MIT1_201JF08_lec13

MIT1_201JF08_lec13 - Pricing of Transportation Services:...

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Pricing of Transportation Services: Theory and Practice II Moshe Ben-Akiva 1.201 / 11.545 / ESD.210 Transportation Systems Analysis: Demand & Economics Fall 2008
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Review and Outline Review of Previous Lecture: – Review of cost and demand concepts – Public sector pricing in theory – Issues with marginal cost pricing – Congestion pricing in theory Outline of this Lecture: – Public sector pricing in practice: Congestion pricing Pricing vehicle emissions Public Transportation – Private sector pricing in theory and in practice – Appendix: Examples of congestion pricing 2
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Congestion Pricing in Practice Characteristics of the congestion problem – Severity Avg. speed: Manhattan: 6 mph (Traffic Congestion Mitigation Commission of NYS DOT, Interim Report for Public Comment, 2007) ; London: 9 mph (Transport for London Congestion Charging Group, Impacts Monitoring – First Annual Report, 2003) Magnitude: between Lyon and Paris on 16 Feb 1980, a traffic jam (queue) of 109 miles (176 km) (Guinness Book of World Records, 2007) – Economic cost Urban Mobility Report (TTI, 2004): 2002 cost of congestion in U.S. (lost time, excess fuel, increased VOC) was US$63.5 billion – Unpredictability It’s estimated that over half the delays on freeways in the U.S. are due to non-recurrent events (accidents, breakdowns, etc.) 3
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Congestion Pricing in Practice (cont.) Concerns over congestion pricing – “Driving should be free” – Equity – Use of revenues – Privacy/Confidentiality 4
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Congestion Pricing in Practice (cont.) Ideal features of a congestion pricing scheme – Sensitivity to true marginal costs of auto use By level of congestion By time of day By direction of travel By area of travel – Transparency – Predictability 5
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Congestion Pricing in Practice (cont.) Short-term reactions to congestion pricing – Suppress trips – Change departure time – Change mode – Change destination/chain trips – Change route – Carpool (share costs, exploit exemptions) Long-term reactions to congestion pricing – Land use / activity system change 6
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Examples of Congestion Pricing Singapore Area Licensing Scheme (ALS) and Electronic Road Pricing (ERP) Trondheim toll ring Autoroute A1 (Paris – Lille) California SR-91 (“value pricing”) London congestion charging scheme Stockholm Congestion Charge New York City: tried but defeated politically 7
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Examples of Congestion Pricing (cont.) Lessons learned: – Pricing does cause travelers to change their behavior But wide variety of price levels / system impacts – Almost all pricing schemes to date are blunt (not very sensitive to congestion costs or levels) Cordon or individual facility based Limited variation by time of day (e.g. peak/off-peak) – Public acceptance is key to success Perception of current traffic problems Promise to use proceeds to fund local improvements or perception of choice options Addressing confidentiality concerns Political leadership 8
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MIT1_201JF08_lec13 - Pricing of Transportation Services:...

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