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123
System Dynamics Simulation Modeling
of Transportation Engineering, Energy,
and Economy Interaction
for Sustainability
Abstract India’s crude oil import is growing phonemically and is likely to grow
more, thereby posing a major threat to the economy of the country. A robust policy
direction is a need of the hour. Since there is a lack of study in analyzing the inter-
relationship among the sectors of transportation, energy, and economy, this research
work is aimed at performing an in-depth study of these sectors by considering the
parameters such as vehicular population, model split, fuel consumption, and fuel
costs. System dynamic (SD) simulation models are built using the STELLA soft-
ware, and these parameters are forecasted for the future years until 2026. In this
research work, when the existing trend of growth rate for these sectors was assumed
to continue over a horizon year (2026), it was found that a large part of the economy
is being spent for meeting the energy demands. So SD simulation models are built
in which a scenario of increasing the growth rate of public transportation and at the
same time curbing the growth rate of personalized transportation with a modal split
value between the both as 70:30 showed a considerable decrease of 29.49% in fuel
consumption and 58.04% in fuel cost. This modal split under the desirable scenario
has resulted in a savings of 14,629 crore rupees for the horizon year in the road
transport sector for Chennai city, India. Finally, this study recommends that in order
to achieve sustainability in the city, the model split between public and personalized
modes of transportation has to be paid crucial attention.
S. Singh (B)
National Institute of Technology Tiruchirappalli, Tiruchirappalli 620015, India
e-mail: sandeepsingh.nitt@gmail.com
G. Uma Devi
College of Engineering Guindy, Anna University, Chennai 600025, India
e-mail: gudevi@annauniv.edu
1 Introduction
The critical relationship between transportation, energy, and economy comes into
picture as one takes into account the exact importance of transportation for economic
growth in which the energy sector is also involved and plays an equal role similar to
the transportation sector and economy sector. The economy sector plays a vital role
in performing the balance between the transportation sector and the energy sector.
Hence, it could be said that the energy sector drives the transportation sector, whereas
the transportation sector drives the economic sector. Altogether, it can be reasoned
that the transportation sector and energy sector are like the balancing wheels of each
other for driving the economy sector of any country.
Any unbalance in the transportation and energy sector could cause an unforeseen
effect in the economy sector. This may result in significant losses to the country in
the form of intangible monetary values. The developing countries like India have
faced severe issues in the past due to the energy crises across the globe. Overnight
fluctuations in the oil prices have never gone without surprising the Indian road users
who are majorly dependent on personalized transport like two-wheelers and cars.
So keeping these things in mind, the policies framework has to be done, which are
accountable and assists in maintaining a balance among these three sectors. However,
there are limited studies that have been conducted in the past to examine the inter-
relationship between the transportation, energy, and economy sectors. Hence, this
research work aims to study various energy and economic factors that influence
the road transportation sector. This is achieved by developing the system dynamics
(SD) simulation models and by testing three different scenarios to potentially reduce
the energy and economic losses in the road transportation sector. Finally, this study
provided recommendations that are critical and appropriate in reducing the energy
and economic losses that ensure prosperity in building up a sustainable transportation
system.
2 Review of Literature
Shepherd and Ortolano (1996) evaluated the environmental impacts of policies using
the strategic environmental assessment (SEA) for sustainable urban development.
Based on four different case studies, this study examined six potentials of SEA
to promote sustainability and concluded that SEA is a useful tool to implement
sustainability principles in comprehensive planning. Martino et al. (2006) have
studied the process of strategic modeling of transportation, economy, and energy
scenarios. They have presented the application of two different strategic system
dynamics models, namely the ASTRA model (SD model focused on describing the
linkages between transportation, economy, and environment) and the MARS model.
Both models make use of specific modules to determine travel behavior by running
System Dynamics Simulation Modeling of Transportation … 381
their sub-models iteratively for 25 years. The salient features of both the above
models were incorporated, and the final model depicted the future energy supply.
Parikh et al. (2009) studied the future of energy options for India in an inter-
dependent world. They have analyzed the implications of the available domestic
energy potential for the energy supply and demand situation in the transportation
sector. A quantitative model was built, taking into account the possible forms of
energy consumption for transportation of the people and freight. Simulation has
been carried out from the base year 2000 up to the year 2050. Demand projection has
been carried out based on key factors like economic growth and demographics and
their corresponding dynamics. Zheng et al. (2011) studied transportation sustain-
ability that could be transformed into a useful metric for assessing the performance
of the transportation system focusing on characterizing and measuring the economic
aspect of sustainability concerning transportation in terms of sustainability. The final
results of this study described the relationship between urbanity, mode share, and
the economic aspects of transportation sustainability.
Maheshwari et al. (2014) attempted to build dynamic models to capture the inter-
dependent behavior of transportation, economic, and, additionally, environmental
systems. The results indicated periodic behavior with a phase lag for the performance
of transportation and the activity system, which utilized the nonlinear modeling
techniques to capture the nominal behavior of all the three systems.
Finally, it can be inferred from the pieces of literature that an inter-relationship-
based study involving the sectors of transportation, energy, and economy is limited
to some extent and is not critically analyzed. Therefore, this instigates the need for
this research work.
3 Study Framework
After various literature reviews, a study framework is designed to analyze the inter-
relationship between transportation, energy, and economy sectors. The data collec-
tion is the initial stage for the study, after which the SD model conceptualization has
been carried out in establishing the relationship between the variables of urban trans-
portation, fuel consumption, and fuel cost. The SD simulation models operate based
on feedback information; it is used as a principle methodology to forecast future
urban vehicular demand in the transportation sector, fuel consumption by vehicles in
the energy sector, and fuel cost in the economy sector. This was followed by the devel-
opment and analysis of SD models for different scenarios (do-minimum scenario,
partial efforts scenario, and desirable scenario). The model evaluation and model
calibration were carried out by adjusting and fine-tuning the various variables under
consideration to reflect the real system. The comparison of results under the three
different scenarios was conducted to determine the advantages of the adopted policy
measures. Further, based on the obtained results, critical and appropriate recom-
mendations for adopting the best policy measures are suggested. The detailed study
framework is shown in Fig. 1.
382 S. Singh and G. Uma Devi
DATA COLLECTION
MODEL CONCEPTION
CALIBRATION OF MODEL
EVALUATION OF MODEL
RECOMMENDATIONS
4 Study Area
The study area selected for this study is Chennai city, which is one of the four
metropolitan areas in India with a population of around 9 million, with an area
of 174 km2 . The Chennai Corporation governs the Chennai city. The Chennai city
has a heterogeneous type of traffic condition plying on its roads majorly occupied
by personalized vehicles like two-wheelers (TWs) and cars. Other types of vehi-
cles like Metropolitan Transport Corporation (MTC) buses, auto-rickshaws, taxis,
private buses (Pvt buses), mini-buses, light commercial vehicles (LCV), and heavy
commercial vehicles (HCV) are also plying on the city roads.
Due to the increase in the growth rate of vehicular population, especially
personalized vehicles in the Chennai city, there is an increase in the fuel requirement
and fuel consumption. This proportional and exponential increment in the vehicles
and fuel consumption has eventually resulted in increased fuel costs due to the fuel
importing. Hence, it is imperative to study this effect on the economic growth rate
through a system dynamics approach aimed at analyzing the impact of the increase
System Dynamics Simulation Modeling of Transportation … 383
5 Data Collection
Under the transportation sector, the data collected is the classification of vehicles
and its composition along with their respective growth rate values, which are further
used for scenario analysis under three different scenarios, which are do-minimum
scenario, partial efforts scenario, and desirable scenario. The SD models were built
384 S. Singh and G. Uma Devi
using these data, and the forecasting of the same values was carried out until the
horizon year 2026. The different classes of vehicles and their vehicle population for
the Chennai city considered for this study are shown in Table 1.
Table 1 shows that the TWs, which includes motor cycles, scooters, and
mopeds, with a vehicular population of 35.09 lakhs and cars with 6.87 lakhs share
the highest proportion among the vehicle class in the year 2015. However, the public
transportation system consisting of the MTC buses shares one of the lowest vehicle
populations with just 4257 vehicles in the year 2015. Also, it was noticed that the
TWs and the cars continue to grow exponentially each year in comparison to MTC
buses.
Under the energy sector, the average distance traveled by the various classes of
vehicles in km/day, the efficiency of fuel in km/day, and the consumption of fuel in
L/veh/year by the different class of vehicle are taken into account and used in the
model simulation process which is shown in Table 2.
System Dynamics Simulation Modeling of Transportation … 385
In India, one among the rapidly growing city is the city of Chennai, Tamil Nadu,
which have a different form of economic pattern. In 2015, Chennai city had a GDP
of $66 Billion, i.e., 403,260 crore rupees ranking fifth in the cities of India based
on GDP. As per the estimates of the Confederation of Indian Industries (CII), it is
estimated that the city’s economy will grow up to $100 billion by the year 2025.
Table 3 indicated the annual GDP and the GDP growth rate of Chennai city.
In this scenario, the existing growth rates of the different classes of vehicles like
MTC buses, auto-rickshaws, taxis, LCVs, HCVs, Pvt buses, mini-buses, cars, and
TWs are considered to continue up to the horizon year 2026. Based on this scenario
model, as depicted in Fig. 3, the values of fuel consumption and fuel cost by each
class of vehicles have been simulated.
It could be observed from Table 4 that if the existing trend is allowed to continue,
the number of cars and TWs will reach 18.47 lakh and 84.61 lakh, respectively,
in 2026. Whereas the public transport vehicles constituting the MTC buses have
increased only to a fleet size of around 6693 in 2026. The growth of the vehicle popu-
lation has an incidental increase in the level of fuel consumption and the respective
fuel cost by each class of vehicles. The consumption of fuel for different vehicle
classes in liters per day and its respective fuel cost in rupees per day is shown in
Tables 5 and 6, respectively.
Under the do-minimum scenario with the growth in the number of vehicles
between the public and personalized transport, fuel consumption is also seen to
increase. The fuel consumed by cars is 29.51 lakh liters per day, and TWs are 20.86
2023 5916 116,827 6591 166,993 57,107 8147 5934 1,410,825 6,655,689
2024 6165 123,719 7850 198,888 58,192 9214 6587 1,543,443 7,210,107
2025 6424 131,019 9349 236,876 59,297 10,421 7312 1,688,526 7,810,709
2026 6693 138,749 11,135 282,119 60,424 11,787 8116 1,847,248 8,461,341
387
388
2022 11,716,474 38,168,794 1,465,693 30,224,393 42,122,876 14,864,813 799,966 134,712,060 114,658,076
2023 12,989,915 42,381,159 1,819,830 38,301,076 45,670,296 17,888,078 944,792 155,189,744 130,233,234
2024 14,401,762 47,058,407 2,259,533 48,536,042 49,516,466 21,526,227 1,115,837 178,798,879 147,924,123
2025 15,967,061 52,251,844 2,805,476 61,506,038 53,686,545 25,904,317 1,317,849 206,021,152 168,018,144
2026 17,702,489 58,018,436 3,483,328 77,941,927 58,207,811 31,172,841 1,556,432 237,412,767 190,841,737
389
390 S. Singh and G. Uma Devi
lakh liters per day, and that by MTC buses is just 2.33 lakh liters per day in 2026.
Finally, the total fuel that would be consumed by all the vehicles in the year 2026
would reach 298.81 crore liters per annum.
Under the do-minimum scenario with the growth in the number of vehicles and
fuel consumption between the public and personalized transportation, the fuel cost
for each vehicle class is also seen to increases. The fuel cost incurred by cars is 23.74
crore rupees per day, and TWs are 19.08 crore rupees per day, and that of MTC buses
is just 1.77 crore rupees per day in 2026. The total fuel cost that would be incurred
by all the vehicles in the year 2026 would be 24,679 crore rupees per annum.
In the scenario of partial efforts, the growth rate values of MTC buses, auto-rickshaws,
taxis, LCVs, HCVs, Pvt buses, mini-buses, cars, and TWs have been altered as per
the government policies which targets for a 50:50 modal split between public and
personalized transport mode for the horizon year 2026. The simulation process was
carried out for each class of vehicles based on their incremental growth rate values
from which the total quantity of fuel consumption and fuel cost was estimated. To
achieve the target of 50:50 modal split between public and personalized transport
modes, the growth rate of the former one has been increased to reach 11.10%, and
on the other hand at the same time, the growth rate of later one is restrained from
being nearly half of the already existing value of 4.16% and 4.73%, cars and TWs,
respectively. Figure 4 depicts the developed system dynamics simulation models for
the partial scenario.
The simulated value of the vehicle population for each class of vehicle-based on
the values mentioned above is shown in Table 7.
It could be observed from Table 7 that if minimal efforts are undertaken based
on the government’s policy and by altering growth rate of an existing trend, the
number of cars and TWs will reach 10.45 lakh and 45.40 lakh, respectively, from
18.47 lakh cars and 84.61 lakh TWs (scenario I values) in the year 2026, whereas
the public transport vehicles constituting the MTC buses have increased only to a
fleet size of around 12,767 from 6693 (scenario I value) in the horizon year 2026.
This happens so because of the consideration of the hypothesis that one single MTC
bus can replace 20 cars and 40 TWs. This decrease in the vehicular population with
respect to the number of cars and TWs happens due to a modal split value of 50:50
between public and personalized transport mode in the transportation system which
has lead to decrease in consumption of fuel and fuel cost which is shown in Tables 8
and 9, respectively.
In accordance with the alteration of growth rate in the number of vehicles between
the public and personalized transportation, the consumption of fuel by each class of
vehicles in the transportation system gets varied correspondingly. From Table 8, it
can be observed that the fuel consumed by cars decreases to 16.70 lakh liters per
day from the scenario I’s 29.51 lakh liters per day and the fuel consumed by TWs
System Dynamics Simulation Modeling of Transportation … 391
decreases to 11.19 lakh liters per day from the scenario I’s 20.86 lakh liters per day
and the fuel consumed by MTC buses increases to 4.45 lakh liters per day from the
scenario I’s 2.33 lakh liters per day in 2026.
The total fuel consumption by personalized transportation is 27.89 lakh liters per
day, whereas that of public transportation is just 4.45 lakh liters per day. So the total
saving in fuel consumption is 23.44 lakh liters per day.
From the above values, it can be said that the fuel consumption of MTC buses has
seen an increase in it, but when we take into account the values of fuel consumption
per person traveling in MTC Bus with respect to that of persons using cars and
TWs combined, it can be said that the fuel consumption of the former transport
mode is seen to be much lesser than that from the latter one. When these resultant
values are compared with the scenario I results, it can be concluded that the total
fuel consumed by all the vehicles in scenario II decreases to 224.25 crore liters per
annum from the scenario I’s 298.81 crore liters per annum in 2026, which shows a
reduction of 24.95% of fuel consumption by all the vehicles in the scenario I.
In accordance with the alteration in the growth rates of the number of vehicles
and fuel consumption between the public and personalized transport modes, the fuel
cost by each mode of transportation also gets varied correspondingly.
From Table 9, it can be observed that the fuel cost incurred by cars decreases to
13.42 crore rupees per day from the scenario I’s 23.74 crore rupees per day and the
fuel cost incurred by TWs decreases to 10.24 crore rupees per day from the scenario
I’s 19.08 crore rupees per day and the fuel cost incurred by MTC buses increases to
392
2022 298,627 504,310 20,159 510,772 711,849 251,206 13,519 1,434,085 1,019,440
2023 329,983 534,064 24,010 608,330 725,374 284,113 15,006 1,489,764 1,043,601
2024 364,631 565,574 28,596 724,521 739,156 321,332 16,657 1,547,609 1,068,334
2025 402,917 598,943 34,058 862,904 753,200 363,427 18,489 1,607,704 1,093,653
2026 445,223 634,281 40,563 1,027,719 767,511 411,036 20,523 1,670,137 1,119,573
393
394
3.37 crore rupees per day from the scenario I’s 2.33 crore rupees per day in 2026.
The total fuel cost incurred by personalized transportation is 23.66 crore rupees per
day, whereas that of public transportation is just 3.37 crore rupees per day. So the
total saving in the fuel cost is 20.29 crore rupees per day.
From the above values, it can be said that the fuel consumption of MTC buses has
seen an increase in it, but when we take into account the values of fuel consumption
per person traveling in MTC Bus with respect to that of persons using cars and TWs
combinedly, it can be said that the fuel consumption of the former transport mode
is seen to be much lesser than that from the latter one. When these resultant values
are compared with the scenario I results, it can be concluded that the total fuel cost
incurred by all the vehicles in scenario II decreases to 18,275 crore rupees per annum
in scenario II from the scenario I’s 24,679 crore rupees per annum in the horizon year
2026, which shows a reduction of 28.94% of fuel cost incurred by all the vehicles in
the scenario I.
In the desirable scenario, the growth rate values of MTC buses, auto-rickshaws, taxis,
LCVs, HCVs, Pvt buses, mini-buses, cars, and TWs were altered as per the govern-
ment policies which targets for a 70:30 modal split between public and personalized
transport mode for the horizon year 2026. The simulation process was carried out
for each class of vehicles based on their incremental growth rate values from which
the total quantity of fuel consumption and fuel cost was found. Figure 5 depicts the
developed SD simulation model for the desirable scenario.
To achieve the target of 70:30 modal split between public and personalized trans-
port modes, the growth rate of the public transportation was increased to reach
17.34%, and on the other hand at the same time, the growth rate of cars and TWs
is restrained to 2.33% and 3.19%, respectively. The simulated value of the vehicle
population based on the values mentioned above is shown in Table 10.
The simulated value of the vehicle population for each class of vehicle-based on
the values mentioned above is shown in Table 10.
It could be observed from Table 10 that if minimal efforts are undertaken based
on the government’s policy and by altering growth rate of the existing trend, the
number of cars and TWs will reach 8.20 lakh and 39.66 lakh, respectively, from
18.47 lakh cars and 84.61 lakh TWs (scenario I values) in 2026, whereas the public
transport vehicles constituting the MTC buses have increased only to a fleet size of
around 16,393 from 6693 (scenario I value) in the horizon year 2026. This happens so
because of the consideration of the hypothesis that one single MTC Bus can replace
20 cars and 40 TWs.
This decrease in the vehicular population with respect to the number of cars
and TWs happens due to a modal split value of 70:30 between public and person-
alized transport mode in the transportation system which has lead to decrease in
consumption of fuel and fuel cost which is shown in Tables 11 and 12, respectively.
396
In accordance with the alteration of growth rate in the number of vehicles between
the public and personalized transportation, the consumption of each class of vehicles
of the transportation system gets varied correspondingly. It can be observed from
Table 11, that the consumption of fuel by cars decreases to 13.13 lakh liters per
day from the scenario I’s 29.51 lakh liters per day and the fuel consumed by TWs
decreases to 9.78 lakh liters per day from the scenario I’s 20.86 lakh liters per
day and the fuel consumed by MTC buses increases to 5.71 lakh liters per day
from the scenario I’s 2.33 lakh liters per day in 2026. The total fuel consumption
by personalized transportation is 22.91 lakh liters per day, whereas that of public
transportation is just 5.71 lakh liters per day.
So the total saving in fuel consumption is 17.20 lakh liters per day. From the above
values, it can be said that the fuel consumption of MTC buses has seen an increase in
it, but when we take into account the values of fuel consumption per person traveling
in MTC bus with respect to that of persons using cars and two-wheelers combinedly,
it can be said that the fuel consumption of the former transport mode was seen to be
much lesser than that from the latter one.
When these resultant values were compared with the scenario I result, the total
fuel consumed by all the vehicles in scenario III decreases to 210.67 crore liters per
annum from the scenario I’s 298.81 crore liters per annum in 2026, which shows a
reduction of 29.49% of fuel consumption by all the vehicles in the scenario I.
398
2022 20,718,006 38,168,794 1,465,693 30,224,393 42,122,876 14,864,813 799,966 80,742,514 70,798,307
2023 24,918,491 42,381,159 1,819,830 38,301,076 45,670,296 17,888,078 944,792 86,428,987 75,063,424
2024 29,970,605 47,058,407 2,259,533 48,536,042 49,516,466 21,526,227 1,115,837 92,518,020 79,585,484
2025 36,047,013 52,251,844 2,805,476 61,506,038 53,686,545 25,904,317 1,317,849 99,038,261 84,379,969
2026 43,355,387 58,018,436 3,483,328 77,941,927 58,207,811 31,172,841 1,556,432 106,020,404 89,463,288
399
400 S. Singh and G. Uma Devi
In accordance with the alteration in the growth rates of the number of vehicles
and fuel consumption between the public and personalized transportation, the fuel
cost by each mode of transportation also gets varied correspondingly.
It can be observed from Table 12, that the fuel cost incurred by cars decreases to
10.60 crore rupees per day from the scenario I’s 23.74 crore rupees per day and the
fuel cost incurred by TWs decreases to 8.94 crore rupees per day from the scenario
I’s 19.08 crore rupees per day and the fuel cost incurred by MTC buses increases
to 4.35 crore rupees per day from the scenario I’s 2.33 crore rupees per day in the
year 2026. The total fuel cost incurred by personalized transportation is 19.54 crore
rupees per day, whereas that of public transportation is just 4.35 crore rupees per
day. So the total saving in the fuel cost is 15.19 crore rupees per day.
From the above values, it can be said that the fuel consumption of MTC buses has
seen an increase in it, but when we take into account the values of fuel consumption
per person traveling in MTC Bus with respect to that of persons using cars and TWs
combinedly, it can be said that the fuel consumption of the former transport mode was
seen to be much lesser than that from the latter one. When these resultant values were
compared with the scenario I results, the total fuel cost incurred by all the vehicles in
scenario III decreases to 10,353 crore rupees per annum from the scenario I’s 24,679
crore rupees per annum in 2026, which shows a reduction of 58.04% of fuel cost
incurred by all the vehicles in the scenario I.
7 Recommendations
This study recommends stringent legislative policy as similar to the one implemented
in New Delhi Capital city of India: odd–even concept of plying of vehicles on the
road on alternate odd–even dates of the days in a week. Similar legislative policies
are to be framed and implemented with immediate effect that curbs the usage of the
personalized mode of transport and enhances the public mode of transport. In this
study, the recommended policy is restricting the usage of the personalized mode of
transport for certain specified short distance travels during peak hour or certain period
or on a particular non-working day in a week which can be implemented which not
only reduces the plying of the personalized mode of transport vehicles on the city
roads but also enhances the usage of public mode of transport vehicles including rails,
trams, etc. On the other hand, the fleet size of the urban public transportation like the
MTC buses has to be increased not only with greater efficiency and reliability but
also with promising mobility, accessibility, and connectivity, to achieve the policy
as mentioned earlier of the government.
These policies can eventually lead to a considerable reduction in fuel consumption
and fuel cost in the city, making it a place with reduced economic losses due to fuel
imports. Also, fuel emissions from vehicles and the impact of pollutants on the
environment can be reduced, thereby attaining sustainable transportation systems
that have considerable contributions toward achieving the Sustainable Development
Goals (SDG).
System Dynamics Simulation Modeling of Transportation … 401
Finally, this study also recommends that besides, implementing the the recom-
mended mitigation measures to the 3E systems—‘Engineering’, ‘Energy’, and
‘Economy’, it is always advisable and better to consider additional 3E’s also, i.e., the
Education, Ethical values, and Enforcement into the 3Es’ systems for a prosperous
and sustainable development of the city.
8 Conclusions
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