SENSITIVITY OF PRICING POLICIES ON TRAFFIC CONGESTION AND EMISSIONS

The notion of sustainable development - a paradigm calling for the integration of economic, social, and environmental goals - has gained increasing importance in recent years. Within the transportation area, congestion and air pollution are two main negative externalities to be addressed. It is a real challenge for governments to set up policies to enable mobility while at the same time managing congestion and mitigating emissions at acceptable levels.. This study provides an analytical framework to analyze transportation pricing policies (tunnel tolling, fuel taxing, and emission taxing) for the purpose of congestion and pollution mitigation. To understand the effectiveness of different pricing policies, sensitivity analyses are conducted for a case study in Hong Kong.