An integrated model for road capacity choice and cordon toll pricing

In this paper, an analytical model is proposed to address, road capacity choice and cordon toll pricing issues for an urban transportation corridor. In the proposed model, the road capacity, toll location and level are considered as decision variables, and the effects of self-financing and subsidy constraints on these variables are explored. It has been shown in the numerical studies that the self-financing requirement can lead to a decreased social welfare, and subsidies in certain ranges are welfare improving. Results also show that subsidy increments yield disproportionately smaller welfare improvements, which is a sign of low efficiency. (C) 2017 Elsevier Ltd. All rights reserved.