Pareto-improving congestion pricing and revenue refunding with multiple user classes

Abstract

Follow this and additional works at: https://scholar.uwindsor.ca/odettepub Part of the Business CommonsRecommended Citation Recommended Citation Guo, Xiaolei and Yang, Hai. (2010). Pareto-improving congestion pricing and revenue refunding with multiple user classes. Transportation Research Part B, 44 (8), 972-982. AbstractThis study investigates Pareto-improving congestion pricing and revenue refunding schemes in general transportation networks, which make every road user better off as compared with the situation without congestion pricing. We consider user heterogeneity in value of time (VOT) by adopting a multiclass user model with fixed origin-destination (OD) demands. We first prove that an OD and class-based Pareto-improving refunding scheme exists if and only if the total system monetary travel disutility is reduced. In view of the practical difficulty in identifying individual user's VOT, we further investigate class-anonymous refunding schemes that give the same amount of refund to all user classes traveling between the same OD pair regardless of their VOTs. We establish a sufficient condition for the existence of such OD-specific but class-anonymous Pareto-improving refunding schemes, which needs information only on the average toll paid and average travel time for trips between each OD pair.

A Pareto‐improving hybrid policy for transportation networks

“…For the proposed hybrid policy, although the restriction ratio is still the same for all OD pairs, tolls are introduced to adjust roadway demands for different OD pairs. For some OD pairs, users may be better off paying tolls to access (1,3) 0.00 0.00 9.00 (1,4) 0.00 0.00 9.00 (2,3) 0.00 0.00 12.00 (2,4) 0.00 0.00 15.00 (1,5) 22.94 14.50 0.00 (1,6) 37.06 27.50 0.00 (2,5) 48.11 43.76 0.00 (2,6) 41.90 19.24 0.00 (5,6) 0.00 0.00 0.00 (5,7) 31.65 28.31 0.00 (5,9) 39.39 29.95 0.00 (6,5) 0.00 0.00 0.00 (6,8) 59.12 46.74 0.00 (6,9) 19.83 0.00 0.00 (7,3) 45.75 42.50 0.00 (7,4) 28.32 15.76 0.00 (7,8) 0.00 0.00 0.00 (8,3) 24.25 6.50 0.00 (8,4) 51.68 40.24 0.00 (8,7) 0.00 0.00 0.00 (9,7) 42.42 29.95 0.00 (9,8) 16.80 0.00 0.00 the road network on restricted days instead of taking transit. Furthermore, although tolls are charged on restricted users only, their route choices may influence route choices of non-restricted users and hence achieve be...…”

“…where, for OD pair w, Φ w;1 r is a set containing links that are available to regular users on path r and d(w) and o(w) denote the destination and origin nodes of OD pair w. t ij (•) represents both road and transit travel times. Thus, constraints (6) and (8) imply that the generalized travel cost of every utilized path equals r w;1 d w ð Þ À r w;1 o w ð Þ for regular users between OD pair w. When a link (i, j) is not utilized, that is, x w;1 ij ¼ 0, constraints (5) and (6) imply that the inequality t ij v ij À Á þ r w;1 i À r w1 j ≥0 holds. Similarly, if regular users are not using the transit link, that is, x w;1 ij ¼ 0, then constraints (7) and (8) ensure t ij þ r w;1 i À r w;1 i ≥0.…”

“…Nie and Liu [7] examined how users' VOT distributions may affect the existence of a Pareto-improving pricing and refunding scheme. Guo and Yang [8] investigated Pareto-improving pricing and refunding schemes in general transportation networks. They concluded that a congestion pricing scheme is Pareto improving as long as it reduces system travel time when all toll revenues are refunded to users.…”

A modern congestion pricing policy for urban traffic: subsidy plus toll

“…In contrast to the SO traffic pattern, they showed the redistribution scheme renders almost identical results. Guo and Yang [38] investigated the existence of Pareto-improving 4 TSS considering multiple users. In the presence of the restricting Pareto-improving condition, they show that the TSS problem always has a solution if a significant gap exists (The gap is the room for improvement and it refers to the difference in total travel time between the UE and SO traffic patterns).…”

Taxis in road pricing zone: should they pay the congestion charge?

“…Since Pigou first proposed the concept of congestion pricing in 1920 [1], abundant studies have been focused on different aspects of this subject, such as optimal toll rate, minimum toll revenue, equity effects, selection of charging locations, and public acceptance [2][3][4][5][6][7][8].…”