CONTENTS CERTIFICATE 0 UNDERTAKING 0 ACKOWLEDGEMENTS 0 ABBREVIATIONS 0 GLOSSARY OF KEY TERMS 1 EXECUTIVE SUMMARY 0 TABLE OF CONTENTS 0 LIST OF TABLES 0 LIST OF FIGURES 0 1. INTRODUCTION 1 1.1 BACKGROUND 1 1.2 PROBLEM STATEMENT 2 1.3 PROPOSITION 3 1.4 OBJECTIVES 4 1.5 RESEARCH QUESTION 4 1.6 IMPORTANCE OF THE PRESENT RESEARCH 4 1.7 RESEARCH APPROACH, DESIGN AND METHODOLOGY 5 1.7.1 RESEARCH METHODOLOGY: 6 1.8 STRUCTURE OF DISSERTATION 7 2. LITERATURE REVIEW 9 2.1 TRAFFIC CONGESTION 9 2.2 THE THEORY OF TRANSPORT DEMAND MANAGEMENT 10 2.3 THE TRAGEDY OF COMMONS 12 2.4 ECONOMIC THEORY OF CONGESTION CHARGING 13 2.5 MEASURING CONGESTION 16 2.5.1 ENGINEERING APPROACHES 16 2.5.2 ECONOMIC APPROACHES 16 2.6 APPROACHES ADOPTED FOR CALCULATING MARGINAL CONGESTION COSTS 16 2.6.1 METHODS OF VOT ASSESSMENT 25 2.7 TYPES OF CONGESTION CHARGING 26 2.8 TECHNOLOGY 27 2.9 PRINCIPLES OF PRICING 29 2.9.1 USER PERSPECTIVE 29 2.9.2 TRAFFIC AUTHORITY PERSPECTIVE 29 2.9.3 SOCIETY'S PERSPECTIVE 30 2.9.4 BARRIERS TO IMPLEMENT CONGESTION PRICING 30 2.10 IMPACTS OF CONGESTION PRICING 30 2.11 CONGESTION PRICING PRACTICES TRIED AND ADOPTED WORLD WIDE AND TRAFFIC IMPACTS 32 2.11.1 SINGAPORE'S ROAD PRICING: 34 2.11.2 NORWEGIAN'S CORDON SYSTEMS 35 2.11.3 LONDON'S CONGESTION CHARGING 35 2.11.4 HONG KONG 37 2.11.5 NETHERLANDS 37 2.11.6 STOCKHOLM 38 3. RESEARCH DESIGN AND METHODOLOGY 39 3.1 QUALITATIVE RESEARCH 39 3.2QUANTITATIVE RESEARCH 40 3.3 RESEARCH METHODOLOGY 41 3.4 AREA DELINEATION 42 3.5 DATA COLLECTION 43 3.6 DETAILS OF SURVEYS 43 3.7 SURVEY DESIGN 43 3.7.1 GROUP DISCUSSION: 43 3.8 STATE PREFERENCE SURVEY DESIGN 46 3.9 DATA ANALYSIS 46 3.9.1 OBJECTIVE OF ANALYSIS: 46 3.10 ESTIMATION OF EXTERNAL COSTS 47 3.10.1 FUEL CONSUMPTION COSTS 47 3.10.2 POLLUTION EMISSION RATES 49 3.10.3 VALUE OF TIME ESTIMATION 51 3.11 ESTIMATION OF PRICE ELASTICITY OF DEMAND 52 3.12 ESTIMATION OF OPTIMAL PRICING LEVEL 52 3.12.1 OPTIMAL PRICING LEVEL TO RECOVER EXTERNAL COSTS 52 3.12.2 OPTIMAL PRICING LEVEL TO MAINTAIN A DESIRED LEVEL OF SERVICE 52 3.13 ESTIMATION OF REDUCTION IN TRAFFIC WHEN PRICING IS APPLIED 53 4. STUDY AREA PROFILE AND SCHEME DESIGN 57 4.1 HYDERABAD CITY PROFILE 57 4.1.1 TRANSPORT PROFILE 58 4.1.2 TRAFFIC FLOWS AND TRAVEL DEMAND 58 4.1.3 HYDERABAD ROAD NETWORK 60 4.1.4 VEHICULAR GROWTH AND COMPOSITION 61 4.1.5 MODAL SPLIT 62 4.1.6 PUBLIC TRANSPORT SYSTEM 62 4.2 THE TYPE OF CONGESTION CHARGING SYSTEM 65 4.3 DELINEATION OF CHARGING AREA 66 4.4 AREA PROFILE 71 5. DATA COLLECTION AND ANALYSIS 75 5.1 DATA COLLECTION SCHEME 75 5.2 AREA TRAFFIC PROFILE 76 5.3 USER SURVEY RESULTS: 77 5.3.1 TRAFFIC CHARACTERISTICS: 82 5.4 QUANTIFICATION OF EXTERNAL COSTS: 83 5.5 WILLINGNESS TO PAY 87 5.6 ESTIMATION OF OPTIMAL PRICING 89 5.6.1 TO NEUTRALIZE THE EXTERNAL COSTS 89 5.6.2 TO OPTIMIZE THE LEVEL OF SERVICE 92 6. IMPLEMENTATION OF THE SCHEME FOR HYDERABAD 97 6.1 CONSULTATION WITH STAKEHOLDERS 97 6.2 TECHNOLOGY, SYSTEM DESIGN AND MANAGEMENT: 98 6.3 CONCERNS IN IMPLEMENTATION 99 7. CONCLUSIONS AND RECOMMENDATIONS 103 7.1 RECOMMENDATIONS 106 7.2 FURTHER RESEARCH 107 8. BIBLIOGRAPHY 1 ANNEXURE I: USER SURVEY QUESTIONNAIRE 1 ANNEXURE II: VOLUME COUNT SURVEYS 1 ANNEXURE III: PEAK HOUR PCU AND LOS ON MAJOR ROAD STRETCHES IN THE AREA 1 ANNEXURE IV: SPEED FLOW RELATIONSHIP 2 ANNEXURE V: VARIATION OF TRAFFIC VOLUME TO OBSERVE THE VARIATION IN MARGINAL COST 4 ANNEXURE VI: QUESTIONNAIRE FORMAT FOR STAKEHOLDERS 7