Congestion pricing and optimal tolling: The importance of both locations and levels

Congestion is currently an ever growing problem for roadway networks all over the world. One solution, adding capacity, is not only expensive, but takes a very long time to complete. Therefore, demand of the roadways must be controlled so that the current infrastructure capacity can accommodate such demand. Congestion pricing is a tool which can help control demand and provide some relief to overcrowded networks. The purpose of this research is to explore congestion pricing as a solution to the congestion problem and create a framework for evaluating congestion pricing plans. The optimal tolling theory is applied to two small network examples and numerical results are presented. Also, the congestion pricing theory is applied to the Sioux Falls test network using the Frank-Wolfe algorithm to evaluate congestion pricing with deterministic route choice and VISSIM with stochastic route choice so that real impacts can be studied. From these experiments, the importance of tolling location and levels are clearly shown and a method for evaluating congestion pricing on predetermined links and at given levels is presented.