Analyzing the Effects of Transport Demand Management Measures Using the Concept of Compensating Variation

To cope with traffic congestion in urban areas, transport demand management(TDM) measures which aim to reduce or redistribute transport demand have been proved to be effective. For successful implementation of TDM measures, it is important to evaluate the effects well before they are put into practice. It is often found that conflicts between different interest groups of travelers appear to be barrier to the successful implementation. The purpose of this paper is to analyze various effects of TDM measures. Two effects, welfare effects(equity) and transport efficiency were estimated. Values of modal share and travel time were calculated as indicators of transport efficiency. Compensating variation(CV) value was calculated as indicator of equity effects. A logit based demand model combined with a network based model was built to estimate the change of modal share and travel time. CV value was estimated using a discrete choice legit model for three income levels (low, medium and high). A case study was carried out to validate the feasibility of the model developed in this study. The behaviors of travelers commuting to CBD area in Seoul were surveyed. The effects of TDM measures such as congestion pricing, fuel taxing, bus-exclusive lanes and vehicle use restriction were analyzed.