In this paper a sensitivity analysis method for integrated location/transport models is developed, based on which optimization algorithms are provided for the design of optimal tolls and location-specific housing taxes in order to maximize some social welfare function. This method is illustrated with a specific residential location/transport model. The marginal cost pricing schemes and the optimization based pricing schemes are compared in a numerical example. It is shown that the optimization method can be used to find optimal pricing patterns that are different from the marginal cost pricing scheme but yield the same optimality.(A) Reprinted with permission from Elsevier. For the covering abstract see ITRD E134766.
Abstract