The optimal cost allocation for urban transport management

Several researchers have discussed the grounds for higher priority of investment in urban mass transit systems within the context of the Downs-Thomson's paradox. The optimal cost allocation of the introduction of a new transit system between urban transports users were, examined as the second best pricing problem constrained by the binary mode choice/assignment model and the restriction of the CO2 discharge in the urban transport network in Gifu city. The results are that the effects of introducing a guide-way bus system are limited in the city because its urban transport system is inclined to very heavy automobile use. However, charging for automobile use is possible. Furthermore, if the public transport agency that operates the guide-way bus system were to be subsidized by profits from automobile charge substitutable transport modes could be made available economically for automobile users. This combination policy is the most effective way to transfer urban transport demand from automobiles to the public transport system.