Transport Management and Land Value

Abstract

The development of integrated transport supply and demand management (TS-DM) strategies is crucial for ensuring sustainable urban development. Any TS-DM strategy will not only affect the transport system performance, but also result in changes of the land use pattern. Moreover, implementing TS-DM strategies normally involves a progressively phased long-term schedule; one must take into account the total accruing costs and effects over time so as to optimize the system performance. This paper develops a mathematic optimization program with equilibrium constraints (MPEC) to study the impact of TS-DM strategies on transport system performance and activity location costs expressed as land value. Specifically, a bid-rent mechanism via the random utility approach is developed to model residential location choices. Finally, a numerical example is provided to compare among different strategies. Through this study, we hope to introduce promising planning perspectives to create win-win scenarios for both users and transport system managers.