Economic analysis for a toll facility Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/sq87bx990

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  • This thesis presents an economic analysis for a proposed toll road which is to separate different types of traffic such as pedestrians, slow speed vehicles and high speed motor vehicles, and to divert through traffic from the local roads. The use of a toll road usually provides significant savings in vehicle running costs, travel time costs, accident costs, and reduces driving strains and annoyances. A four-lane highway with a total length of 18.64 miles was designed as a 60 mph speed facility to divert through traffic. To find the lowest toll rates which will provide sufficient revenues to cover the construction costs, maintenance costs and operating costs of this toll road, and which will maximize the usage of the facility, it is necessary to determine the appropriate demand and the average variable cost (price-volume) functions, in addition to facility costs (construction costs). These cost functions and demand functions were linearized for use in a linear program. For these illustrative cost and demand data, the toll pricing problem was programmed, using a linear programming (LP) formulation, and run on an electric computer. It was found that it would be feasible to construct this proposed toll road in the future and develop adequate usage and retain reasonable toll rates.
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