Congestion toll pricing and commercial land-use: clients' and vendors' perspective

Abstract

This study outlines the effects of congestion toll pricing on commercial land-uses (CLUs) through studying the temporary and permanent impacts of client behavior on the CLUs. In the case study of Tehran metropolis, Iran's capital, which has experienced congestion pricing for more than four decades, both clients and vendors' viewpoints were modeled using discrete choice models. Two types of questionnaires were provided to evaluate clients' and vendors' behavior in response to the traffic congestion zone charges. The clients of three businesses, including garments, electronics, and home appliances, were more sensitive to toll price changes. A 20-percent increase in toll prices led to a substantial client loss in the above businesses in the long run due to accessibility decrease in their utility function. Consequently, the vendors preferred to change their approach and sell different goods; then, they gradually tended to migrate outside of the congestion zone.