Optimal Pricing of Urban Passenger Transport (A Case Study: Isfahan City)

In this study proposes an approach for pricing the urban transportation with the consideration of its external costs. This model is a static partial equilibrium model of urban transportation that incorporates three transport modes: private car, public transportation and taxi. The public transportation mode is an urban bus system operated by the public authority. The proposed model in this study is implemented using data set of Isfahan transportation network and the results are presented. The results of the research show that the optimal price of travel by private car is 851/67, while the optimal price of public transportation and taxi, in respect, are 129/31 and 1876/52. Considering to the results of the research, the optimal pricing will cause an increase in transportation prices of private car and taxi and also a decrease in price of travel by public transportation, in comparison to current prices.