Declining transportation funding and need for analytical solutions: dynamics and control of VMT tax (original) (raw)

The economic efficiency of value capture and road pricing to fund major transport projects

2017

Cost-Benefit Analysis is the most commonly used project evaluation tool to evaluate transport projects. However, Cost-Benefit Analysis generally disregards the economic cost of funding mechanism used to pay for the project. Public funds are typically used to pay for transport infrastructure projects, however, the use of the public funds has an economic cost to society through the raising of taxes. The marginal cost of using public funds accounts for both the tax burden and the welfare cost to society, through the distortion in resource allocation caused by the tax. This paper examines and compares the economic efficiencies of funding mechanisms, including a tax-based strategy consisting of various value capture strategies, and a user chargesbased strategy of road pricing strategies. The economic efficiency of the two funding mechanisms is investigated through an adjusted Benefit-Cost Ratio, which is calculated by incorporating the economic cost of the proposed funding mechanism in t...

Models and Heuristics for Dynamic Revenue Optimization in Road Transport

2007

In this document we consider an optimization problem which origins from freight exchanges. The aim is to increase the utilization of already scheduled road transportation activities by accepting extra loads. Such utilization increase reduces costs for the freight sender, increases revenue for the the transportation provider, and reduces congestion and pollution for the society at large. We explore various models which capture different real life problem settings. Our explorations regard finding good solutions for off line, on line, and on the line versions of the problems. We link the problem with revenue management literature and resource allocation literate, and report computational results on proposed approximation algorithms.

A Bilevel Model of Taxation and Its Application to Optimal Highway Pricing

Management Science, 1998

We consider a bilevel model where the leader wants to maximize revenues from a taxation scheme, while the follower rationally reacts to those tax levels. We focus our attention on the special case of a toll-setting problem defined on a multicommodity transportation network. We show that the general problem is NP-complete, while particular instances are polynomially solvable. Numerical examples are given.