Designing Cross-Subsidy Mechanisms for Multi-Modal Transportation Systems

Abstract

This project focuses on the development of modeling tools to support the design of cross-subsidy mechanisms in multi-modal passenger transportation networks by integrating road congestion pricing and multi-modal transportation services design. The modeling tools will explicitly include the environmental impacts (including downstream health impacts) as well as economic and equity impacts in defining how these cross-subsidy mechanisms are designed. Despite large investments in passenger transportation infrastructure, congestion has increased at an alarming pace and at substantial societal costs. Congestion was estimated to cost $124 billion in 2013 and to rise to about $186 billion by 2030. Empirical evidence demonstrates that public transit is effective in alleviating congestion as well as the environmental impacts that result from congestion. What’s more, public transportation is the mode that provides access to jobs, goods and services that are critical to economic mobility for those on the lower rungs of the economic ladder.