OPTIMAL PEAK-LOAD PRICING, INVESTMENT, AND SERVICE LEVELS ON URBAN EXPRESSWAYS

Optimal tolls, capacities, and service levels for highways can be determined jointly by way of an integrated peak-load pricing model. In this paper, such a model is developed and estimated with data for roads in the San Francisco Bay Area. The results suggest optimal peak user tolls of 2-7 cents per automobile mile on rural highways, 2-9 cents on suburban highways, and 6-35 cents on central city highways. Although our results are to some degree dependent on the interest rate, time value, and peak demand configuration assumed, one basic conclusion holds up under all alternative assumptions: current user charges are well below optimal peak tolls. However, our results also suggest considerably higher rush-hour speeds than currently prevail on Bay Area roads, and the lower travel time costs suggested by our analysis (relative to the current situations) should to some degree offset the corresponding higher user charges.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00223808
• Corporate Authors:

  University of Chicago Press

  1427 E. 60th Street
  Chicago, IL  United States  60637-2954
• Authors:
  • Keeler, T E
  • Small, K A
• Publication Date: 1977-2

Media Info

• Features: References;
• Pagination: p. 1-25
• Serial:
  • Journal of Political Economy
  • Volume: 85
  • Issue Number: 1
  • Publisher: University of Chicago Press
  • ISSN: 0022-3808

Subject/Index Terms

• TRT Terms: Highway capacity; Investments; Level of service; Mathematical models; Optimization; Peak hour traffic; Present value; Prices; Rural highways; Speed; Tolls; Travel budgets; Travel costs; Travel time; Urban highways; User charges
• Uncontrolled Terms: Models; Value
• Subject Areas: Finance; Highways;

Filing Info

• Accession Number: 00151952
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 31 1977 12:00AM