Determining urban tolls based on two pricing schemes by considering emission of pollution (Case study: Isfahan, Iran)

Soleimani, Mozhgan; Nematollah, Akbari; Saffari, Babak; Haghshenas, Hosein · 2022 · OpenAlex-citations

DOI: 10.21203/rs.3.rs-1771235/v1

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Summary

This study addresses the dual challenges of traffic congestion and air pollution in urban environments by optimizing toll levels through two distinct pricing schemes: cordon-based and link-based pricing. Motivated by the significant contribution of motor vehicles to environmental degradation and the limitations of supply-side infrastructure expansion, the research aims to simultaneously minimize pollution emission costs and overall commuting costs. The study focuses on Isfahan, Iran, utilizing a multi-modal transportation network that includes private cars and public buses. The methodology employs a bi-level programming model. The upper-level model seeks to minimize the aggregate social cost, defined as the sum of traffic congestion costs and the monetary value of pollution emissions (specifically PM2.5 and NO2). The monetary value of pollution was derived using epidemiological studies, health impact assessments, and the value of a statistical life approach, rather than simple conversion parameters. The lower-level model represents user equilibrium in the transportation network, utilizing a binary logit model for modal split between cars and buses and Beckmann’s formulation for traffic assignment. To solve this NP-hard optimization problem, the authors applied a Genetic Algorithm (GA) for the upper-level toll optimization and the Frank-Wolfe algorithm for the lower-level traffic assignment. The GA used binary coding for cordon-based pricing and real-value coding for link-based pricing. The results demonstrate that both pricing schemes effectively mitigate traffic congestion and reduce pollution by shifting travel demand from private cars to public transportation. However, link-based pricing outperformed cordon-based pricing in terms of overall system efficiency. Specifically, the link-based scheme achieved greater reductions in pollution emissions while simultaneously generating higher toll revenues. The study confirms that internalizing the external costs of pollution and congestion through optimized tolls leads to more efficient network usage and improved environmental outcomes. The significance of this research lies in its comprehensive approach to monetizing pollution costs using health-based economic valuations, providing a more accurate reflection of social welfare than previous studies that relied on simplified emission constraints or generic conversion factors. By comparing cordon and link-based schemes, the findings offer actionable insights for policymakers, suggesting that while cordon-based pricing may be more publicly acceptable, link-based pricing offers superior performance in reducing environmental impacts and maximizing revenue. This supports the adoption of advanced pricing technologies to manage urban transport externalities effectively.

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