Faulín Fajardo, Javier
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Faulín Fajardo
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Javier
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Estadística, Informática y Matemáticas
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ISC. Institute of Smart Cities
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Publication Open Access Pricing and internalizing noise externalities in road freight transportation(Elsevier, 2017) Serrano Hernández, Adrián; Alvarez Indave, Pablo; Lerga Valencia, Iosu; Reyes-Rubiano, Lorena Silvana; Faulín Fajardo, Javier; Institute of Smart Cities - ISCPeople living close to main roads may suffer from the nuisance of traffic and noise pollution. This paper assesses the effect of full routing cost in vehicle routing decisions by internalizing the external cost of noise. On a first step, noise externalities are economically assessed through a contingent valuation procedure. Secondly, a novel methodology is proposed to allocate the external costs to the road network links. Results show significant differences in routing planning depending on the approach: minimization of traditional internal cost versus minimization of full cost. These results encourage further research in pricing and methodologies to internalize externalities.Publication Open Access Internalizing negative externalities in vehicle routing problems through green taxes and green tolls(Institut d'Estadística de Catalunya (Idescat), 2019) Serrano Hernández, Adrián; Faulín Fajardo, Javier; Institute of Smart Cities - ISCRoad freight transportation includes various internal and external costs that need to be accounted for in the construction of efficient routing plans. Typically, the resulting optimization problem is formulated as a vehicle routing problem in any of its variants. While the traditional focus of the vehicle routing problem was the minimization of internal routing costs such as travel distance or duration, numerous approaches to include external factors related to environmental routing aspects have been recently discussed in the literature. However, internal and external routing costs are often treated as competing objectives. This paper discusses the internalization of external routing costs through the consideration of green taxes and green tolls. Numeric experiments with a biased-randomization savings algorithm, show benefits of combining internal and external costs in delivery route planning.