Smart Transportation Pricing (STP)

Key Facts

• In partnership with the city of Seoul, Connected Urban Development program is implementing a best practice Smart Transformation Pricing (STP) solution.  The aim of the initiative is to create infrastructure that makes traffic flows more efficient and lowers carbon emissions from road transformation.

• One of the key aims of the STP solution is to expose the true cost of road transportation and to apply a variable cost structure for the taxation and charging for its use. An example of this is a charge based on miles traveled which would replace the fixed and annual taxation charges. The expected benefits of this technology set include:

  • Reduction in Carbon emissions from personal vehicles
  • Decrease in the traffic load on the road system
  • Provides incentives for individuals to use more efficient forms of transportation
  • Encourages a modal shift from private/personal transportation to public transport services
  • Improves the overall efficiency of the existing road networks and therefore partly mitigates the need for increase to traffic carrying capacity

  The core components of the solution include:

  • Global positioning system (GPS)
  • Onboard Units – ie: units fitted to vehicles to monitor travel and provide feedback to the user
  • Mobility account which includes payment functionality/details
  • Operation centre
  • Wireless WIFI or WIMax technology base for communications
  • Road Side Units for the collection and transmission of data

  The pilot is ongoing and was started in 2007-2008

• The project took 12 months to implement
• The expected benefits of this technology set include:
  
  • Reduction in Carbon emissions from personal vehicles
  • Decrease in the traffic load on the road system
  • Provides incentives for individuals to use more efficient forms of transportation
  • Encourages a modal shift from private/personal transportation to public transport services
  Improves the overall efficiency of the existing road networks and therefore partly mitigates the need for increase to traffic carrying capacity.
  
  
• The actual (or projected) savings from the project are
  • Reduction in future capacity requirements on the road system (reduction of 13.7% in traffic volumes)
  • 5.56% improvement in the speed of vehicles
  • 5.13% reduction in overall travel time
  • 13.4% reduction in vehicle kilometer trips
• The primary sponsor for the project was Cisco’s Chairman and CEO John Chambers as a commitment to the Clinton Global Initiative, and as a core contribution to Cisco’s corporate social responsibility activities. The city of Seoul as a joint partner in the Connected Urban Development program has provided the leadership, direction and facilitation to make the pilot project successful.

What was the impact?

• Did you use a specific methodology or third party to calculate CO2e or KWh savings?

  The economic and environmental value case models use independently verified methodologies. In addition, the cities have commissioned independent analysis of a number of the projects.

• Comments on energy savings

  We have worked with Seoul Development Institute to develop a value case analysis of this pilot. The analysis integrates lessons from other pilots, such as Smart Work Centers, Personal Travel Assistant application, in the city of Seoul. Read the final report.
  

  A projected CO2 Emissions decrease of 176% is expected for vehicles involved in the scheme.
  

• Notes about Carbon savings/calculations

  Read further information (pdf) on the pilot value case findings, methodologies and approach.
  

• Comments on fuel savings

  The pilot has shown that the potential exists to create a 13.4% reduction in vehicle kilometers traveled this would result in a significant improvement in the overall fuel efficiency of the transportation network.

• Comments on Carbon or Energy savings

  The scheme has shown the potential for a reduction in PM10 by 17%.
• The project has independent verification for results

Making it Happen

• Barriers experienced during the initiation of the project

• Comments regarding barriers

  At the pilot stage, there were no barriers to implementation. However, wider application may run into barriers, including public acceptance to road pricing schemes.

• How were they overcome?

  This pilot has been developed on a technical basis. Development towards a commercial pilot is currently a political issue that the cities can progress towards making the case to citizens. The value case, architecture and potential for enhancing the mobility dynamics in cities has been set out.