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Tradable emissions credits for personal travel: a market-based approach to achieve air quality standards

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Abstract

This research mathematically investigates revenue neutral tradable credit schemes that can redistribute the link flow patterns to obtain least emissions for the network. The trade-off between travel time and emissions is accommodated through Pareto optimal solutions from a bi-objective problem. Further, tradable credit schemes with minimum transaction are also proposed. Numerical examples show how to obtain tradable credit schemes defining the amount of credits to be charged for each link to attain minimum emissions flow patterns.

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Correspondence to Satish V. Ukkusuri.

Appendix A: Illustration of mobility credit

Appendix A: Illustration of mobility credit

We solve the system optimal problem for the network in Fig. 3 and compute the tolls for each link. Assume, value of time as unity. Now, the 4th column constitutes the vector π and \(\Uppi = 14521.49159\) as the sum of π a x a . With this \((\pi, \Uppi)\) we solve (5) and (6) and exactly the same flow pattern is obtained as shown in the above table (Table 7).

Table 7 Results from SO (travel time) problem

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Abdul Aziz, H.M., Ukkusuri, S.V. Tradable emissions credits for personal travel: a market-based approach to achieve air quality standards. Int J Adv Eng Sci Appl Math 5, 145–157 (2013). https://doi.org/10.1007/s12572-013-0092-4

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