Principles of the toll roads pricing
Journal Title: Archives of Transport - Year 2018, Vol 45, Issue 1
Abstract
In this paper the authors refer to the method of commercial provision of road infrastructure called BOT (build-operate-transfer) under Public-private partnerships (PPPs) scheme. First we present the investment criteria for transportation PPP projects as well as application of price theory. Then we recognize that the different participants in PPP projects have distinct goals and requirements that must be met in order for them to be able to participate in an effective partnership. The main challenge for the toll road pricing is to determine the economically viable toll rate that takes into consideration the diverse and sometimes conflicting interests of different stakeholders involved in the project. The main objective is to review the theory of economic principles for optimal toll roads pricing and to review the existing approaches to transportation projects appraisal. Then the authors show how to formally derive the condition for toll rate that meets 2 criteria: 1) is socially optimal and 2) covers operator’s costs. For this purpose we use II type Tőrnquist function, a member of an Engel family of functions. This function models the relationship between income and consumption of inferior and normal goods. Tőrnquist function is a mathematical representation of the well-known Engel curves. These curves record the relationship between the quantity of goods purchased and total income. They are not necessarily straight lines. The demand for some “luxury” goods may increase proportionally more rapidly than income, whereas the demand for “necessities” may grow proportionally less rapidly than income. The precise shape will depend on the individual’s preferences for goods as reflected in the indifference curve map. We deem the highway trip to be a “second necessity good”. There is number of economists who apply the Tőrnquist function for microeconomic analysis. The extremely simple form of the Tőrnquist function allows to get the solution in a closed form.<br/><br/>
Authors and Affiliations
Piotr Jaworski, Kamil Liberadzki, Marcin Liberadzki
Keywords
Related Articles
- EP ID EP346539
- DOI 10.5604/01.3001.0012.0941
- Views 117
- Downloads 0
GENETIC ALGORITHMS BASED APPROACH FOR TRANSHIPMENT HUB LOCATION IN URBAN AREAS
Points of distribution, sales or service are important elements of the supply chain. These are the final elements which are responsible for proper functioning of the whole cargo distribution process. Proper location of t...
THE ROAD SAFETY AT TURBO ROUNDABOUTS IN POLAND
There are to two groups of turbo roundabouts used currently in Poland. The first group is turbo roundabouts with geometry and traffic organization designed following the model of Dutch turbo roundabouts with raised lane...
The Analysis of Travellers Behaviour in the Upper Silesian Conurbation
Based on the traffic model developed by the authors for the major part of the area of the future Silesia Metropolis (in Poland), the change directions of the public and individual transportation tendencies in the coming...
Exploitation Research of Tram’s Head Lighting – Low Beam Lights
Appropriately shaped light beam conditions correct visibility from a tram driver’s seat and makes it easier to assess properly road situations connected with behaviour of other road traffic participants. The article pres...
Control of Pump Operation by Varying Rotational Speed in the Road Infrastructure
The paper evaluates applicability of pumping plants to road infrastructure. A comparative analysis is undertaken of the cascade control system of pump operation and the control system of pump operation by varying of rota...