RETRACTED ARTICLE: The economic and financial effects on the electronic toll collection freeway by adopting the scheme of the peak and the off-peak periods tolls

Dun Ji Chen*, Ting Shun Lai

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This study is aimed to explore the topic of discrimination of "Pricing on Peak and Off-peak Periods (PPOP)" in the national freeway Electronic Toll Collection (ETC) for the government cooperated with the private sector, in order to achieve the goal of financial self-liquidating. Fist, this study established the demand model, total variable cost function, and the benefit function. Second, while the PPOP scheme was adopted on the freeway, the user's switching probability was combined in the above demand model. The standpoint of the financial breakeven also was employed in the financial model of the PPOP. Furthermore, the optimal freeway tolls and the payback periods are further estimated under the objective of maximum social welfare. The empirical results show that the basic toll (i.e. the offpeak period pricing) based on the PPOP is lower 13%∼28% than that without the PPOP. However, by adapting the strategy of PPOP the period of pay-back will be reduced about 4-8 year. Finally, the result shows that under the same financial conditions, the level of social welfare of the toll of PPOP will have more 3.2%-8.6% than those of the constant toll. This means the toll of PPOP posses the significant economic benefit.

Original languageEnglish
Title of host publication2011 International Conference on E-Business and E-Government, ICEE2011 - Proceedings
PublisherIEEE Computer Society
Pages7467-7470
Number of pages4
ISBN (Print)9781424486946
DOIs
Publication statusPublished - 2011
Externally publishedYes

Publication series

Name2011 International Conference on E-Business and E-Government, ICEE2011 - Proceedings

Keywords

  • Electronic Toll Collection
  • Self-liquidating
  • Social Welfare
  • Toll pricing of peak and off-peak periods

ASJC Scopus subject areas

  • Business and International Management

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