An origin–destination based road pricing model for static and multi-period traffic assignment problems

To mitigate traffic externalities, we propose an origin–destination (OD) based road pricing model for traffic assignment problems. For elastic demand, we derive explicit optimal tolls for the OD-based pricing scheme. We also extend the model to a multi-period static traffic assignment (MSTA) where we derive analytically the route and OD-dependent tolls based on equilibrium conditions. We present some examples to show that the OD-based tolling scheme could improve the system welfare significantly, compared to the no-toll scenario (user equilibrium – UE).