Abstract for: A system dynamics approach to examine the method of resolving traffic congestion in Tehran

In this paper, a system dynamics approach is applied to study the consequences of highway construction projects and their method of funding in Tehran on traffic congestion. In recent 40 years, Tehran municipality has built new roads in Tehran but the traffic problem has not been resolved. Besides, in recent years the municipality has used an unsustainable method for revenue earning, which is selling excess building permits. This method has aggravating effect on traffic congestion. The proposed model simulates the traffic system behavior considering road construction and method of funding the road construction projects. The results indicate that continuing to selling excess building permits and construction of new roads will not result in desirable outcomes. Thus it is suggested that Tehran municipality raises the price of building permits and enforces the law on the maximum number of building permits which are sold each year according to the capacity of each area.