Abstract
Tradable credits have been recognized as a powerful instrument and are increasing used in many fields. This paper employs the tradable credits scheme on traffic mobility management and private provision of public transportation infrastructure through a novel kind of private financing of public road: build-equity-credit (BEC) scheme, hoping to achieve a triple win. Namely, the government can achieve its objectives (e.g. construction of the new road, desired traffic condition, certain vehicle emissions threshold) without its own capital, the private firm can receive its expected profit with less public's resistance and the travelers can enjoy less congested traffic with a negligible cost. Moreover, many issues that occurred upon the termination of the traditional private financing (e.g. build-operate-transfer) scheme, such as severe congestion, explosion of travel demand and lack of management and maintenance, can be avoided in BEC. A general bi-level programming problem is formulated to model the determination of capacity of the new road and the tradable credits scheme in BEC scheme. The properties of several different BEC scenarios are investigated. Generally, the link service level in BEC is not constant but depends on multiple factors. Under some conditions, the total market value of the credits charged on the new link can offset its construction cost and the profit of the private firm can always be nonnegative.
| Original language | English |
|---|---|
| Pages (from-to) | 158-176 |
| Number of pages | 19 |
| Journal | Transportation Research Part A: Policy and Practice |
| Volume | 97 |
| DOIs | |
| Publication status | Published - 1 Mar 2017 |
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Keywords
- Build-equity-credit
- Link service level
- Mobility management
- Private financing
- Tradable credits
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Private financing and mobility management of road network with tradable credits. / Bao, Yue; Gao, Ziyou; Yang, Hai; Xu, Meng; Wang, Guangmin.
In: Transportation Research Part A: Policy and Practice, Vol. 97, 01.03.2017, p. 158-176.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - Private financing and mobility management of road network with tradable credits
AU - Bao, Yue
AU - Gao, Ziyou
AU - Yang, Hai
AU - Xu, Meng
AU - Wang, Guangmin
PY - 2017/3/1
Y1 - 2017/3/1
N2 - Tradable credits have been recognized as a powerful instrument and are increasing used in many fields. This paper employs the tradable credits scheme on traffic mobility management and private provision of public transportation infrastructure through a novel kind of private financing of public road: build-equity-credit (BEC) scheme, hoping to achieve a triple win. Namely, the government can achieve its objectives (e.g. construction of the new road, desired traffic condition, certain vehicle emissions threshold) without its own capital, the private firm can receive its expected profit with less public's resistance and the travelers can enjoy less congested traffic with a negligible cost. Moreover, many issues that occurred upon the termination of the traditional private financing (e.g. build-operate-transfer) scheme, such as severe congestion, explosion of travel demand and lack of management and maintenance, can be avoided in BEC. A general bi-level programming problem is formulated to model the determination of capacity of the new road and the tradable credits scheme in BEC scheme. The properties of several different BEC scenarios are investigated. Generally, the link service level in BEC is not constant but depends on multiple factors. Under some conditions, the total market value of the credits charged on the new link can offset its construction cost and the profit of the private firm can always be nonnegative.
AB - Tradable credits have been recognized as a powerful instrument and are increasing used in many fields. This paper employs the tradable credits scheme on traffic mobility management and private provision of public transportation infrastructure through a novel kind of private financing of public road: build-equity-credit (BEC) scheme, hoping to achieve a triple win. Namely, the government can achieve its objectives (e.g. construction of the new road, desired traffic condition, certain vehicle emissions threshold) without its own capital, the private firm can receive its expected profit with less public's resistance and the travelers can enjoy less congested traffic with a negligible cost. Moreover, many issues that occurred upon the termination of the traditional private financing (e.g. build-operate-transfer) scheme, such as severe congestion, explosion of travel demand and lack of management and maintenance, can be avoided in BEC. A general bi-level programming problem is formulated to model the determination of capacity of the new road and the tradable credits scheme in BEC scheme. The properties of several different BEC scenarios are investigated. Generally, the link service level in BEC is not constant but depends on multiple factors. Under some conditions, the total market value of the credits charged on the new link can offset its construction cost and the profit of the private firm can always be nonnegative.
KW - Build-equity-credit
KW - Link service level
KW - Mobility management
KW - Private financing
KW - Tradable credits
UR - http://www.scopus.com/inward/record.url?scp=85012240373&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85012240373&partnerID=8YFLogxK
U2 - 10.1016/j.tra.2017.01.013
DO - 10.1016/j.tra.2017.01.013
M3 - Article
VL - 97
SP - 158
EP - 176
JO - Transportation Research. Part A: Policy & Practice
JF - Transportation Research. Part A: Policy & Practice
SN - 0965-8564
ER -