Network Model for Rural Roadway Tolling with Pavement Deterioration and Repair

The objective of roadway tolling in rural areas is often tied to revenue generation for roadway maintenance. Thus, rural pricing models should directly incorporate a pavement deterioration and maintenance model. However, the interactions between these models are not simple, because tolls cause traffic diversion, which in turn affects deterioration rates and forecasted revenue. This article describes a rural pricing model which calculates diversion endogenously with a network assignment model. This model captures deterioration rates and pavement condition in the toll‐setter's objective function, maximizing long‐run net present value of the highway infrastructure. A novel deterioration model is used which is particularly suitable for computational efficiency. The resulting model is discontinuous and nondifferentiable, and involves solving a combinatorial knapsack problem as a subproblem. Thus, a simulated annealing‐based algorithm is presented to solve it, in the framework of a new solution method built upon partitioning the feasible region. A demonstration is made using a network representing the state of Wyoming (28 zones, 60 nodes, and 188 links). Sensitivity analyses reveal that although the locations for optimal tolling are relatively stable as demand changes, the revenue collected can vary substantially. Relatively simple models are used throughout for computational reasons, and future research should investigate strategies for incorporating more advanced pavement and network models.