Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme

Zhu, Daqi; Yang, Hai; Li, Changmin; Wang, Xiaolei

doi:10.1287/trsc.2013.0508

Cited by 62 publications

(27 citation statements)

References 30 publications

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“…In this paper, the problem of consignor's choice of land port company is transformed into the problem of traveler's choice of road in transportation network (i.e., travelers choose the road according to the principle of cost minimization). We use the method of variational inequality to analyze the market share of land port company (Zhu et al, 2014). The variational inequality is as follows:…”

Section: ) Consignor Utilitymentioning

confidence: 99%

Study on Competitive Strategy of China Railway Express Operation by Land Port Company

Sun¹

2020

AJIBM

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With the in-depth implementation of the "One Belt One Road" initiative, the number of cities, which have opened direct train to European countries, is increasing in China. With the rapid development of China Railway Express (CR Express) market, the problems of insufficient supply, disorderly competition and high operation cost are becoming more and more prominent, which leads to increasingly disordered competition among CR Express. Finding a balanced subsidy among local governments is a key way to solve the above problems. This paper constructs a Hotelling model which is in line with the characteristics of the development of CR Express from the aspects of consignor's utility and land port company's revenue. Then the equilibrium price, market share and revenue of land port company are solved, and the optimal local government subsidy under equilibrium condition is analyzed. Subsequently, the land port company (Xi'an) and land port company (Zhengzhou) are chosen for empirical analysis. The establishment of government subsidy policies conducive to market development can effectively reduce the disordered competition among land port companies and contribute to the sustainable development of CR Express.

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Section: ) Consignor Utilitymentioning

confidence: 99%

Study on Competitive Strategy of China Railway Express Operation by Land Port Company

Sun¹

2020

AJIBM

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“…Examples are the imposition of tolls on the roads forming cordon lines encompassing a central business district (CBD) or on the roads forming some screen lines which bisect the road network. One of the main challenges in the pricing schemes is the equity [20]. Equity concern is associated with the distribution of costs and benefits among the members of the society.…”

Section: First-best Congestions Pricing Versus Second-best and Equitymentioning

confidence: 99%

“…The interested reader for a comprehensive review of the former subject can consult with [18,30,31] and for the latter with [1,20,24,[32][33][34][35].…”

Section: Tss and Capacitated Traffic Assignmentmentioning

confidence: 99%

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

Bagloee

Sarvi

2017

J. Mod. Transport.

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Congestion pricing is seen as an effective policy to address traffic congestion. In such policies where money, people and authorities are involved, the success generally hinges upon two factors: equity (being fair) and acceptability (to both people and authorities). The primary concern is the equity, for which ''tradable credit scheme (TCS)'' has been introduced and extensively studied in the literature. Nevertheless, due to the complexity of the trading schemes, the TCS has yet to find any foot in the real world. To this end, a novel idea of rewarding has substituted the trading component to be known as toll-and-subsidy scheme (TSS). The idea is to charge the drivers on some roads (toll) while rewarding them to use other alternative-and perhaps underutilizedroads (subsidy). The research of the TSS is in its infancy stage. The problem to be tackled in this study is as follows: Given a set of roads constituting a cordon line around the central business district (CBD) or across a screen line, how much toll or subsidy should be assigned to each road? The problem is first transformed into a capacitated traffic assignment problem. We employ a solution method based on augmenting the travel time of roads up to the level at which the traffic volumes do not exceed some target rates. A real dataset from the city of Winnipeg, Canada, is used as a pilot study. We then discuss policy-related applications of the TSS. It is proved in the literature that one can obtain optimal TSSs for various objectives and considerations. To this end, the non-negativity of the toll values is relaxed which results in a valid toll set. Nevertheless, the computational time is found to be of highest significance. Our method differs in the fact that the traffic volumes are bounded from the above and it is quite affordable. The main contribution is first to highlight the concept of subsidy along with traditional thought of merely toll. Second is to interpret the Lagrangian values of the capacity constraints as the values of the toll/subsidy.

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“…Wang et al (2012) further consider travelers' heterogeneity in terms of value of time (VOT) in analyzing the equilibrium condition under TCS. Zhu et al (2015) address VOT heterogeneity by adopting a continuous distribution of VOTs across travelers. Bao et al (2014) study the effects of travelers' loss aversion behavior on their route choice decisions under TCS, where purchasing extra credits is perceived as monetary loss.…”

Section: Introductionmentioning

confidence: 99%

A Multi-Period Tradable Credit Scheme Incorporating Interest Rate and Traveler Value-of-Time Heterogeneity to Manage Traffic System Emissions

Miralinaghi

Peeta

2018

Front. Built Environ.

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This study focuses on a tradable credit scheme (TCS)-based multi-period equilibrium modeling framework to address the planning problem of a central authority which seeks to minimize the vehicular emissions in a traffic network over a planning horizon. In this context, the multi-period TCS equilibrium conditions consist of traffic, and market equilibrium conditions. To develop an effective TCS design in practice, this study factors the heterogeneity in travelers' value of time (VOT) to enable realism in capturing the traffic equilibrium conditions, and the interest rate to reflect market realism. The VOT is an important factor in the route choice process as travelers tradeoff the credit consumption and travel time costs of each route. Further, travelers decide between selling or transferring unused credits across periods based on the dynamic interest rates over the planning horizon as they can accrue interest by selling credits in the market. The study investigates the existence and uniqueness of multi-period equilibrium credit prices, aggregate link flows and travel demand rates. Then, the equilibrium credit prices under the multi-period TCS are analyzed and it is demonstrated that while credit price volatility increases with increasing interest rates, it can be dampened by the ability of travelers to transfer credits under the multi-period TCS. Finally, a system optimal (SO) multi-period TCS is designed to determine the TCS parameters (credit allocation and charging schemes) that minimize vehicular emissions in a traffic network over the planning horizon. The study insights suggest that the SO design of multi-period TCS provides a capability to manage network vehicular emissions over the planning horizon. Further, they suggest that if VOT is not factored, the TCS would be socially inequitable, and ignoring interest rates creates inefficiencies in achieving desired emissions levels.

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Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme

Cited by 62 publications

References 30 publications

Study on Competitive Strategy of China Railway Express Operation by Land Port Company

Study on Competitive Strategy of China Railway Express Operation by Land Port Company

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

A Multi-Period Tradable Credit Scheme Incorporating Interest Rate and Traveler Value-of-Time Heterogeneity to Manage Traffic System Emissions

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