1. GE541 Economic Geography of Transport October 30th

2. Congestion Pricing: Theory and Practice Congestion Price Charging a substantial fee for vehicle operation at times and places subject to peak demand Monetary incentives toward behavior modification

3. Recent policy interest in pricing policies such as road tolls and parking fees Focus on limiting traffic congestion

4. Road Pricing Examples 1.Singapore (1975) 2.Bergen, Oslo, Trondheim, Norway (circa 1990) 3.Auto Route A1 (France) 4.California 91 (1995) 5.London 6.Seoul, Korea

5. Singapore Area Licensing Scheme (1975) A.Fee of US $1.50 - 2.5/day (exempting car pools & taxies, motorcycles & commercial trucks). B.Above vehicles no longer exempt C.Afternoon peaks included Car commuting (<4 riders) dropped 48% - 27% Carpool & bus increased 41% - 62% More Recent Electronic System Stringent Policies

6. Hong Kong and Cambridge, UK Trials and Non Adoption

7. Scandinavian Toll Rings Objectives: Revenue Generation rather than Congestion Pricing Both in Norway and Sweden The latter may evolve into a congestion pricing

8. Stockholm Dennis Package Improved public transit New bypass roads and Road pricing [A toll ring - 15 year investment package] North-South bypass route west of the city

9. Auto Route A1 N. France Weekend Peak Spreading April 1992 Red Tariff - Sunday 4:30 - 8:30 pm Toll rates 25 - 56% higher than normal toll Open Tariff (lower toll rates) –before and after peak hours

10. Riverside Freeway (California) (CA-I-91) Private French toll road firm (Toll approximately $2.00) Dulles Highway Tolls

11. Netherlands Randstand Region 2,000 square miles 6 million people Road Pricing Scheme Plan

12. Greater London £5 Charge in Central London A Success Story

13. Seoul Case

14. New York City Plan

15. The Politics of Road Pricing The Anglo Saxon Experience

16. US Government tried tolls on publicly owned and operated roads and bridges No cities bought the idea [Distinction between road and home use pricing] ISTEA experiments in congestion pricing More interest in tolling growing, however, in controlling air pollution

17. (especially in inner portions of metro areas) - in these cases, new construction almost impossible Tolls in such situations can induce motorists to consider: Demand Management Role of Tolling  alternative routes  alternative modes and  alternative travel times

18. 1990 Clean Air Act All reductions of air pollution came initially from technologies Further reduction must come from behavioral changes Auto air pollution comes from Cold engine starts VMT No discouragement of auto use in off-peak periods Interest in ubiquitous tolling for environmental planners

19. Winners and Losers Economists - focus on CBA Gains to winners a must > Costs to losers so that society as a whole is better off.

20. Planners and engineers sensitive to the fact that such compensation seldom takes place, so that some parties are left worse off by tolling than before.

21. Tolling on Existing Road WinnersLosers 1. High value on travel time savings 1. People with low value of time 2. HOV lane users2. People shifting to a competing untolled facility 3. Recipients of toll revenues 3. Users of the above competing facility 4. People who decide not to make this trip Political support for tolling difficult to put together. Compensation packages?

22. Tolling a New Road Less losers More acceptable than tolling existing one (e.g. taking away an existing lane for a tolled HOV lane not popular)

23. Federal Gas Tax 4 cents/gallon 1950s 9 cents1983 14 cents1990 18 1/2 cents1993 Gas tax weakens the case for imposing tolls