Evaluating the Willingness to Pay for Urban Congestion Priced Zones (Case Study of Tehran)

Document Type: Research Paper

Authors

1 Sebelas Maret University, Indonesia

2 Professor, Department of Civil and Environmental Engineering, Tarbiat Modares University, Iran

3 Assistant Professor, Department of Civil and Environmental Engineering, Tarbiat Modares University, Iran

4 PhD, Faculty of Business Economics, Hasselt University, Belgium

Abstract

Congestion pricing is one of the major travel demand management policies to reduce traffic volumes in metropolitans. One of the main factors for effective implementation of this policy is to analyze users' response to different toll rates. In this paper, the willingness of users to pay for using their personal cars is evaluated. The stated preference method was applied for data gathering. Several pricing scenarios are developed for analyzing the willingness to pay of users, under different scenarios. Travelers’ socio – economic characteristics as well as their trip chains and their mode choice according to different pricing scenarios are gathered by means of a questionnaire that was filled out by more than 4000 respondents. A binary logit model is applied to model choice behavior of users against different price scenarios. Results show that with 50000 Rials[i] toll for Tehran CBD[ii] area; 27 percent of users will use their personal cars for entering the congestion priced area. This rate is reduced to 7 percent if the toll increases to 200000 Rials. Keywords: Congestion pricing, stated preference method, modal split models
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