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Lecture: José Holguín-Veras - Urban Delivery Indus try Response to Cordon Pricing, Time-Distance Pricing, and C arrier-Receiver Policies (UC Berkeley, 3/8)

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  • Asha Weinstein Agrawal
    ... From: ITS at UC Berkeley Date: Tue, Mar 5, 2013 at 9:16 PM Subject: [ITS] Friday Seminar - March 8th - José Holguín-Veras -
    Message 1 of 1 , Mar 6, 2013
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      From: ITS at UC Berkeley <its.fridayseminar@...>
      Date: Tue, Mar 5, 2013 at 9:16 PM
      Subject: [ITS] Friday Seminar - March 8th - Jos� Holgu�n-Veras - Urban
      Delivery Industry Response to Cordon Pricing, Time-Distance Pricing,
      and Carrier-Receiver Policies

      * Friday Transportation Seminar Series *

      Friday, March 8th 2013

      4 - 5 p.m. in 502 Davis Hall, UC Berkeley

      Jos� Holgu�n-Veras, Ph.D.
      William H. Hart Professor
      Department of Civil and Environmental Engineering
      Rensselaer Polytechnic Institute

      Urban Delivery Industry Response to Cordon Pricing, Time-Distance
      Pricing, and Carrier-Receiver Policies:
      Theory and the Off-Hour Delivery Project in the Big Apple

      Abstract: The presentation discusses the economic foundations of
      congestion pricing, its potential use for freight demand management,
      and the associated limitations. The paper on which the presentation is
      based develops a set of analytical formulations to study the behavior
      of the urban delivery industry in response to cordon time-of-day
      pricing, time-distance pricing, and comprehensive financial policies
      targeting carriers and receivers. This is accomplished by modeling the
      behavior of receivers in response to financial incentives, and the
      ensuing behavior of the carrier in response to both pricing and the
      receiver decisions concerning off-hour deliveries. The analytical
      formulations consider both the base case condition, and a mixed
      operation with both regular hour and off-hour deliveries; two pricing
      schemes: cordon time of day, and time-distance pricing; two types of
      operations: single tour, and multi-tour carriers; and three different
      scenarios in terms of profitability of the carrier operation, which
      include an approximation to the best case, the expected value, and the
      worst case. The analyses, both theoretical and numerical, highlight
      the limitations of pricing-only approaches. In the case of cordon time
      of day pricing, the chief conclusion is that it is of limited use as a
      freight demand management tool because: (1) in a competitive market
      the cordon toll cannot be transferred to the receivers as it is part
      of the fixed costs; and (2) the structure of the cost function, that
      does not provide any incentive to the carrier to switch to the
      off-hours. The analyses of time-distance pricing clearly indicate
      that, though its tolls could be transferred to the receivers and
      provide an incentive for behavior change, the magnitude of the
      expected toll transfers under real life conditions are too small to
      have any meaningful impact on receivers choice of delivery times. In
      essence, the key policy implication is that in order to change the
      joint behavior of carrier and receivers, financial incentives should
      be provided to receivers in exchange for their commitment to do
      off-hour deliveries. As the paper proves, if a meaningful number of
      receivers switch to the off-hours, the carriers are likely to follow
      suit. The concept outlined by this research was successfully pilot
      tested in New York City, receiving great praise from the business
      community as a business friendly way to improve sustainability of
      urban deliveries. Because of this success, it is being considered for
      full implementation in Manhattan.

      An earlier version of this research was presented as a plenary lecture
      of the International Transportation Economics Conference in
      Minneapolis, Minnesota 2009.

      Bio: Dr. Jos� Holgu�n-Veras is the William H. Hart Professor, and
      Director of the Center for Infrastructure, Transportation, and the
      Environment; and the Volvo Research and Educational Foundations�
      Center of Excellence on Sustainable Urban Freight Systems at the
      Rensselaer Polytechnic Institute. He received his B.Sc. in Civil
      Engineering, Magna Cum Laude, from the Universidad Aut�noma de Santo
      Domingo, Dominican Republic, in 1981; his M.Sc. from the Universidad
      Central de Venezuela in 1984; and his Ph.D. from The University of
      Texas at Austin in 1996. He has been a faculty member at California
      Polytechnic State University - San Luis Obispo, The City College of
      New York (1997-2002), and Rensselaer Polytechnic Institute

      He has received numerous awards, including: CAREER Award from the
      National Science Foundation (2001-2006); the Milton Pikarsky Memorial
      Award in 1996, from the Council on University Transportation Centers,
      the Salute to the Scholars Award from the City University of New York
      (in 2000 and 2001); the 2006 Robert E. Kerker Research Award in
      recognition of Excellence in Research of Special Importance to
      Practitioners and Scholars of Public Administration and Policy in New
      York State; the 2007 School of Engineering Research Award; and a
      Proclamation from the Council of the City of New York (2001).

      Please join us for a TRANSOC-sponsored Cookie Hour in the ITS Library
      at 3:30 PM.

      [Non-text portions of this message have been removed]
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