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The aim of this paper is to model the impacts of competition between cities on both the optimal welfare generating tolls and upon longer-term decisions such as business and residential location choices. The research uses a dynamic land use transport interaction model of two neighbouring cities and analyses the impacts by setting up a game between the two cities to maximise the welfare of their own residents. The work builds on our earlier research which studied competition in a small network using a static equilibrium approach for private car traffic without accounting for the land use responses to the change in accessibility. This paper extends the earlier work by setting up a dynamic model which includes active modes of travel and the more usual car and public transport in a realistic twin city setting and assesses the longer term relocation responses. This paper firstly sets out the competition between two hypothetical identical cities i.e. the symmetric case; and then sets out the real world asymmetric case in which the cities are of different size representative of Leeds and Bradford in the UK but equally applicable elsewhere too. We found that the level of interaction between the two cities is a key determinant to the optimal tolls and welfare gains. Our findings show that the competition between cities could lead to a Nash Trap at which both cities are worse off in terms of welfare gains. On the other hand, we found that cities, if regulated, would gain in terms of welfare and yet charge only half the toll compared with tolls under competition. We then show that the effect of competition increases with increased interaction between cities. In terms of residential location, cities with higher charges benefit from an increase in residents, though as with other studies, the relative change in population in response to cordon charging is small. The policy implications are threefold-(i) while there is an incentive to cooperate at local authority level, this is not achieved due to competition; (ii) where cities compete they may fall into a Nash Trap where both cities will be worse off compared to the regulated solution; and (iii) regulation is recommended when there is a strong interaction between the cities but that the benefits of regulation decrease as interaction between cities decreases and the impact of competition is lessened. [ABSTRACT FROM AUTHOR]

Land use transport interaction models have been developed in various forms dating back to the early 1960s. They have moved from spatial interaction models or statistical models through econometric models to micro-simulation, cell-based automata and agent-based models. There has been a move towards more detail in representing space and individual behaviour. This paper presents an alternative approach which uses an intentionally developed strategic high-level model. Nevertheless this model still delivers comparable levels of statistical fit in terms of validation but is easy to present to decision makers and planners. The paper introduces the concepts behind the MARS model, deals with validation and transferability between cities and provides example applications. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper proposes an innovative approach for designing a road user charging scheme to meet multiple policy objectives. Three practical features are integrated into the design methodology including (i) cordon formation, (ii) a set of design constraints, and (iii) multiple objectives of the scheme. The methods also consider possible responses of road travellers to the charging scheme. Two methods based on genetic algorithms (GA) are developed for optimising a charging cordon scheme with constraints and with multiple objectives. The dynamic self-adaptive penalty GA and Non-dominated Sorting GA II (NSGA-II) are applied to the constrained design and multi-objective design respectively. The objective functions or constraints considered include social welfare improvement, revenue generation, and distributional equity impact. A case study of the City of Edinburgh is presented and common characteristics of charging cordon designs which perform well against the three objectives are discussed. [ABSTRACT FROM AUTHOR]

This paper looks at the first and second best jointly optimal toll and road capacity investment problems from both policy and technical oriented perspectives. On the technical side, the paper investigates the applicability of the constraint cutting algorithm for solving the second best problem under elastic demand which is formulated as a bilevel programming problem. The approach is shown to perform well despite several problems encountered by our previous work in Shepherd and Sumalee (Netw. Spat. Econ., 4(2): 161–179, ). The paper then applies the algorithm to a small sized network to investigate the policy implications of the first and second best cases. This policy analysis demonstrates that the joint first best structure is to invest in the most direct routes while reducing capacities elsewhere. Whilst unrealistic this acts as a useful benchmark. The results also show that certain second best policies can achieve a high proportion of the first best benefits while in general generating a revenue surplus. We also show that unless costs of capacity are known to be low then second best tolls will be affected and so should be analysed in conjunction with investments in the network. [ABSTRACT FROM AUTHOR]

Cities worldwide face problems like congestion or outward migration of businesses. The involved transport and land use interactions require innovative tools. The dynamic Land Use and Transport Interaction model MARS (Metropolitan Activity Relocation Simulator) is part of a structured decision making process. Cities are seen as self organizing systems. MARS uses Causal Loop Diagrams from Systems Dynamics to explain cause and effect relations. MARS has been benchmarked against other published models. A user friendly interface has been developed to support decision makers. Its usefulness was tested through workshops in Asia. This paper describes the basis, capabilities and uses of MARS. [ABSTRACT FROM AUTHOR]

European urban areas are marred by the problems of congestion and environmental degradation due to the prevailing levels of car use. Strong arguments have thus been put forward in support of a policy based on marginal cost pricing (European Commission 1996). Such policy measures - which would force private consumers to pay for a public service that was previously provided "for free" - are, however, notoriously unpopular with the general public and hence also with their elected representatives - the politicians. There is thus an obvious tension between economic theory, which suggests that marginal cost pricing is the welfare maximising solution to urban transport problems, and practical experience, which suggests that such pricing measures are unwanted by the affected population and hence hard to implement through democratic processes. The AFFORD Project for the European Commission has aimed to investigate this paradox and its possible solutions, through a combination of economic analysis, predictive modelling, attitudinal surveys, and an assessment of fiscal and financial measures within a number of case study cities in Europe. In this paper the methodology and results obtained for the Edinburgh case study are reported in detail. The study analyses alternative road pricing instruments and compares their performance against the theoretical first best situation. It discusses the effect of coverage, location, charging mechanism and interaction with other instruments. The paper shows that limited coverage in one mode may lead to a deviation from the user pays principle in other modes, that location is as important as charge levels and that assumptions about the use of revenues are critical in determining the effect on equity and acceptability. Finally the results show that a relatively simple smart card system can come close to providing the economic first best solution, but that this result should be viewed in the context of the model assumptions. [ABSTRACT FROM AUTHOR]

A new procedure for generating optimal transport strategies has been applied in nine European cities. A public sector objective function which reflects concerns over efficiency, environmental impact, finance and sustainability is specified and a set of policy measures with acceptable ranges on each, identified. Optimal strategies based on combinations of these policy measures which generate the optimal value of the objective function, are identified, and compared between cities. Resulting policy recommendations are presented. The results demonstrate the importance of an integrated approach to transport strategy formulation. They emphasise the role of changes in public transport service levels and of fares, and of charges for car use. By contrast, new infrastructure projects are less frequently justified. In the majority of cities the revenues from car use charges are sufficient to finance other elements in the strategy. However, private sector involvement either in initial financing or in operation may be desirable. Revised objective functions to reflect private sector involvement are specified, and optimal strategies with private sector operation of public transport are also identified. The requirement to meet private sector rates of return for public transport operation typically results in lower frequencies and higher fares; charges for car use then need to be raised to satisfy public policy objectives, but system performance is reduced. [ABSTRACT FROM AUTHOR]

Transport strategies have been developed for nine European cities toachieve optimum performance in terms of a range of objective functions. The functions selected represent economic efficiency, sustainability and a combination of these. The strategies have been based on combinations of a standard set of policy instruments, including public transport infrastructure, frequency and fares, road capacity increases, low cost road pricing and parking charges. The optimisation method is described, and results presented. The reactions of city authorities to the proposed strategies are discussed and implications for transport policy outlined. [ABSTRACT FROM AUTHOR]

Abstract: Integration as a principle in urban transport policy is frequently advocated but rarely defined. We suggest a range of types of integration, and highlight the problems in developing an effective integrated strategy, given the number of variables involved. We argue that integration should be designed to serve agreed objectives of transport policy, rather than being an objective in its own right. We then consider the principles for designing an effective integrated strategy. We define the concept of synergy, which is often advocated as a benefit of integration, and discuss whether it, and other aggregation benefits short of true synergy, is achievable. We then consider the alternative approach of using integration to overcome barriers, an approach, which is likely to be in conflict with pursuit of synergy, but more likely to lead to readily implemented strategies. We then review a number of examples where these principles have been applied, and investigate them to assess whether synergy has been demonstrated. Generally we find little evidence of synergy in outcome indicators. We conclude with some more general guidance on approaches to integration. [Copyright &y& Elsevier]