Managing congestion and emissions in road networks with tolls and rebates

Traffic congestion and emissions are two main types of social cost, and their minimization sometimes conflicts with each other. In this paper we seek nonnegative link toll schemes and/or link toll cum rebate schemes for Pareto‐efficient control and management of both vehicular congestion and emissions on road networks using a bi‐objective optimization approach. We provide necessary and sufficient conditions for the existence of such schemes to decentralize a given target link flow pattern. Then, we investigate the possibility of introducing such schemes to obtain specific Pareto system optimum target link flow patterns with two types of link emission function: increasing functions and non‐monotonic functions, respectively.