Analysis of optimal BOT highway capacity and economic toll adjustment provisions under traffic demand uncertainty. (April 2017)

• Record Type: Journal Article
• Authors: Lu, Zhaoyang; Meng, Qiang
• Is Part Of: Transportation research. Volume 100(2017)
• Page Start: 17
• Page End: 37
• Publication Date: 2017-04
• Subjects: Build-operate-transfer -- Highway capacity -- Economic toll adjustment -- Traffic demand uncertainty -- Two-stage stochastic programming model; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2017.01.007
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: A rigid BOT highway contract with fixed capacity and ETA provisions is studied under traffic demand uncertainty. A two-stage stochastic programming model is developed for the ETA-type contract in aspects of the government and private firms, respectively. Properties of the ETA-type contract are deeply analyzed and compared with two other "very rigid" single-stage BOT contracts. Abstract: For planning a build-operate-transfer (BOT) highway, a rigid contract between a government and private firms with fixed capacity and economic toll adjustment (ETA) provisions to traffic demand variations is practically adopted to cope with the risk caused by uncertain traffic demand. This study develops a two-stage stochastic programming model to determine its optimal highway capacity and ETA strategy, and deeply analyze some insightful properties of this type of contract. Finally, it is compared with two other "very rigid" single-stage BOT contracts with the fixed toll and capacity provisions.