transport is also limited. Can drive demand to nearby roads and shift congestion Can hardly address network-wide congestion and express lanes in the USA Zonal Vehicles pay a charge when entering or exiting a bounded area, or simply travelling within the area without crossing the boundary. Often the boundary is chosen based on network topology and urban layout. Effective in addressing congestion particularly in the city centre The charge do not distinguish between a trip that reaches the destination immediately upon entering the bounded area and a trip that traverses the whole area. Vehicles are not directly charged according to how they use the road network which reflects their actual contributions to road congestion. London congestion charge While being similar to zonal charging, cordon-based charging does not charge vehicles if only travelling within the bounded area. Effective in addressing congestion particularly in the city centre The charge does not distinguish between a trip that reaches the destination immediately upon entering the bounded area and a trip that traverses the whole area. Electronic Road Pricing (ERP) system in Singapore Stockholm congestion charge Area C in Milan
Vehicles are not directly charged according to how they use the road network which reflects their actual contributions to road congestion. Vehicles simply travelling within the bounded area are not charged at all. Vehicles are charged on the total distance travelled in the network, which can be read from the vehicle odometer or obtained from a telematics device. Vehicles are charged explicitly on road usage, i.e. vehicle kilometres travelled (VKT). Vehicles are likely to concentrate on routes with the shortest distance in order to minimise the charge. Clusters of congested (i.e. pockets of congestion) may affect network productivity and efficiency. European charging for heavy goods vehicles (HGVs) The opt-in user-pays system in the state of Oregon, USA Vehicles are charged based on the total time spent in the network, which can be retrieved from a telematics device or obtained through mobile and infrastructure communications. Vehicles are charged explicitly on road usage (i.e. vehicle hours spent). The charge may result in safety and environmental concerns by encouraging vehicles to drive more aggressively and use minor roads (May and Milne, 2000) N/A trial trial trial
Appendix A. Table 4 A summary of the adopted road user pricing policies. Location Objective(s) Pricing mechanism Outcomes Singapore To reduce road congestion The ALS was a zonal charge requiring vehicles purchase a paper-based area licence (see Santos (2005) for prices of different licences) when entering the restricted zone (RZ) and several expressways. The ERP system consists of three cordons and several expressways requiring vehicles pay a “shoulder price” type of entry fee when passing through the specified locations. Bhatt et al. (2008): A 44 per cent reduction in traffic entering the RZ and a 20 per cent increase in speeds within the RZ (public transport included) A 24 per cent drop in weekday traffic entering the RZ and an increase in speeds within the RZ from 30-35 km/h to 40-45 km/h Commuting by car to the RZ by 1983 declined to 23 per cent despite large increases in car ownership and RZ employment. Public transport share of morning peak trips to the RZ increased to 69 per cent. Reductions in both CO concentrations and NOx emissions London, UK To reduce road congestion A charge requiring users purchase a Transport for London (2007): There were 54,000 fewer
Reduced road traffic casualties Stockholm, Sweden To reduce road congestion To improve environmental quality A charge requiring vehicles pay an entry fee (10-20 Swedish kronor depending on time of day) when entering or exiting the cordon area, with a maximum 60 Swedish kronor per vehicle per day Eliasson (2014): During the there was a 24 per cent reduction in commuting trips by cars; virtually all (99 per cent) switched to public transport and the remainder (1 per cent) switched to different routes. When the charge became permanent, the level of reduction remained relatively the same fluctuating around 20 per cent. A 13 per cent reduction in PM10 emissions and a 14 per cent reduction in CO2 emissions during the Italy The Ecopass to reduce traffic emissions. The Area C aims to reduce congestion. The Ecopass is a charge introduced in 2008 requiring vehicles pay an entry fee according to the European Croci (2016): Following the introduction of the Ecopass, traffic volumes, road accidents, and PM10 emissions within the cordon area
emission standards. The Area C is a charge introduced in 2012 requiring vehicles pay a flat daily charge of €5 (AU$8) when entering the cordon area. reduced by 16.2 per cent, 21.3 per cent, and 15 per cent between 2007 and 2011. Following the introduction of the Area C, traffic volumes, road accidents, and PM10 emissions within the cordon area further reduced by 30.1 per cent, 23.8 per cent, and 18 per cent respectively between 2011 and 2012. Public transport use (the number of passengers exiting subway stations) and the average public transport speed within the cordon area increased by 12.5 per cent and 11.8 per cent respectively in 2012 compared with 2011. Oregon, USA To replace the gas tax for revenue collection A charge whereby Whitty (2007): During the field test, those who paid the
pricing system (Infrastructure Victoria, 2016b). Table 6 introduces a number of road user pricing policy options for Melbourne and Table 7 evaluates each of them. Table 6 Alternative road user pricing policy options. Joint distance- and Joint time-, and Cordon/area Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 7 Definition and pros and cons of each road user pricing policy option. Option Definition Pros Cons The current pricing system is maintained without introducing a new user-pays system. No implementation, operating, and maintenance costs of the system No need for a complicated political process involving considerable interaction and cooperation between the public and different levels of government A huge opportunity cost, i.e. a loss of multiple potential benefits such as reduced congestion and emissions An inefficient and inequitable pricing system A less sustainable and liveable city A decrease in government revenues Model 1 Vehicles are charged on a basis when Simple to understand and implement Multiple benefits for the charging zone such as Inefficient in reducing congestion as a single payment allows an unlimited time-
entering a specified charging zone. improved travel and environmental conditions distance travelled within the charging zone Inequitable as vehicles always pay the same regardless of their actual road usage within the charging zone Less effective in managing demand for road as vehicles may adapt by changing their routes rather than switching to public transport or cancelling their trips Worsened travel conditions outside the charging zone as vehicles may detour Unable to reduce congestion in other areas Model 2 Vehicles are charged based on the distance travelled within a specified Simple to understand and implement Multiple benefits for the charging zone such as improved travel and environmental conditions Less effective in managing demand for road space as vehicles may adapt by changing their routes rather than
based on the distance travelled within the whole network. improved travel and environmental conditions Efficient and equitable as vehicles pay in proportion to the VKT within the entire network Effective in managing demand for road space as vehicles can no longer avoid the charge by changing their routes Having the potential to replace the existing pricing system including vehicle registration fees and fuel excise and implement Likely to disadvantage people who live in suburban areas and also have limited access to public transport Model 5 Vehicles are charged jointly based on time of day and the distance travelled within the whole network. Multiple benefits for the entire network such as improved travel and environmental conditions More efficient and equitable as the charge not only depends on the VKT, but also becomes that varies by time of day Effective in managing demand for road space as vehicles can no longer avoid the charge by changing their routes Complicated to understand and implement Likely to disadvantage people who live in suburban areas and also have limited access to public transport
Glossary Terminology Explanation Urban sprawl Extensive development in outer Melbourne and on Melbourne’s fringe, increasing the size of the built-up area Free-flow travel time The travel time when vehicles are freely flowing without interruption Value of time The amount of that a traveller would theoretically be willing to pay in order to save time – usually related to one’s hourly wage EV (electric vehicle) A private vehicle that is powered by electricity stored in rechargeable batteries CAV (connected and automated vehicle) A private vehicle that has an increased level of wireless connectivity and automated