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Optimal pricing and design of a bus corridor : analyzing the social welfare

Espinoza Daquilema, C.E. (2025) Optimal pricing and design of a bus corridor : analyzing the social welfare.

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Abstract:This study investigates the relationship between congestion and environmental externalities in the design of urban bus systems using a multimodal social welfare maximization model in the city of Enschede, the Netherlands. The model allows users to choose between taking a bus, driving a car, walking, or taking the bike inside a transportation corridor, while optimizing variables bus fare, congestion toll, bus frequency, and bus size. In addition to congestion, this study looks at environmental externalities and how they affect sustainable urban mobility. The transition from private cars to public transportation dramatically reduces carbon emissions and pollution levels along the corridor, cutting the externality costs associated with motorized mobility. However, increased bus frequency leads to environmental externalities, especially for conventionally fueled buses. This emphasizes the importance of electrification techniques, better energy sources, and effective bus fleet management in balancing service gains with environmental effects. Furthermore, the use of bicycles and walking contributing to environmentally friendly and sustainable mobility. These two modes of transportation produce no externalities or pollution and are cost-free, making them particularly attractive for shorter distances, as highlighted in this study. The findings highlight the need of considering long-term environmental sustainability in addition to passenger preferences and congestion management when optimizing public transportation systems. Implementing pricing regulations for buses and cars, increasing the frequency by including externalities in optimal designs can greatly improve urban mobility systems, making them more efficient and environmentally responsible.
Item Type:Essay (Master)
Faculty:ET: Engineering Technology
Subject:56 civil engineering
Programme:Civil Engineering and Management MSc (60026)
Link to this item:https://purl.utwente.nl/essays/106070
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