01047319

Component

This paper addresses the problem of optimal congestion pricing design in an integrated location/transportation model. Firstly, the marginal cost pricing schemes are examined in a specific integrated residential location/transportation model. It is shown that marginal cost pricing enforced on transportation network alone does not optimize the social welfare associated with a model that has external economies (or diseconomies) in the location or land use sector. Optimality can be achieved by imposing marginal cost pricing on both the transportation and location sectors. But in practice, marginal cost pricing can hardly be implemented. In order to make use of integrated location (or land use)/transportation models for designing practical transportation and land use policies, efficient computational methods for solving the optimal design problems in integrated location/transportation models are needed. In this paper a sensitivity analysis method for integrated location/transportation models is developed, based on which optimization algorithms are provided for designing optimal tolls and location taxes (subsidies). Although the algorithm is formulated for a specific model, the methodology it illustrates works for any integrated location/transportation model which is constructed by linking a congestible traffic network model, with a location model where transportation is a derivative of the location activities. A numerical example is given for illustrating the optimization method and for comparing potential impacts of various pricing schemes.

01042056

07-0709

English

13p

2007

Transportation Research Board 86th Annual Meeting

CD-ROM

Figures (1) ; References; Tables (3)

Congestion pricing; Land use models; Land use planning; Location; Location theory; Optimization; Policy making; Subsidies; Taxes; Traffic congestion; Transportation planning

Transportation models

Economics; Finance; Highways; Operations and Traffic Management; Planning and Forecasting; Policy; Public Transportation; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2007 Paper #07-0709

TRIS, TRB

Feb 8 2007 5:18PM