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SECTION 1
Decision-Making Guide: Evaluating
Road Pricing Potential for Local
Areas and Conditions
This section provides background on six road pricing concepts and provides diagnostic infor-
mation to help planners and decision makers assess which specific road pricing concepts might be
most applicable in their areas. It begins by briefly describing six road pricing concepts, followed
by showing the applicability of the concepts through a series of three tables that (1) addresses how
the pricing concepts match with many of today's important local and state transportation goals;
(2) shows how the concepts best apply to roadway operating conditions, type and severity of con-
gestion, availability of transportation alternatives, and the policy and institutional setting in a
region; and (3) provides the main considerations related to acceptability, engagement, and com-
munication that are important for the successful adoption and implementation of all the pricing
concepts.
1.1 Road Pricing Concepts
The discussion in this section and the rest of the report focuses on the following six categories
of road pricing:
· Conversion of existing HOV or other lanes to HOT lanes
· Variable pricing on new or rehabilitated facilities and regionwide networks
· Variable pricing on existing toll facilities
· Pricing of an area of existing roads and streets ("areawide" or "cordon" pricing)
· Distance-based pricing or mileage fees
· Variable pricing applied to parking
These six categories cover a full array of pricing strategies applied both within the United States
and around the world. Descriptions of these concepts are provided in the following paragraphs.
1.1.1 Conversion of Existing HOV or Other Lanes to HOT Lanes
Conversions of existing HOV lanes to HOT lanes allow vehicles not meeting normal occupancy
requirements to "buy-in" to the lane by paying a toll varying by time of day or level of congestion.
In some cases, it is not HOV lanes but shoulder lanes that are converted to dynamically priced
HOT lanes. Conversion of general purpose lanes to HOT lanes has also been studied, but is yet to
be implemented. Of course, HOT lanes on new or rehabilitated facilities without conversion are
another possibility, as addressed in the next category. HOT lanes allow drivers to use high-speed,
uncongested HOV lanes either by meeting minimum occupancy requirements or by paying a toll.
Where HOV lanes face peak-hour congestion, conversion to HOT lanes allows the use of variable
pricing to control traffic demand, reduce peak-period congestion, and ensure that the lanes pro-
vide premium travel conditions to all users, both existing HOV users and new paying customers.
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