Liberating road users: Options for progress
Liberating road users at ADC 2 September 24, 2010 How are road users constrained? Governments determine Charges for road use Allocation of revenues Provision of new capacity
Two plausible approaches towards market system Provide express toll lanes Introduce per-mile charging
Liberating road users at ADC 4 September 24, 2010 Express toll lanes Introduced in 1995, on 10 miles of California’s State Route 91 Tolls Electronically collected and prices adjusted to reduce congestion to to minimal levels Travelers have the choice of paying tolls to save time Used by members of all income classes
Liberating road users at ADC 5 September 24, 2010 “HOT” networks in eight US urban areas Proposed in 2003 by Bob Poole and Ken Orski in “Reason” Policy Study. Updated in 2006 as chapter 19 of “Street Smart”. Cost of 8 networks could be $50 billion Term “HOT” [“High-Occupancy or Toll”] unfortunate, as exemptions for high-occupancy vehicles are damaging
Liberating road users at ADC 6 September 24, 2010 Per-mile charging Recommended in 2009 by Congressional Commission, because fuel taxes were not producing enough revenues to satisfy politicians Charges could vary for different roads and on different times of the day Would be desirable as a stage in commercializing roads — moving them into the market economy
For a market in road space to work: All roads should be tolled Road users should pay the road providers, segment by segment Only GPS-based systems can meet these requirements
Liberating road users at ADC 8 September 24, 2010 GPS-based charging systems Vehicles carry meters, which record distances travelled Distances, but no trip details, transmitted to billers Billers debit road users Billers credit road providers Eliminates need for government road financing
Liberating road users at ADC 9 September 24, 2010 Siemens On-Board Unit
Liberating road users at ADC 10 September 24, 2010 Problems with GPS-based charging systems Fears (groundless) that vehicles could be “tracked” to invade privacy Fears (well-grounded) that, in the USA, cost-based road-use charges would exceed current charges paid via fuel taxes
Liberating road users at ADC 11 September 24, 2010 How, then, to introduce GPS-based road pricing? Not all vehicles can be equipped at once, so offer rewards and seek volunteers in test areas Rewards can include: Distance-based insurance premiums Remission of annual license fees Easier street parking
Liberating road users at ADC 12 September 24, 2010 Plausible next steps: Accelerate the provision of express toll lanes Introduce trials of voluntary GPS-based road-use fees, as alternative to existing road-use taxes Oregon already had successful pilot project