A Multi-Disciplinary Perspective
Edited by Erik Verhoef, Michiel Bliemer, Linda Steg and Bert van Wee
Chapter 7: Transit Market Effects on Socially Optimal Congestion Charging
7. Transit market eﬀects on socially optimal congestion charging Michael Bell and Muanmas Wichiensin 7.1 INTRODUCTION Traﬃc congestion in urban areas is one of the most serious problems for the government and transport planners. Since a congestion charging scheme was ﬁrst introduced in Singapore more than 30 years ago, big cities like Seoul and Tokyo have considered such schemes, with London implementing congestion charging in 2003 (see reviews in Gomez-Ibañez and Small, 1994; May and Milne, 2000). From this evidence, many studies have been made for the auto mode network in order to determine the optimal congestion charge (see, for example, Arnott and Small, 1994; Liu and McDonald, 1999). However, congestion charging aﬀects not only car drivers who must pay the charge but also the users of alternative modes, as well as decisions about whether to travel in the ﬁrst place. Hence, a model which allows for variable demand, as well as mode choice, is required for a comprehensive assessment of the impact. In particular, cities considering congestion charging will normally have two transit modes (bus and train). These services are often provided by the private sector in some regulated way. In the UK, following bus privatization in 1980, several studies have focused on the characteristics of the transit market. Some say that the market is contested (Beesley and Glaister, 1985), while others that the evidence is inconclusive or disputable (Gwilliam et al., 1985; Evans, 1991). Some say that the tendency for an operator seeking to...
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