COMPARISON OF TWO APPROACHES FOR SUSTAINABLE AND EFFICIENT TRANSPORTATION NETWORKS: EMISSION PRICING/EMISSION PERMITS

The purpose of this study is to propose three new schemes: static emission pricing (SEP), evolutionary emission pricing (EEP), and tradable emission permits (TEP), and analyze the conditions of the three schemes necessary to achieve the sustainable system-optimal (SSO) traffic assignment in a decentralized manner. In the SEP scheme, the road manager should estimate the traffic demand, which is difficult to observe, to reach an optimal solution to the SSO problem. In the EEP scheme, the road manager can find the appropriate Lagrange multiplier of the SSO problem through some trial-and-error adjustments to achieve the SSO assignment. In the TEP scheme, the road manager just sets the TEP market and keeps it competitive without doing anything. These processes imply that the SEP scheme is difficult to implement, the EEP scheme and the TEP scheme are the possible approaches to achieve the SSO assignment on the current status of our study.