SpringerLink
Log in

Managing redistribution of toll revenue with user heterogeneity

  • Published:
Journal of Systems Science and Systems Engineering Aims and scope Submit manuscript

Abstract

With the explicit consideration of user heterogeneity, i.e., each user has a different value of time (VOT), this paper examines the system efficiency and social equity of toll revenue redistribution in a bi-mode transportation system. Three schemes of distributing the road toll revenue are proposed, which respectively consider efficiency, equity, as well as efficiency and equity together. With mild assumptions, we prove that the number of auto-motorists decreases and the total social cost increases with transit subsidy share when only marginal operating cost of the transit is covered by its fare. However, when average fixed cost of the transit is further covered, the total social cost is a “U” shape curve against the transit subsidy share. Numerical results show that the well designed toll revenue redistribution schemes can make the system more equitable while kee** high efficiency. With the increase of user heterogeneity, the Gini coefficient becomes larger while the total social cost goes down.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (Germany)

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Adler, J.M. (2001). A direct redistribution model of congestion pricing. Transportation Research Part B, 35(5):447–460

    Article  Google Scholar 

  2. Eliasson, J. (2001). Road pricing with limited information and heterogeneous users: a successful case. Annals of Regional Science, 35(4):595–604

    Article  Google Scholar 

  3. Eliasson, J. & Mattsson, L.G. (2006). Equity effects of congestion pricing: quantitative methodology and a case study for Stockholm. Transportation Research Part A, 40(7):602–620

    Google Scholar 

  4. Goodwin, P.B. (1989). The rule of three: a possible solution to the political problem of competing objectives for road pricing. Traffic Engineering and Control, 30:495–497

    Google Scholar 

  5. Guo, X. & Yang, H. (2010). Pareto-improving congestion pricing and revenue refunding with multiple user classes. Transportation Research Part B, 44(8–9): 972–982

    Article  Google Scholar 

  6. Hau, T.D. (1992). Economic Fundamentals of Road Pricing. World Bank Policy Research Paper Series.WPS1070. The World Bank, Washington DC

    Google Scholar 

  7. Kidokoro, Y. (2005). London-type congestion tax with revenue-recycling. Economics Bulletin, 18(1):1–6

    Google Scholar 

  8. Kidokoro, Y. (2010). Revenue recycling within transport networks. Journal of Urban Economics, 68(1):46–55

    Article  Google Scholar 

  9. King, D., Manville, M. & Shoup, D. (2007). The political calculus of congestion pricing. Transport Policy, 14(2):111–123

    Article  Google Scholar 

  10. Liu, Y., Guo, X. & Yang, H. (2009). Pareto-improving and revenue-neutral congestion pricing schemes in two-mode traffic networks. Economic Research and Electronic Networking, 10(1):123–140

    Article  Google Scholar 

  11. Mireabel, F. & Rrymond, M. (2010). Bottleneck congestion pricing and modal split: redistribution of toll revenue. Transportation Research Part A, 45(1):18–30

    Google Scholar 

  12. Nie, Y. & Liu, Y. (2010). Existence of self-financing and Pareto-improving congestion pricing: impact of value of time distribution. Transportation Research Part A, 44(1):39–51

    Google Scholar 

  13. Takuya, M. & Agachai, S. (2007). Efficiency and equity comparison of cordon-and area-based road pricing schemes using a trip-chain equilibrium model. Transportation Research Part A, 41(7):655–671

    Google Scholar 

  14. Tian, L.J., Huang, H.J. & Yang H. (2013). Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users. Transportation Research Part E, 54: 1–13

    Article  Google Scholar 

  15. Wu, W.X. & Huang, H.J. (2014). Finding anonymous tolls to realize target flow pattern in networks with continuously distributed value of time. Transportation Research Part B, 65:31–46

    Article  Google Scholar 

  16. **ao, F., Qian, Z. & Zhang, H.M. (2013). Managing bottleneck congestion with tradable credits. Transportation Research Part B, 56:1–14

    Article  Google Scholar 

  17. Xu, S.X., Liu, T.L. & Huang, H.J. (2014) Transit pricing and redistribution of toll revenue with user heterogeneity. Systems Engineering-Theory & Practice, submitted

    Google Scholar 

  18. Yang, H. & Huang, H.J. (2004). The multi-class, multi-criteria traffic network equilibrium and system optimum problem. Transportation Research Part B, 38(1):1–15

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Economics and Management, Beihang University, Bei**g, 100191, China

    Shu-**an Xu, Tian-Liang Liu & Hai-Jun Huang

Authors
  1. Shu-**an Xu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Tian-Liang Liu
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Hai-Jun Huang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tian-Liang Liu.

Additional information

This research was supported by the National Natural Science Foundation of China (71271001, 70901046), the National Basic Research Program of China (2012CB725401), and the Program for New Century Excellent Talents in University (NCET-13-0025). This is a substantially extended version of the paper “Efficiency and equity of redistribution of toll revenue with user heterogeneity” published at The 11th International Conf. on Service Systems and Service Management, and recommended for publication in this journal by the conference committee. The authors thank referees for their comments and suggestions to improve the paper.

Shu-**an Xu is a PhD Candidate of School of Economics and Management in Beihang University. She obtained her bachelor degree from School of Management Science and Engineering in Shandong Institute of Business and Technology in 2012. Her research interests include travel behavior analysis and congested road-use pricing. She recently won the ICSSSM 2014 Best Paper Award.

Tian-Liang Liu is currently an associate professor at Beihang University. He received the BSc and MSc degree, both in management, from Qingdao University in 2002 and 2005, respectively, and the PhD degree in transportation operations from Beihang University. His research interests include transportation economics and operations management. Dr. Liu has published over 20 papers in refereed conference proceedings and journals and has been the principal investigator of two NSFC projects.

Hai-Jun Huang is the Cheng Kong professor of the Bei**g University of Aeronautics and Astronautics (Beihang University). He received his PhD in transport operations research from Beihang in 1992. His research interests include road traffic flow models, transport network modeling, travel behavior analysis and congested road-use pricing. He has published more than 150 papers in such international journals as Transportation Research (Part A, Part B, Part C, Part E), OR, TS, EJOR and etc. As the vice president, he is serving the Systems Engineering Society of China, China Society of Management Science and Engineering, Chinese Society of Optimization, Overall Planning and Economic Mathematics. In 2011, he was selected as the IAC member of ISTTT.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Xu, SX., Liu, TL. & Huang, HJ. Managing redistribution of toll revenue with user heterogeneity. J. Syst. Sci. Syst. Eng. 23, 329–341 (2014). https://doi.org/10.1007/s11518-014-5251-z

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11518-014-5251-z

Keywords

Search

Navigation