travel behavior under a novel transportation system is also important because such behavior usually varies across users. To achieve policy goals, which means efficient use of transportation system, without monitoring the private value that users placed upon their time or upon transportation services, the tradable credit scheme model has been proposed (Verhoef et al 1997;Viegas 2001;Yang and Wang 2011;Wu et al 2012;Nie and Yin 2013). According to this scheme, credits were distributed by the government and users were then required to pay a certain number of credits to use transportation services and facilities.…”

Section: Introductionmentioning

confidence: 99%

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Analysis of dynamic decision-making in a bicycle-sharing auction using a dynamic discrete choice model

Hara

Hato

2017

Transportation

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For clarifying the usefulness and practical issues of a tradable permit system empirically, we implemented a tradable permit system for a bicycle-sharing service in Yokohama city, Japan. We analyzed both travel and transaction behavior within this system. Many activity factors, such as the amount of free time in each day, home location and travel mode to the bicycle port, were shown to affect the transaction of tradable permits. The results of the pilot program indicated that inefficient allocation of tradable permits occurred when participants postponed their decision-making because of uncertainty. To determine the reason for this effect and the contributing factors, we created a dynamic discrete choice model to describe the choice results and timing. The estimation result indicated that the option value of postponing decision-making caused the transactions to be performed at the last minute, and that this effect blocked the liquidity of the permits trade. In addition, because the result reveals that there was heterogeneity in the time discount factor, the initial allocation of permits was found to be important for efficient allocation.

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Section: Related Workmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Analysis of dynamic decision-making in a bicycle-sharing auction using a dynamic discrete choice model

Hara

Hato

2017

Transportation

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“…Equitable approaches are also used in congestion pricing schemes to ensure "fair" treatment of the travelers that are categorized for example by income or geographic locations (Wu et al, 2012;Levinson, 2010). Wu et al (2012) consider a pricing scheme more equitable if it leads to a more uniform distribution of wealth across different groups of population.…”

Section: Transportation Network and Supply Chain Design Problemsmentioning

confidence: 99%

“…Wu et al (2012) consider a pricing scheme more equitable if it leads to a more uniform distribution of wealth across different groups of population.…”

Section: Transportation Network and Supply Chain Design Problemsmentioning

confidence: 99%

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Inequity averse optimization in operational research

Karsu

Morton

2015

European Journal of Operational Research

135

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a b s t r a c tThere are many applications across a broad range of business problem domains in which equity is a concern and many well-known operational research (OR) problems such as knapsack, scheduling or assignment problems have been considered from an equity perspective. This shows that equity is both a technically interesting concept and a substantial practical concern. In this paper we review the operational research literature on inequity averse optimization. We focus on the cases where there is a tradeoff between efficiency and equity.We discuss two equity related concerns, namely equitability and balance. Equitability concerns are distinguished from balance concerns depending on whether an underlying anonymity assumption holds. From a modeling point of view, we classify three main approaches to handle equitability concerns: the first approach is based on a Rawlsian principle. The second approach uses an explicit inequality index in the mathematical model. The third approach uses equitable aggregation functions that can represent the DM's preferences, which take into account both efficiency and equity concerns. We also discuss the two main approaches to handle balance: the first approach is based on imbalance indicators, which measure deviation from a reference balanced solution. The second approach is based on scaling the distributions such that balance concerns turn into equitability concerns in the resulting distributions and then one of the approaches to handle equitability concerns can be applied.We briefly describe these approaches and provide a discussion of their advantages and disadvantages. We discuss future research directions focussing on decision support and robustness.

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Trial and error method for optimal tradable credit schemes: The network case

Wang

Yang

Han

et al. 2013

J of Advced Transportation

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Recent studies on the new congestion reduction method-tradable credit scheme rely on the full information of speed-flow relationship, demand function, and generalized cost. As analytical travel demand, functions are difficult to establish in practice. This paper develops a trial and error method for selecting optimal credit schemes for general networks in the absence of demand functions. After each trial of tradable credit scheme, the credit charging scheme and total amount of credits to be distributed are updated by both observed link flows at traffic equilibrium and revealed credit price at market equilibrium. The updating strategy is based on the method of successive averages and its convergence is established theoretically. Our numerical experiments demonstrate that the method of successive averages based trial and error method for tradable credit schemes has a lower convergence speed in comparison with its counterpart for congestion pricing and could be enhanced by exploring more efficient methods that make full use of credit price information.We note that such a tradable credit scheme will cause inconvenience to non-local residents who want to enter or go through the city, because they need to purchase credits from the local credit trading market, and buy or rent in-car equipment for credit payment before entering the city. However, such inconvenience for non-local residents exists not solely under tradable credit schemes. In Singapore where congestion pricing is implemented, the non-local residents also have to purchase in-car equipment for road pricing from convenience stores near the city edge before entering the city. With fast development of technology, we believe such inconvenience is minor. Furthermore, if desired, the social planner could let non-local users pay traditional congestion charge instead when entering a city or region. Indeed, differentiated treatment of local and non-local traffic is underway in Beijing for its traffic rationing scheme (similarly in Shanghai). It is also politically justifiable because it is the local taxpayers' money that has been used for road construction and maintenance. 686 X. WANG ET AL.As proved by Yang and Wang [1], the UE link flowv and demandd under any credit scheme (K,κ) are unique, and the ME credit pricep is unique as long as there exists at least one O-D pair w ∈ W 688 X. WANG ET AL.

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Design of more equitable congestion pricing and tradable credit schemes for multimodal transportation networks

Cited by 138 publications

References 26 publications

Analysis of dynamic decision-making in a bicycle-sharing auction using a dynamic discrete choice model

Analysis of dynamic decision-making in a bicycle-sharing auction using a dynamic discrete choice model

Inequity averse optimization in operational research

Trial and error method for optimal tradable credit schemes: The network case

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