[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v15y2015i3p719-741.html
   My bibliography  Save this article

A New Tradable Credit Scheme for the Morning Commute Problem

Author

Listed:
  • Yu Nie
Abstract
This paper seeks to apply a new tradable credit scheme in the morning commute problem. When implementing such a scheme, the congestion management authority first delineates a peak-time window and then requires all traveler who pass the bottleneck within that window to either pay certain units of mobility credits, or a peak time toll (which is comparably more expensive). The authority also rewards credits to anyone who passes the bottleneck during the designated off-peak time window. An artificial market is created so that the travelers may trade these credits with each other. Our analyses, which are based on the Vickrey’s bottleneck model managed by step tolls, indicate that the proposed scheme has several notable advantages. First, the market allows those who value travel time savings less to be directly compensated by selling credits to those who value them more. This mechanism promises simpler and fairer distribution of the benefits from congestion relief. Second, as no transfer of wealth takes places between travelers and the authority, the payment made to acquire credits is less likely to be perceived as a tax. Third, the rewarding-charging mechanism avoids the top-down allocation of credits in existing tradable credit schemes. In the proposed scheme, credits are only rewarded to those who contribute to congestion relief. Last but not least, the proposed scheme is easy to understand and simple to implement. In particular, we show that the best choice of the rewarding-charging ratio is 1, i.e., each peak-time user will be charged one credit and each off-peak user will be awarded one credit. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Yu Nie, 2015. "A New Tradable Credit Scheme for the Morning Commute Problem," Networks and Spatial Economics, Springer, vol. 15(3), pages 719-741, September.
    • Handle: RePEc:kap:netspa:v:15:y:2015:i:3:p:719-741
    DOI: 10.1007/s11067-013-9192-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11067-013-9192-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11067-013-9192-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon F. Newell, 1987. "The Morning Commute for Nonidentical Travelers," Transportation Science, INFORMS, vol. 21(2), pages 74-88, May.
    2. Yang, Hai & Hai-Jun, Huang, 1997. "Analysis of the time-varying pricing of a bottleneck with elastic demand using optimal control theory," Transportation Research Part B: Methodological, Elsevier, vol. 31(6), pages 425-440, November.
    3. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    4. Hani Mahmassani & Robert Herman, 1984. "Dynamic User Equilibrium Departure Time and Route Choice on Idealized Traffic Arterials," Transportation Science, INFORMS, vol. 18(4), pages 362-384, November.
    5. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    6. Daganzo, Carlos F., 1995. "A pareto optimum congestion reduction scheme," Transportation Research Part B: Methodological, Elsevier, vol. 29(2), pages 139-154, April.
    7. Arnott, R. & de Palma, A. & Lindsey, R., 1990. "Departure time and route choice for the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 209-228, June.
    8. Tom Tietenberg, 2003. "The Tradable-Permits Approach to Protecting the Commons: Lessons for Climate Change," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(3), pages 400-419.
    9. Chris Hendrickson & George Kocur, 1981. "Schedule Delay and Departure Time Decisions in a Deterministic Model," Transportation Science, INFORMS, vol. 15(1), pages 62-77, February.
    10. Chu, Xuehao, 1999. "Alternative congestion pricing schedules," Regional Science and Urban Economics, Elsevier, vol. 29(6), pages 697-722, November.
    11. Henderson, J. V., 1974. "Road congestion : A reconsideration of pricing theory," Journal of Urban Economics, Elsevier, vol. 1(3), pages 346-365, July.
    12. Michael J. Smith, 1984. "The Existence of a Time-Dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 18(4), pages 385-394, November.
    13. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    14. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    15. Carlos F. Daganzo & Reinaldo C. Garcia, 2000. "A Pareto Improving Strategy for the Time-Dependent Morning Commute Problem," Transportation Science, INFORMS, vol. 34(3), pages 303-311, August.
    16. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    17. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    18. Carlos F. Daganzo, 1985. "The Uniqueness of a Time-dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 19(1), pages 29-37, February.
    19. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    20. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable Permits: Their Potential in the Regulation of Road Transport Externalities," Environment and Planning B, , vol. 24(4), pages 527-548, August.
    21. Bernstein, David & El Sanhouri, Ibrahim, 1994. "A note on "departure time and route choice for the morning commute"," Transportation Research Part B: Methodological, Elsevier, vol. 28(5), pages 391-394, October.
    22. Chen-Hsiu Laih, 2004. "Effects of the optimal step toll scheme on equilibrium commuter behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(1), pages 59-81.
    23. C. Robin Lindsey & Vincent A.C. van den Berg & Erik T. Verhoef, 2010. "Step by Step: Revisiting Step Tolling in the Bottleneck Model," Tinbergen Institute Discussion Papers 10-118/3, Tinbergen Institute, revised 02 Aug 2012.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Louis Balzer & Ludovic Leclercq, 2021. "Modal equilibrium of a tradable credit scheme with a trip-based MFD and logit-based decision-making," Papers 2112.07277, arXiv.org, revised Apr 2022.
    2. Zhang, Fang & Lu, Jian & Hu, Xiaojian, 2021. "Tradable credit scheme design with transaction cost and equity constraint," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    3. Wei Wu & Wei Liu & Fangni Zhang & Vinayak Dixit, 2021. "A New Flexible Parking Reservation Scheme for the Morning Commute under Limited Parking Supplies," Networks and Spatial Economics, Springer, vol. 21(3), pages 513-545, September.
    4. Siyu Chen & Ravi Seshadri & Carlos Lima Azevedo & Arun P. Akkinepally & Renming Liu & Andrea Araldo & Yu Jiang & Moshe E. Ben-Akiva, 2021. "Market Design for Tradable Mobility Credits," Papers 2101.00669, arXiv.org, revised Sep 2022.
    5. Jonathan D. Hall, 2017. "Improving the fit of structural models of congestion," Working Papers tecipa-590, University of Toronto, Department of Economics.
    6. Fei Han & Jian Wang & Lingli Huang & Yan Li & Liu He, 2023. "Modeling Impacts of Implementation Policies of Tradable Credit Schemes on Traffic Congestion in the Context of Traveler’s Cognitive Illusion," Sustainability, MDPI, vol. 15(15), pages 1-18, July.
    7. Xia Yang & Xuegang Jeff Ban & Rui Ma, 2017. "Mixed Equilibria with Common Constraints on Transportation Networks," Networks and Spatial Economics, Springer, vol. 17(2), pages 547-579, June.
    8. Xu, Da & Guo, Xiaolei & Zhang, Guoqing, 2019. "Constrained optimization for bottleneck coarse tolling," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 1-22.
    9. Fan, Wenbo & Xiao, Feng & Nie, Yu (Macro), 2022. "Managing bottleneck congestion with tradable credits under asymmetric transaction cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    10. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    11. Candia, Diego & Verhoef, Erik T., 2022. "Tradable mobility permits in a monocentric city with pre-existing labor taxation: A general equilibrium perspective," Transportation Research Part B: Methodological, Elsevier, vol. 163(C), pages 145-165.
    12. Jonathan D. Hall, 2024. "Inframarginal Travelers And Transportation Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(3), pages 1519-1550, August.
    13. Ravi Seshadri & André de Palma & Moshe Ben-Akiva, 2021. "Congestion Tolling−Dollars versus Tokens: Within-day Dynamics," THEMA Working Papers 2021-12, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    14. Ren-Yong Guo & Hai-Jun Huang & Hai Yang, 2019. "Tradable Credit Scheme for Control of Evolutionary Traffic Flows to System Optimum: Model and its Convergence," Networks and Spatial Economics, Springer, vol. 19(3), pages 833-868, September.
    15. Lahlou, Salem & Wynter, Laura, 2017. "A Nash equilibrium formulation of a tradable credits scheme for incentivizing transport choices: From next-generation public transport mode choice to HOT lanes," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 185-212.
    16. Ghafelebashi, Ali & Razaviyayn, Meisam & Dessouky, Maged, 2021. "Congestion Reduction via Personalized Incentives," Institute of Transportation Studies, Working Paper Series qt5b82168n, Institute of Transportation Studies, UC Davis.
    17. Nie, Yu (Marco), 2017. "On the potential remedies for license plate rationing," Economics of Transportation, Elsevier, vol. 9(C), pages 37-50.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    2. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    3. Chen, Hongyu & Liu, Yang & Nie, Yu (Marco), 2015. "Solving the step-tolled bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 210-229.
    4. Ramadurai, Gitakrishnan & Ukkusuri, Satish V. & Zhao, Jinye & Pang, Jong-Shi, 2010. "Linear complementarity formulation for single bottleneck model with heterogeneous commuters," Transportation Research Part B: Methodological, Elsevier, vol. 44(2), pages 193-214, February.
    5. Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    6. Ling-Ling Xiao & Hai-Jun Huang & Ronghui Liu, 2015. "Congestion Behavior and Tolls in a Bottleneck Model with Stochastic Capacity," Transportation Science, INFORMS, vol. 49(1), pages 46-65, February.
    7. Takayama, Yuki, 2020. "Who gains and who loses from congestion pricing in a monocentric city with a bottleneck?," Economics of Transportation, Elsevier, vol. 24(C).
    8. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
    9. Jia, Zehui & Wang, David Z.W. & Cai, Xingju, 2016. "Traffic managements for household travels in congested morning commute," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 173-189.
    10. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    11. Braid, Ralph M., 2018. "Partial peak-load pricing of a transportation bottleneck with homogeneous and heterogeneous values of time," Economics of Transportation, Elsevier, vol. 16(C), pages 29-41.
    12. Shen, Wei & Zhang, H.M., 2010. "Pareto-improving ramp metering strategies for reducing congestion in the morning commute," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(9), pages 676-696, November.
    13. Wada, Kentaro & Akamatsu, Takashi, 2013. "A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 94-112.
    14. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    15. Wu, Wen-Xiang & Huang, Hai-Jun, 2015. "An ordinary differential equation formulation of the bottleneck model with user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 34-58.
    16. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    17. Bao, Yue & Verhoef, Erik T. & Koster, Paul, 2019. "Regulating dynamic congestion externalities with tradable credit schemes: Does a unique equilibrium exist?," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 225-236.
    18. Liu, Yang & Nie, Yu (Marco), 2011. "Morning commute problem considering route choice, user heterogeneity and alternative system optima," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 619-642.
    19. Xiao, Feng & Qian, Zhen (Sean) & Zhang, H. Michael, 2013. "Managing bottleneck congestion with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 1-14.
    20. Liu, Yang & Nie, Yu (Marco) & Hall, Jonathan, 2015. "A semi-analytical approach for solving the bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 56-70.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:netspa:v:15:y:2015:i:3:p:719-741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.