A discrete-convex programming approach to the simultaneous optimization of land use and transportation

Three design problems are discussed in this article. First, it is shown that the network design problem with congestion reduces to an all-or nothing traffic assignment problem under some assumptions on the congestion function and the investment cost function. Second, the land use design problem is formulated as an extension of the Koopmans-Beckmann problem and a heuristic is proposed to solve this problem. Third, it is shown that the seemingly more complex problem of designing jointly a land-use plan and a transportation network reduces to a pure land-use design problem. All that is needed to solve the joint optimization problem is a shortest path algorithm and a heuristic to solve the land use design problem. Computational experience is reported for each algorithm.