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SUMMARY This paper designs emission charging schemes to ensure traffic emissions not exceeding the emission budgets in emission regulation areas. In a network where all links are tollable, we prove that, under mild conditions, there exists a non‐negative link‐based toll scheme that achieves the transportation conformity requirement while minimizing total emissions. We further consider only tolling in the emission regulation areas and formulate a model to determine optimal area‐based emission charges to ensure the conformity. The model is formulated as a mathematical program with complementarity constraints. A solution framework is developed to solve the model, leveraging on a derivative‐free pattern search algorithm and integrating MOVES to estimate vehicular emissions more accurately. The proposed models are demonstrated on two numerical examples. Copyright © 2013 John Wiley & Sons, Ltd.
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