Sustainable Toll Pricing and Capacity Investment in a Congested Road Network: A Goal Programming Approach
Publication: Journal of Transportation Engineering
Volume 140, Issue 12
Abstract
This paper addresses the road toll pricing and capacity investment problem in a congested road network in a multicriteria decision-making framework. A goal programming approach is used in which the following four major goals are considered: (1) cost recovery, (2) service level, (3) environmental, and (4) equity. The multiobjective road toll pricing and capacity investment problem is formulated as a bilevel goal programming model. The upper level of the model aims to minimize the deviations from stated goals for a given priority ranking of the goals, while the lower level is the road users’ route choice equilibrium problem. A simulated annealing-based solution algorithm is developed to solve the proposed model. Numerical results show that the priority structure of the goals can significantly affect the road toll pricing and capacity investment decisions. The simulated annealing-based solution algorithm outperforms the sensitivity analysis-based solution algorithm in terms of solution quality. The proposed methodology provides an avenue for understanding the trade-offs among conflicting objectives and for designing a financially and environmentally sustainable transportation system.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
The authors would like to thank three anonymous referees for their helpful comments and constructive suggestions on an earlier draft of the paper. The work described in this paper was jointly supported by grants from the National Natural Science Foundation of China (71171013, 71222107), the Doctoral Fund of Ministry of Education of China (20120142110044), the Research Grants Council of the Hong Kong Special Administrative Region, China (PolyU 5181/13E), the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIP) (NRF-2010-0029446), and the Center for Modern Information Management Research at the Huazhong University of Science and Technology.
References
Abdulaal, M., and Leblanc, L. J. (1979). “Continuous equilibrium network design models.” Transp. Res. Part B, 13(1), 19–32.
Adler, J. L., and Cetin, M. (2001). “A direct redistribution model of congestion pricing.” Transp. Res. Part B, 35(5), 447–460.
Anas, A., and Lindsey, R. (2011). “Reducing urban road transportation externalities: Road pricing in theory and in practice.” Rev. Environ. Econ. Policy, 5(1), 66–88.
Boyce, D. E., and Janson, B. N. (1980). “A discrete transportation network design problem with combined trip distribution and assignment.” Transp. Res. Part B, 14(1–2), 147–154.
Cantarella, G., and Vitetta, A. (2006). “The multi-criteria road network design problem in an urban area.” Transportation, 33(6), 567–588.
Charnes, A., Cooper, W. W., and Ferguson, R. (1955). “Optimal estimation of executive compensation by linear programming.” Manage. Sci., 1(2), 138–151.
Chen, A., Kim, J., Lee, S., and Kim, Y. (2010). “Stochastic multi-objective models for network design problem.” Expert Syst. Appl., 37(2), 1608–1619.
Chen, A., Kim, J., Zhou, Z., and Chootinan, P. (2007). “Alpha reliable network design problem.”, Transportation Research Board, Washington, DC, 49–57.
Chen, A., Subprasom, K., and Ji, Z. (2006). “A simulation-based multi-objective genetic algorithm (SMOGA) procedure for BOT network design problem.” Optim. Eng., 7(3), 225–247.
Chen, A., and Xu, X. (2012). “Goal programming approach to solving network design problem with multiple objectives and demand uncertainty.” Expert Syst. Appl., 39(4), 4160–4170.
Chen, A., and Yang, C. (2004). “Stochastic transportation network design problem with spatial equity constraint.”, Transportation Research Board, Washington, DC, 97–104.
Chen, A., Zhou, Z., Chootinan, P., Ryu, S., Yang, C., and Wong, S. C. (2011). “Transport network design problem under uncertainty: A review and new developments.” Transp. Rev., 31(6), 743–768.
Chiang, W. C., and Russell, R. A. (1996). “Simulated annealing metaheuristics for the vehicle routing problem with time windows.” Ann. Oper. Res., 63(1), 3–27.
Chiou, S. W. (2005). “Bilevel programming for the continuous transport network design problem.” Transp. Res. Part B, 39(4), 361–383.
Chiou, S. W. (2009). “Optimization of limited network capacity with toll settings.” Inf. Sci., 179(1–2), 109–119.
Chootinan, P., Wong, S. C., and Chen, A. (2005). “A reliability-based network design problem.” J. Adv. Transp., 39(3), 247–270.
de Palma, A., and Lindsey, R. (2007). “Transport user charges and cost recovery.” Res. Transp. Econ., 19(1), 29–57.
Fan, W., and Machemehl, R. B. (2006). “Using a simulated annealing algorithm to solve the transit route network design problem.” J. Transp. Eng., 122–132.
Farahani, R. Z., Miandoabchi, E., Szeto, W. Y., and Rashidi, H. (2013). “A review of urban transportation network design problems.” Eur. J. Oper. Res., 229(2), 281–302.
Ferguson, E. M., Duthie, J., and Waller, S. T. (2012). “Comparing delay minimization and emissions minimization in the network design problem.” Comput.-Aided Civ. Infrastruct. Eng., 27(4), 288–302.
Friesz, T. L., Anandalingam, G., Mehta, N. J., Nam, K., Shah, S. J., and Tobin, R. L. (1993). “The multiobjective equilibrium network design problem revisited: A simulated annealing approach.” Eur. J. Oper. Res., 65(1), 44–57.
Friesz, T. L., Cho, H. J., Mehta, N. J., Tobin, R. L., and Anandalingam, G. (1992). “A simulated annealing approach to the network design problem with variational inequality constraints.” Transp. Sci., 26(1), 18–26.
Gao, Z. Y., Wu, J. J., and Sun, H. J. (2005). “Solution algorithm for the bilevel discrete network design problem.” Transp. Res. Part B, 39(6), 479–495.
Huang, H. J., and Bell, M. G. H. (1998). “Continuous equilibrium network design problem with elastic demand: Derivative-free solution methods.” Transportation networks: Recent methodological advances, M. G. H. Bell, ed., Elsevier, Oxford, U.K., 175–193.
Huang, H. J., Wang, S. Y., and Bell, M. G. H. (2001). “A bi-level formulation and quasi-newton algorithm for stochastic equilibrium network design problem with elastic demand.” J. Syst. Sci. Complexity, 14(1), 40–53.
IPCC (Intergovernmental Panel on Climate Change). (2007). “Fourth assessment report: Climate change 2007.” 〈http://www.ipcc.ch/publications_and_data/publications_and_data_reports.html〉 (Nov. 17, 2007).
Jones, D. F., and Tamiz, M. (2010). Practical goal programming, Springer, New York.
Koh, A., Shepherd, S., and Sumalee, A. (2009). “Second best toll and capacity optimisation in networks: Solution algorithm and policy implications.” Transportation, 36(2), 147–165.
Kwak, N. K., and Schniederjans, M. J. (1985). “Goal programming solutions to transportation problems with variable supply and demand requirements.” Socio-Econ. Plann. Sci., 19(2), 95–100.
Leblanc, L. J. (1975). “An algorithm for the discrete network design problem.” Transp. Sci., 9(3), 183–199.
Lee, S. M., and Olson, D. L. (1999). “Goal programming.” Chapter 8, Multicriteria decision making: Advanced in MCDM models, algorithms, theory, and applications, T. Gal, T. J. Steward, and T. Hanne, eds., Kluwer Academic, Boston.
Leung, S. C. H., and Lai, K. K. (2002). “Multiple objective decision-making in the mode choice problem: A goal-programming approach.” Int. J. Syst. Sci., 33(1), 35–43.
Li, Z. C., and Ge, X. Y. (2013). “Traffic signal timing problems with environmental and equity considerations.” J. Adv. Transp., in press.
Li, Z. C., Lam, W. H. K., and Wong, S. C. (2012a). “Modeling intermodal equilibrium for bimodal transportation system design problems in a linear monocentric city.” Transp. Res. Part B, 46(1), 30–49.
Li, Z. C., Lam, W. H. K., Wong, S. C., and Sumalee, A. (2012b). “Environmentally sustainable toll design for congested road networks with uncertain demand.” Int. J. Sustain. Transp., 6(3), 127–155.
Li, Z. C., Li, Z. K., and Lam, W. H. K. (2014). “An integrated design of sustainable land use and transportation system with uncertainty in future population.” Transp. A, 10(2), 160–185.
Li, Z. C., and Sheng, D. (2014). “Pavement rehabilitation scheduling and toll pricing under different regulatory regimes.” Ann. Oper. Res., 217(1), 337–355.
Lo, H. K., and Hickman, M. D. (1997). “Toward an evaluation framework for road pricing.” J. Transp. Eng., 316–324.
Lo, H. K., and Szeto, W. Y. (2009). “Time-dependent transport network design under cost-recovery.” Transp. Res. Part B, 43(1), 142–158.
Luathep, P., Sumalee, A., Lam, W. H. K., Li, Z. C., and Lo, H. K. (2011). “Global optimization method for mixed transportation network design problem: A mixed-integer linear programming approach.” Transp. Res. Part B, 45(5), 808–827.
Magnanti, T., and Wong, R. (1984). “Network design and transportation planning: Models and algorithms.” Transp. Sci., 18(1), 1–55.
Mansouri, S. A. (2006). “A simulated annealing approach to a bi-criteria sequencing problem in a two-stage supply chain.” Comput. Ind. Eng., 50(1–2), 105–119.
McKendall, A. R., Shang, J., and Kuppusamy, S. (2006). “Simulated annealing heuristics for the dynamic facility layout problem.” Comput. Oper. Res., 33(8), 2431–2444.
Meng, Q., and Yang, H. (2002). “Benefit distribution and equity in road network design.” Transp. Res. Part B, 36(1), 19–35.
Meng, Q., Yang, H., and Bell, M. G. H. (2001). “An equivalent continuously differentiable model and a locally convergent algorithm for the continuous network design problem.” Transp. Res. Part B, 35(1), 83–105.
Mohring, H., and Harwitz, M. (1962). Highway benefits: An analytical framework, Northwestern University Press, Evanston, IL.
Nagurney, A., Qiang, Q., and Nagurney, L. S. (2010). “Environmental impact assessment of transportation networks with degradable links in an era of climate change.” Int. J. Sustain. Transp., 4(3), 154–171.
Penic, M. A., and Upchurch, J. (1992). “TRANSYT-7F: Enhancement for fuel consumption, pollution emissions, and user costs.”, Transportation Research Board, Washington, DC, 104–111.
Rilett, L. R., and Benedek, C. M. (1994). “Traffic assignment under environmental and equity objectives.”, Transportation Research Board, Washington, DC, 92–99.
Schniederjans, M. J. (1995). Goal programming: Methodology and applications, Kluwer Academic, Dordrecht, Netherlands.
Sheffi, Y. (1985). Urban transportation networks: Equilibrium analysis with mathematical programming methods, Prentice-Hall, Englewood Cliffs, NJ.
Shepherd, S. P. (2008). “The effect of complex models of externalities on estimated optimal tolls.” Transportation, 35(4), 559–577.
Sinha, S. B., and Sastry, S. V. C. (1987). “A goal programming model for facility location planning.” Socio-Econ. Plann. Sci., 21(4), 251–255.
Subprasom, K., and Chen, A. (2007). “Effects of regulation on highway pricing and capacity choice of a build-operate-transfer scheme.” J. Constr. Eng. Manage., 64–71.
Suwansirikul, C., Friesz, T. L., and Tobin, R. L. (1987). “Equilibrium decomposed optimization: A heuristic for the continuous equilibrium network design problem.” Transp. Sci., 21(4), 254–263.
Szeto, W. Y., Jaber, X. Q., and O’Mahony, M. (2010). “Time-dependent discrete network design frameworks considering land use.” Comput.-Aided Civ. Infrastruct. Eng., 25(6), 411–426.
Szeto, W. Y., Jaber, X. Q., and Wong, S. C. (2012). “Road network equilibrium approaches to environmental sustainability.” Transp. Rev., 32(4), 491–518.
Szeto, W. Y., Jiang, Y., Wang, Z. W., and Sumalee, A. (2013). “A sustainable road network design problem with land use transportation interaction over time.” Networks & Spatial Econ., in press.
Szeto, W. Y., and Lo, H. K. (2005). “Strategies for road network design over time: Robustness under uncertainty.” Transportmetrica, 1(1), 47–63.
Szeto, W. Y., and Lo, H. K. (2006). “Transportation network improvement and tolling strategies: The issue of intergeneration equity.” Transp. Res. Part A, 40(3), 227–243.
Tamiz, M., Jones, D. F., and El-Darzi, E. (1995). “A review of goal programming and its applications.” Ann. Oper. Res., 58(1), 39–53.
Tamiz, M., Jones, D. F., and Romero, C. (1998). “Goal programming for decision making: An overview of the current state-of-the-art.” Eur. J. Oper. Res., 111(3), 569–581.
Tobin, R. L., and Friesz, T. L. (1988). “Sensitivity analysis for equilibrium network flows.” Transp. Sci., 22(4), 242–250.
Transportation Network Test Problems (TNTP). (2013). 〈http://www.bgu.ac.il/~bargera/tntp/〉 (Oct. 1, 2013).
Tsekeris, T., and Voß, S. (2009). “Design and evaluation of road pricing: State-of-the-art and methodological advances.” Netnomics, 10(1), 5–52.
Tzeng, G. H., and Huang, J. J. (2011). Multiple attribute decision making: Methods and applications, CRC Press, New York.
United States Environmental Protection Agency (USEPA). (1991). “National air quality and emissions trends report.” 〈http://www.epa.gov/nscep/index.html〉.
United States Environmental Protection Agency (USEPA). (1992). “Transportation and air quality planning guidelines.” 〈http://www.epa.gov/nscep/index.html〉.
Verhoef, E. T., and Mohring, H. (2009). “Self-financing roads.” Int. J. Sustain. Transp., 3(5–6), 293–311.
Wallace, C. E., Courage, K. G., Hadi, M. A., and Gan, A. G. (1998). TRANSYT-7F user’s guide, Univ. of Florida, Gainesville, FL.
Wang, D. Z. W., and Lo, H. K. (2010). “Global optimum of the linearized network design problem with equilibrium flows.” Transp. Res. Part B, 44(4), 482–492.
Xu, X., Chen, A., and Cheng, L. (2013). “Stochastic network design problem with fuzzy goals.”, Transportation Research Board, Washington, DC, 23–33.
Yang, H., and Bell, M. G. H. (1997). “Traffic restraint, road pricing and network equilibrium.” Transp. Res. Part B, 31(4), 303–314.
Yang, H., and Bell, M. G. H. (1998). “Models and algorithms for road network design: A review and some new developments.” Transp. Rev., 18(3), 257–278.
Yang, H., and Huang, H. J. (2005). Mathematical and economic theory of road pricing, Elsevier, Oxford, U.K.
Yang, H., and Lam, W. H. K. (1996). “Optimal road tolls under conditions of queuing and congestion.” Transp. Res. Part A, 30(5), 319–332.
Yang, H., and Meng, Q. (2000). “Highway pricing and capacity choice in a road network under a build–operate–transfer scheme.” Transp. Res. Part A, 34(3), 207–222.
Yang, H., and Zhang, X. (2002). “Multiclass network toll design problem with social and spatial equity constraints.” J. Transp. Eng., 420–428.
Yin, Y., and Lawphongpanich, S. (2006). “Internalizing emission externality on road networks.” Transp. Res. Part D, 11(4), 292–301.
Information & Authors
Information
Published In
Copyright
© 2014 American Society of Civil Engineers.
History
Received: Jan 2, 2014
Accepted: May 19, 2014
Published online: Jul 14, 2014
Published in print: Dec 1, 2014
Discussion open until: Dec 14, 2014
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.