Evaluating the Willingness to Pay for Urban Congestion Priced Zones (Case Study of Tehran)

Congestion pricing is one of the major travel demand management policies to reduce traffic volumes in metropolitans. One of the main factors for effective implementation of this policy is to analyze users' response to different toll rates. In this paper, the willingness of users to pay for using their personal cars is evaluated. The stated preference method was applied for data gathering. Several pricing scenarios are developed for analyzing the willingness to pay of users, under different scenarios. Travelers’ socio – economic characteristics as well as their trip chains and their mode choice according to different pricing scenarios are gathered by means of a questionnaire that was filled out by more than 4000 respondents. A binary logit model is applied to model choice behavior of users against different price scenarios. Results show that with 50000 Rials[i] toll for Tehran CBD[ii] area; 27 percent of users will use their personal cars for entering the congestion priced area. This rate is reduced to 7 percent if the toll increases to 200000 Rials. Keywords: Congestion pricing, stated preference method, modal split models [i] - 12600 rials = 1US dollar [ii] - Central Business District 6. References -Azari Ahmadi, K. , Arintono, S. , Hamid, H. and Rahmat, R. (2013) “Modeling demand under parking and cordon pricing policy”, Transport Policy 25, PP.1-9. -Bowerman, A. (2007) “The costs and benefits of road pricing: Comparing nationwide charging with project-based schemes”, IEA discussion paper No.17-18. -Brownstone, D. , Ghosh, A. , Golob, T.F. , Kazimi, C. and Van Amelsfort, D. (2003) “Driver's willingness to pay to reduce travel time”, evidence from the San Diego I-15 Congestion Pricing Project. Transportation Research A 37(15), pp. 373–387. -Carey, M. , and Srinvasan, A. (1993), “Externalities, average and marginal costs, and Tolls on congested networks with time varying flows” Operational Research 41(1), PP. 217-231. -Calfee, J. and Winston, C. (1998) “The value of automobile travel time: implications for congestion policy”, Journal of Public Economics 69, pp.83–102. -Chang Jou, R. , Chiou, Y. , Wei Kuo, C. and Tan, H. (2013) “Freeway drivers' willingness to pay for an on board unit under an electronic toll collection system”, Transport Research Part C 27, PP.16-24. -Comune di Milano (2008) “Monitoraggio indicatori Ecopass.AgenziaMilanese Mobilit_a Ambiente”,Milano, Italy -De Palma, A. (2009) “Traffic congestion pricing methods and technologies”, Department of Economics, Ecole Polytechnique, Institut Universitaire de France. - Ferrari, P. (2010) “Willingness to spend and pricing rates”, Transport Policy 17, p.160-172. -Gonzalez, R. M. (1997) “The value of time: a theoretical review”, Transport Reviews 17, pp.245–266. -Khattak, A. , Yim, Y. and Prokopy, L. (2003) “Willingness to pay for travel information”, Transport Research Part C, 11, pp.137-159. -Lopez, F. , Faulin, J. and Sanchez, M. (2012) “Determinants of the willingness to pay for reducing the environmental impacts of road transportation”, Transport Research Part D 17, pp.215-220. -Lopez, F. , Faulin, J. and Sanchez, M. (2012) “Determinants of the willingness to pay for reducing the environmental impacts of road transportation”, Transport Research Part D 17, pp.215-220. -Louviere, J., Hensher, A. and Swait, J. (2003) “Stated choice methods (Analysis and applications)”, Cambridge University Press, UK. -McFadden, Daniel (1974) "The measurement of urban travel demand", Journal of Public Economics, Vol. 3(4), pp. 303-328. -MIT Portugal Program (2009) “Stated preference survey for new smart transport modes and services: Design, pilot study and new revision”, Transportation Systems Focus Area. -Parseh Transportation Research Institute (2010) “Congestion pricing in CBD of Tehran”, Tehran Parseh Transportation Research Institute. -Small, K. A. (1982) "The scheduling of consumer activities: Work trips", The American Economic Review, 72(3), pp.467-479 -Small, K. A. , Noland, R. , Chu, X. and Lewis, D. (1999) “Valuation of travel-time savings and predictability in congested conditions for highway user-cost estimation”, National Cooperative Highway Research Program Report 431, National Academy Press, Washington, DC. -Tehran Comprehensive Transportation and Traffic Studies Company, 2006. ( There is no title for this document) -Transport for London (2004) “Central London congestion charging: impact monitoring”, Second Annual Report, London: Transport for London.