8/9/2019 lec5joe

1/12

1.253

Transportation Policy

& Environmental Limits

Lecture 5

Pricing for Change:Is Pricing a Policy Alternativ

8/9/2019 lec5joe

2/12

Regulating the Driver Fuel prices Transportation

demand management

measures, HOV lanes,restricted use, etc.

Employer incentives and disincentives

Land use reforms

8/9/2019 lec5joe

3/12

Pricing What is the underlying

rational for pricing asan alternative?

Behavioral policy tool: (1) network sendscongestion/pricing signals to users; (2) users may react as

8/9/2019 lec5joe

4/12

DefinitionsCongestion Pricing & Value P

A transportation control measure (TCMthat offers a disincentive to driving h

used roads by imposing a fee based up

time, vehicle occupancy, location or oa premium alternative to congested

roadways that enables the driver to rea

their destination more quickly.

8/9/2019 lec5joe

5/12

Congestion Pricing Justificat

Transport & Mob

Levy true cost of mon drivers. Divert drivers to re

system demand an

optimize system ca(level of service).

Reduce congestionon urban land and

streetscape. Optimize other mo

8/9/2019 lec5joe

6/12

Congestion Pricing Justificat

Environmental & F

Reduce emissions incenting drivers to

mass transit.

Reduce oil and fueconsumption.

Savings of producttime lost in conges

Optimal use of traninvestment.

8/9/2019 lec5joe

7/12

Pricing Options Facility Pricing pricing is imposed on one or m

roadways (new & existing) that link residential acommercial areas or central business districts. To

placed at entrance and exit points of facility.

Regional Network Pricing fees are imposed oof road going different directions, includes more

trip than facility pricing. Tolls are installed on vanodes.

Cordon Pricing charges vehicle for entry and high-activity or demand areas, e.g, central businesuch as London. Fees are usually varied by time

h k ti i d T ll i l h

8/9/2019 lec5joe

8/12

Pricing and Implementatio

Single facility pricing may be easier toimplement. Politically most acceptable on nroadways.

Cordon Pricing relieves central business dor other high traffic area, may not relievecongestion on outer belts or major facilities

Network pricing less acceptable because tpolicy signal is no matter where you drive

8/9/2019 lec5joe

9/12

Pricing and the Tale of Three C

Trondheim, Singapore & San D

Trondheim, Norwa

people cordon pricsince 1991. 10% dbound cars/7% inctravel.

Singapore, 1975 libusiness car accesspeak trip congestio23%.

San Diego, incentsbuy their way onto

8/9/2019 lec5joe

10/12

If congestion or value pricin

such a good idea, why isnt

more widely used?

8/9/2019 lec5joe

11/12

Congestion Pricing Challeng Question of equity low to middle income work

child care and fixed schedules.

Question of access and business access to dowbe more costly driving people from city to suburand shopping.

Question of revenue diversion where are the rebeing directed, to transport or general welfare.

Question of capacity can transit or other modesaccommodate the diverted demand.

Question of implementation is the technology ain place to fairly and effectively enforce pricing

8/9/2019 lec5joe

12/12