Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods

Jeffrey Shelton; Peter Martin

doi:doi:10.11648/j.ajtte.20190404.12

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Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods

Jeffrey Shelton, Peter Martin

Published in American Journal of Traffic and Transportation Engineering (Volume 4, Issue 4)

Received: 21 May 2019 Accepted: 23 July 2019 Published: 14 August 2019

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Abstract

Many toll facilities have been faced with traffic shortfalls due to inaccurate and over-forecasted toll revenue projections. Therefore calculating optimal toll rates can be a difficult process. Toll rates are often set to reflect the revenue needed to pay back bonds issued to finance the roadway. This research provides an alternative approach to calculating toll rates where revenue can be maximized while still considering the socio-demographics of the region. Several different approaches used in the border region were explored and compared to field data on an existing toll facility in El Paso, Texas. An innovative simulation-based modeling approach was used to test both static and dynamic pricing algorithms. Static tolling results showed optimal toll rates of $0.14/mile and $0.08/mile for Border Highway West in the westbound and eastbound directions respectively. The Cesar Chavez Highway has optimal toll rates of $0.12 and $0.10/mile in the west and eastbound directions. The dynamic tolling approach showed a max toll rate of $1.56/mile for Cesar Chavez Highway (westbound) during the morning peak period and then incrementally decreased to the minimum toll rate. However, the eastbound direction never increased above the minimum toll rate of $0.08 mile. Border Highway West never increased above the minimum toll rate in either direction. The dynamic tolling algorithm prediction is more representative of the optimal tolling rates for the border region-with the exception of Cesar Chavez Highway westbound.

Published in	American Journal of Traffic and Transportation Engineering (Volume 4, Issue 4)
DOI	10.11648/j.ajtte.20190404.12
Page(s)	118-131
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Dynamic Traffic Assignment, Toll Revenue Forecasting, Optimal Toll Rates, Value of Time

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APA Style

Jeffrey Shelton, Peter Martin. (2019). Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. American Journal of Traffic and Transportation Engineering, 4(4), 118-131. https://doi.org/10.11648/j.ajtte.20190404.12

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ACS Style

Jeffrey Shelton; Peter Martin. Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. Am. J. Traffic Transp. Eng. 2019, 4(4), 118-131. doi: 10.11648/j.ajtte.20190404.12

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AMA Style

Jeffrey Shelton, Peter Martin. Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. Am J Traffic Transp Eng. 2019;4(4):118-131. doi: 10.11648/j.ajtte.20190404.12

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@article{10.11648/j.ajtte.20190404.12,
  author = {Jeffrey Shelton and Peter Martin},
  title = {Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods},
  journal = {American Journal of Traffic and Transportation Engineering},
  volume = {4},
  number = {4},
  pages = {118-131},
  doi = {10.11648/j.ajtte.20190404.12},
  url = {https://doi.org/10.11648/j.ajtte.20190404.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtte.20190404.12},
  abstract = {Many toll facilities have been faced with traffic shortfalls due to inaccurate and over-forecasted toll revenue projections. Therefore calculating optimal toll rates can be a difficult process. Toll rates are often set to reflect the revenue needed to pay back bonds issued to finance the roadway. This research provides an alternative approach to calculating toll rates where revenue can be maximized while still considering the socio-demographics of the region. Several different approaches used in the border region were explored and compared to field data on an existing toll facility in El Paso, Texas. An innovative simulation-based modeling approach was used to test both static and dynamic pricing algorithms. Static tolling results showed optimal toll rates of $0.14/mile and $0.08/mile for Border Highway West in the westbound and eastbound directions respectively. The Cesar Chavez Highway has optimal toll rates of $0.12 and $0.10/mile in the west and eastbound directions. The dynamic tolling approach showed a max toll rate of $1.56/mile for Cesar Chavez Highway (westbound) during the morning peak period and then incrementally decreased to the minimum toll rate. However, the eastbound direction never increased above the minimum toll rate of $0.08 mile. Border Highway West never increased above the minimum toll rate in either direction. The dynamic tolling algorithm prediction is more representative of the optimal tolling rates for the border region-with the exception of Cesar Chavez Highway westbound.},
 year = {2019}
}

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TY - JOUR
T1 - Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods
AU - Jeffrey Shelton
AU - Peter Martin
Y1 - 2019/08/14
PY - 2019
N1 - https://doi.org/10.11648/j.ajtte.20190404.12
DO - 10.11648/j.ajtte.20190404.12
T2 - American Journal of Traffic and Transportation Engineering
JF - American Journal of Traffic and Transportation Engineering
JO - American Journal of Traffic and Transportation Engineering
SP - 118
EP - 131
PB - Science Publishing Group
SN - 2578-8604
UR - https://doi.org/10.11648/j.ajtte.20190404.12
AB - Many toll facilities have been faced with traffic shortfalls due to inaccurate and over-forecasted toll revenue projections. Therefore calculating optimal toll rates can be a difficult process. Toll rates are often set to reflect the revenue needed to pay back bonds issued to finance the roadway. This research provides an alternative approach to calculating toll rates where revenue can be maximized while still considering the socio-demographics of the region. Several different approaches used in the border region were explored and compared to field data on an existing toll facility in El Paso, Texas. An innovative simulation-based modeling approach was used to test both static and dynamic pricing algorithms. Static tolling results showed optimal toll rates of $0.14/mile and $0.08/mile for Border Highway West in the westbound and eastbound directions respectively. The Cesar Chavez Highway has optimal toll rates of $0.12 and $0.10/mile in the west and eastbound directions. The dynamic tolling approach showed a max toll rate of $1.56/mile for Cesar Chavez Highway (westbound) during the morning peak period and then incrementally decreased to the minimum toll rate. However, the eastbound direction never increased above the minimum toll rate of $0.08 mile. Border Highway West never increased above the minimum toll rate in either direction. The dynamic tolling algorithm prediction is more representative of the optimal tolling rates for the border region-with the exception of Cesar Chavez Highway westbound.
VL - 4
IS - 4
ER -

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Author Information

Jeffrey Shelton

Multi-Resolution Modeling, Texas A&M Transportation Institute, El Paso, USA
Peter Martin

Department of Civil Engineering, New Mexico State University, Las Cruces, USA

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Plain Text BibTeX RIS

APA Style

Jeffrey Shelton, Peter Martin. (2019). Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. American Journal of Traffic and Transportation Engineering, 4(4), 118-131. https://doi.org/10.11648/j.ajtte.20190404.12

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ACS Style

Jeffrey Shelton; Peter Martin. Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. Am. J. Traffic Transp. Eng. 2019, 4(4), 118-131. doi: 10.11648/j.ajtte.20190404.12

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AMA Style

Jeffrey Shelton, Peter Martin. Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods. Am J Traffic Transp Eng. 2019;4(4):118-131. doi: 10.11648/j.ajtte.20190404.12

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@article{10.11648/j.ajtte.20190404.12,
  author = {Jeffrey Shelton and Peter Martin},
  title = {Determining Optimal Tolling Rates for Border Regions Using Dynamic Modeling Methods},
  journal = {American Journal of Traffic and Transportation Engineering},
  volume = {4},
  number = {4},
  pages = {118-131},
  doi = {10.11648/j.ajtte.20190404.12},
  url = {https://doi.org/10.11648/j.ajtte.20190404.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtte.20190404.12},
  abstract = {Many toll facilities have been faced with traffic shortfalls due to inaccurate and over-forecasted toll revenue projections. Therefore calculating optimal toll rates can be a difficult process. Toll rates are often set to reflect the revenue needed to pay back bonds issued to finance the roadway. This research provides an alternative approach to calculating toll rates where revenue can be maximized while still considering the socio-demographics of the region. Several different approaches used in the border region were explored and compared to field data on an existing toll facility in El Paso, Texas. An innovative simulation-based modeling approach was used to test both static and dynamic pricing algorithms. Static tolling results showed optimal toll rates of $0.14/mile and $0.08/mile for Border Highway West in the westbound and eastbound directions respectively. The Cesar Chavez Highway has optimal toll rates of $0.12 and $0.10/mile in the west and eastbound directions. The dynamic tolling approach showed a max toll rate of $1.56/mile for Cesar Chavez Highway (westbound) during the morning peak period and then incrementally decreased to the minimum toll rate. However, the eastbound direction never increased above the minimum toll rate of $0.08 mile. Border Highway West never increased above the minimum toll rate in either direction. The dynamic tolling algorithm prediction is more representative of the optimal tolling rates for the border region-with the exception of Cesar Chavez Highway westbound.},
 year = {2019}
}

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