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Urban Transportation Management -

Capacity Change Effects


Dr. Muhammad Adnan
Rebound Effect
• A Rebound Effect (also called a Takeback Effect or Offsetting Behavior) refers to
increased consumption that results from actions that increase efficiency and
reduce consumer costs (Alexander 1997; Herring 1998; Gorham 2009; UKERC
2007).

• Example, a home insulation program that reduces heat losses by 50% does not
usually result in a full 50% reduction in energy consumption, because residents of
insulated homes find that they can afford to keep their homes warmer. As a result,
they reinvest a portion of potential energy savings on comfort. The difference
between the 50% potential energy savings and the actual savings is the Rebound
Effect.

• Example 2, strategies that increase fuel efficiency or reduce traffic congestion, and
therefore reduce the per-mile cost of driving, tend to increase total vehicle
mileage. Similarly, strategies that make driving seem safer tend to encourage
somewhat more “intensive” driving (i.e., faster, closer spacing between vehicles,
more distractions) than what would occur if vehicle use appears riskier to drivers.
Understanding Rebound Effects
• HOW WE DRIVE; Roads Are Safer; Cars Are Safer. Drivers? Forget It.
• Dr. Evans, who is the president of the International Traffic Medicine Association, contends
that so-called safety devices in cars, particularly air bags, have had an insidious and deadly
effect on driver behavior.

• He said that since the mid-60’s, American have spent billions of dollar seeking the perfect
technological fix to prevent fatalities. Their solutions, the air bag and other “passive” devices,
have only compounded the problem. Other industrial nations, Dr. Evans said, have pursued a
more balance approach -- better and early driver education, stricter enforcement of traffic
and seat-belt laws, use of cameras to detect speeding and red-light running and campaigns
against aggressive driving.

• Dr. Evans said that the air bag and other safety devices had the same effect collectively as
advances in cardiac medicine. Angioplasty and bypass surgery have not decreased the rate of
death from heat disease, he said and might have convinced people that there is a
technological “cure” for the unhealthy behaviors that lead to heart attacks.

• “We see American collectively driving a couple of miles an hour faster because of a false
sense of security,” he said. “And that collective increase in speed more than washes away the
alleged benefit of air bags.”
Transportation Rebound Effects
• Generated Traffic:

Generated traffic is the additional vehicle travel that results from a


road improvement. Congested roads cause people to defer trips that
are not urgent, choose alternative destinations and modes, and
forego avoidable trips.

Generated traffic consists of diverted travel (shifts in time and


route) and induced travel (increased total motor vehicle travel). In
some situations, highway expansion stimulates sprawl (automobile-
dependent, urban fringe land use patterns), further increasing per
capita vehicle travel. If some residents would otherwise choose less
sprawled housing locations, their additional per capita vehicle travel
can be considered to be induced by the roadway capacity expansion.
Examples
• Below are examples of decisions that generate traffic:

• Consumers choose closer destinations when roads are congested and


further destinations when traffic flows more freely. “I want to try the new
downtown restaurant but traffic is a mess now. Let’s just pick up
something at the local deli.” This also affects long-term decisions. “We’re
looking for a house within 40-minute commute time of downtown. With
the new highway open, we’ll considering anything as far as Midvalley.”

• Travelers shift modes to avoid driving in congestion. “The post office is only
five blocks away and with congestion so bad this time of day, I may as well
walk there.”

• Longer trips may seem cost effective when congestion is light but not
when congestion is heavy. “We’d save $5 on that purchase at the Wal-
Mart across town, but it’s not worth fighting traffic so let’s shop nearby.”
• Traffic grows when roads are uncongested, but the growth rate declines as
congestion develops, reaching a self-limiting equilibrium (indicated by the
curve becoming horizontal). If capacity increases, traffic grows until it
reaches a new equilibrium. This additional peak-period vehicle travel is
called “generated traffic.”
Types of Generated Traffic
• Roadway expansion impacts tend to include:

• First order. Reduced congestion delay, increased traffic


speeds.
• Second order. Changes in travel time, route, destination
and mode to take advantage of the increased speeds.
• Third order. Land use changes. More dispersed,
automobile-oriented development.
• Fourth order. Overall increase in automobile dependency.
Degraded walking and cycling conditions, reduced public
transit service quality and reduced respect for alternative
modes.
Case Studies
• Several studies using various analysis techniques have examined the
amount of traffic generated by specific projects (Goodwin 1996).
Their findings are summarized below:

• Cervero (2003a & b) used data on freeway capacity expansion,


traffic volumes, demographic and geographic factors from California
between 1980 and 1994. He estimated the long-term elasticity of
VMT with respect to traffic speed to be 0.64, meaning that a 10%
increase in speed results in a 6.4% increase in VMT, and that about
a quarter of this results from changes in land use (e.g., additional
urban fringe development). He estimated that about 80% of
additional roadway capacity is filled with additional peak-period
travel, about half of which (39%) can be considered the direct result
of the added capacity.
• Time-series travel data for various roadway types indicates an elasticity of
vehicle travel with respect to lane miles of 0.5 in the short run, and 0.8 in
the long run (Noland 2001). This means that half of increased roadway
capacity is filled with added travel within about 5 years, and that 80% of
the increased roadway capacity will be filled eventually. Urban roads,
which tend to be most congested, had higher elasticity values than rural
roads, as would be expected due to the greater congestion and latent
demand in urban areas.

• A study by leading U.K. transportation economists concludes that the


elasticity of travel volume with respect to travel time is -0.5 in the short
term and -1.0 over the long term (SACTRA 1994). This means that reducing
travel time on a roadway by 20% typically increases traffic volumes by 10%
in the short term and 20% over the long term.
Portion of new capacity Absorbed by
Induced Traffic
• This illustrates traffic growth on a road after its capacity increases.
About half of added capacity is typically filled with new traffic
within a decade of construction. (Based on cited studies)
Wrong estimation of benefits
• In a case study of a proposed roadway expansion project in Copenhagen,
Denmark, Næss, Nicolaisen and Strand (2012) found that ignoring a portion of
induced traffic effects significantly affected cost-benefit results: results show lower
travel time savings, more adverse environmental impacts and a considerably lower
benefit-cost ratio when induced traffic is partly accounted for than when it is
ignored.

• They conclude that, “By exaggerating the economic benefits of road capacity
increase and underestimating its negative effects, omission of induced traffic can
result in overallocation of public money on road construction and correspondingly
less focus on other ways of dealing with congestion and environmental problems
in urban areas.”

• This is not to suggest that increasing road capacity provides no benefits, but
Generated Traffic affects the nature of these benefits. It changes congestion
reduction benefits into mobility benefits, offset by any increase in external costs
associated with the induced traffic (Ramsey 2005).
What to do for solving congestion?
• In order to truly reduce urban traffic congestion it is necessary to reduce the point of congestion
equilibrium. Some types of TDM strategies do this (Congestion Reduction Strategies).

· Pricing strategies with higher charges for driving under urban-peak conditions, such as Congestion
Pricing and variable Parking Pricing.

· Strategies that increase the price of driving, such as Parking Pricing and Distance-Based Charges.

· Strategies that make alternative modes more competitive, such as HOV Priority, Transit
Improvements and Commuter Financial Incentives.

· Strategies that improve land use Accessibility, such as Location Efficient Development and Smart
Growth.

A single TDM strategy is unlikely to have a major effect on overall regional traffic congestion,
but a comprehensive TDM program that includes a combination of disincentives to peak-
period driving and improvements to alternative modes may reduce the point of congestion
equilibrium. A TDM program that is implemented instead of a road capacity expansion
project will avoid generating traffic, since congestion levels stay the same.
Generated Traffic Impacts

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