Lexicographic multi-objective road pricing optimization considering land use and transportation effects

ABSTRACT This paper develops a bi-level multi-objective model for road pricing optimization considering land use and transportation effects. The upper-level problem determines a cordon-based road pricing scheme, while the lower-level problem models the interaction between land use and transportation. To facilitate decision-making in a scenario characterized by a hierarchical ordering of objectives, a novel α-conditional lexicographic optimization method is established, which uses an α value to capture the decision-maker's perceived acceptability of the trade-off between different objectives with respect to the hierarchical objective ordering. The properties associated with this approach are derived, and an algorithm to find the α-conditional lexicographic dominance solutions is developed. To solve the model, a revised genetic algorithm is further developed to illustrate how the proposed α-conditional lexicographic optimization method can be embedded into existing heuristic or metaheuristic methods. A case study using data from Jiangyin, China, demonstrates the significance of considering land use effects when evaluating road pricing scenarios. The results reveal the trade-off between transportation and various land use objectives and the variation of such a trade-off among different types of traffic analysis zones. It is demonstrated that the proposed α-conditional lexicographic approach can improve most of the land use objective values while ensuring that the total travel time is constrained within an acceptable range, enabling a balance between various land use and transportation objectives.