International Perspectives on Road Pricing (2005) / Chapter Skim
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Special Topics
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2 1 Ah, the Politics of Pricing Eric Schreffler, ESTC, San Diego, California John Albion, Lee County, Florida Jan A Martinsen, Norwegian Public Roads Administration HOW POLITICS AFFECTS EVEN GOOD PROJECTS Eric Schreffler As part of the federally sponsored evaluation of the Interstate 15 Value Pricing Demonstration Project, ESTC prepared the institutional assessment, which involved interviews with some 40 stakeholders over the 3-year pilot project.
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The transport professionals are convinced that congestion pricing should be part of future transport policy, at least in Oslo. The task is for these professionals to convince the political decision makers that congestion charging is a good policy.
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• They must be able and willing to deal with negative public reaction and to argue convincingly for the benefits from road pricing. • They need to be shown examples of successful road user charging projects.
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2 4 A Closer Look Pricing Across the States Mark Muriello, Port Authority of New York and New Jersey Jim Ely, Florida's Turnpike Enterprise Jeff Buxbaum, Cambridge Systematics, Inc. Ellen Burton, Orange County Transportation Authority TOLL ROAD APPLICATIONS: PERSPECTIVES FROM THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY Mark Muriello The Port Authority of New York and New Jersey operates and maintains six interstate vehicular crossings, three bus terminals, the Port Authority Trans-Hudson (PATH)
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The turnpike is investing $250 million in the I-4 improvements, which will involve four priced lanes in the median. The project is the product of a partnership between the local Florida Department of Transportation office, the Federal Highway Administration, and the turnpike.
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It is the only primary east–west corridor linking Orange County with the Inland Empire. The freeway carries more than 250,000 average daily vehicles, and during peak hours generalpurpose lanes are highly congested.
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In January 2003 OCTA bought the 91 Express Lanes franchise for $207.5 million. The transaction included the assumption of $135 million in taxable debt and the advancement of $72.5 million from internal borrowing.
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While we have not yet implemented road pricing largely because of lack of public acceptance, road pricing is back on the national discussion agenda. In my view, it is all but inevitable that by 2010 the Netherlands will have some form of road pricing in effect.
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WHY REFORM TRANSPORT PRICING? AN OVERVIEW OF EUROPEAN TRANSPORT INFRASTRUCTURE CHARGING POLICY AND RESEARCH Christopher Nash In its 1998 White Paper on Fair Payment for Infrastructure Use, the European Commission adopted a clear policy calling for the phased introduction of marginal social cost pricing for infrastructure use.
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The UNITE project, also funded by the European Union, has carried out more than 30 case studies covering all modes and situations (urban and interurban freight and passenger travel)
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, with an average extra charge of €0.21. It can thus be concluded that the taxation and charging systems currently in place in the European Union do not cover the full social costs of transport infrastructure use, with shortfalls in the range of €0.20 to €0.40 per kilometer.
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In an effort to reduce these problems, in 1987 the city council decided to implement a road pricing or tolling system as one part of a new transport plan for the city. The transport plan covers all types of city transport.
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This projection is based on an optimal toll schedule that sets separate rates by time of day and day of week and that differentiates between single motorists and subscription motorists. An opinion poll that surveyed 3,000 people gathered information on perceptions of factors that contribute to well-being and those that cause concern.
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Ltd., Singapore Imad Nassereddine, 407 ETR Concession Company Ltd. VARIABLE ROAD PRICING IN FRANCE David LeCoffre France has more than 50 years of toll road experience.
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Exemptions to the scheme are needed for equity reasons, and the management of exemptions can require significant organizational effort. EVALUATION OF SINGAPORE'S ELECTRONIC ROAD PRICING SYSTEM Gopinath Menon In 1975, Singapore introduced a manual (i.e., nonelectronic)
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strategies have served as a catalyst for road pricing in all its forms. As facets of policy and technology interact, new variants of policy and technology are created.
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ETC service is scheduled to be available on almost all expressways by the end of this fiscal year. Thanks to the capability provided by ETC, Japan is in the midst of experimenting with a variety of road pricing schemes, including environmental road pricing, special pricing for long-distance use, and special pricing for specific sections.
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Parking cash-out increased the employers' costs by only $2 per employee per month, because they saved almost as much on provision of parking spaces as they paid in cash to commuters. In addition, federal and state income tax revenues rose by $65 per employee per year because many commuters voluntarily traded their taxexempt parking subsidies for taxable cash.
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The 91 Express Lanes have shown that innovative road pricing can be economically attractive, win public approval, and influence travel behavior. Increasing travel options is a subtle yet powerful outcome from such projects.
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A project group is now working on an Oslo Package 3, so time will tell. New electronic fee collection technology (AutoPASS)
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4 2 A Closer Look at the Real World Derek Turner, Derek Turner Consulting Stephen Ison, Loughborough University, United Kingdom MANAGING THE STREETS OF LONDON Derek Turner The use of congestion charging as an effective tool for the management of urban traffic flows has been demonstrated by the ground-breaking scheme introduced in London in February 2003. Many world cities that have already implemented new interurban toll routes are considering such a congestion charge as a method of extending road user charging to an existing urban road environment.
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While it may be necessary to refine the fee collection system at a later date, a pricing system is more likely to be adopted if the initial system is simple and can be explained quickly and clearly to the public at large. • Single implementing agency.
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4 4 Impacts of Pricing on Interurban Freight Transportation Robert Poole, Reason Foundation Tony Wilson, National Transport Commission, Australia Darrin Roth, American Trucking Associations Andreas Kossak, High Commission Financing the Federal Transportation Infrastructure, Germany TOLL TRUCKWAYS: USING PRICING TO FINANCE NEW GOODS-MOVEMENT INFRASTRUCTURE Robert Poole The United States faces a serious shortfall in highway investment as fuel taxes fail to keep pace with inflation, increased fuel economy, and use of alternative fuels. Trucks deliver 90% of the value of U.S.
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Its views on 4 5IMPACTS OF PRICING ON INTERURBAN FREIGHT TRANSPORTATION
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Finally, electronic tolling imposes significant costs on truckers; if the German road pricing proposal were applied to the United States, we estimate that it would cost $200 million per year to place onboard units into new vehicles and $1.5 billion to convert existing vehicles. The fuel tax, in contrast, imposes much lower ancillary costs.
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The comprehensive road pricing policy tolled all of the area's roadways at 7 cents per mile on general lanes and 22 cents per mile on premium lanes. The HOT lane policy produced substantial net benefits -- more than $170 million per year.
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Second, an understanding of the valuation of externalities by various socioeconomic groups and regions is essential for evaluating alternative pricing programs. In forging transport policy, governments ideally have three objectives: raising revenue to provide public goods and services, achieving a desirable income distribution, and controlling externalities.
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Third, using toll revenues to reduce general taxes or to provide income transfers based on need is probably the safest way to recycle the revenues generated through pricing schemes. Earmarking revenues for specific purposes can be desirable in closing the loop between payers and beneficiaries but can be dangerous economically and misleading politically.
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5 1 Urban Freight Transportation Mark Griffin, Southern California Association of Governments David Levinson, University of Minnesota Martin Ruesch, Rapp Trans AG, Switzerland MOVING THE GOODS IN LOS ANGELES Mark Griffin The six-county region of Southern California represented by the Southern California Association of Governments (SCAG) serves as a crucial node of international and national commercial flows.
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In addition to deriving estimates for commercial vehicle operators' value of time, which can now inform policy decisions concerning the spring load restriction policy, the analysis helped illuminate the advantages of an adaptive stated preference study in comparison with traditional stated preference studies. The current state of the art in using stated preference methods to evaluate the value of time uses a fee structure in exchange for time savings, in most cases a toll.
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• A demand management approach can generate more benefits for urban freight transport than a financing approach. • Urban transport policy, not only for passenger but also for freight, ought to address road pricing.
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5 4 The Price Is "Right" Perspectives on Finding It Genevieve Giuliano, University of Southern California Ed Regan, Wilbur Smith and Associates Jim Bourgart, Parsons Brinckerhoff Mark Burris, Texas A&M University INNOVATIVE FINANCING'S ROLE IN PRICING PROJECTS Genevieve Giuliano Since the passage of the 1956 Interstate Highway Act, highway infrastructure in the United States has been funded, built, and operated almost entirely within the public sector. Infrastructure was funded primarily by fuel and other user fees, and projects were built on a pay-as-you-go basis.
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The surveys have shown strong support for the variable pricing approach, with overwhelming approval registered by both users and nonusers of lanes as well as carpoolers and transit patrons. In fact, the most frequent response to a question about the single most effective way to reduce congestion on other portions of Interstate 15 was to extend the tolled express lanes, which showed consistently more support than simply adding toll-free regular lanes.
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The surveys also identified a significant distrust of government, which primarily took the form of suspicion that road pricing is meant not to prevent congestion but rather to collect more money for the state. A companion concern was that prices would go up any time the government felt the need for more revenue.
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In response to a question on the toll and pricing provisions included in the U.S. administration's proposed bill to reauthorize the federal highway and transit programs, Emil Frankel noted that two factors -- the difficulty of expanding capacity through new infrastructure and a shortage of capital -- have coalesced to create sustained interest in road pricing.
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One remarkable outcome of the SR-91 experiment, he added, is that the original allegation that the express lanes would turn into "Lexus lanes" was disproved; in fact, the benefits have been widely distributed. He reiterated that this outcome -- the creation of an improved level of service for a large number of drivers -- was essential to the association's support of any pricing project.
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