Debates
about tolling our highways traditionally focus on
the potential revenues they’ll raise and how the
money will be spent once it is raised. While this
is an important piece of the overall equation, it
falls short of detailing the full benefit tolling
can bring.
To begin, we must
understand that a toll is no different from any
other service charge we pay. It is nothing more
than a price. Second, technology is moving us
rapidly away from the traditional toll collection
model with long lines of commuters waiting to pay
their toll — Smart Pass and EZ Pass systems are
already utilized by many of the Commonwealth’s
toll road users today. However, cutting-edge
technologies enable us to monitor traffic flows
and make real-time price adjustments based on
those flows. A simple concept — as demand
increases, so does price and vice versa.
As consumers, we’re generally willing to pay a
little more for something that is a little better.
The same is true for the added convenience or
virtual guarantee of being on time or not sitting
in traffic.
Following that line
of thinking, one of the most often overlooked
benefits of tolling is that it encourages economic
thinking. Variable pricing enables us to put a
price on time — allowing those who are willing
to pay to avoid congestion. If we can
appropriately price the cost an urban driver puts
on the system during rush hour, the incentives for
that driver change significantly. Faced with
options, that driver will either pay the cost,
find someone to share the cost by carpooling,
commute during non-peak hours, find other means to
get to work by bus or train, or arrange to
telecommute.
Congestion will decrease
almost immediately. Economic factors and decision
making will lead to greater use of each option
above — at a minimum, some drivers will no
longer commute alone in their car during rush
hour.
A recent national road pricing
study in the United Kingdom produced a stunning
conclusion — using road pricing to achieve just
a four percent reduction in traffic reduces
congestion by 50 percent. Thus, not many people
need to use toll roads in order to significantly
reduce congestion on today’s main thoroughfares.
One of the biggest arguments against tolling or
road pricing is that it isn’t “fair” because
the lanes would be open only to those who can
afford to use them. This argument is flawed
because users of the “pay” road free up space
on the “free” road, thus reducing congestion
and improving the average speed for non-payers.
Indeed, two variable pricing projects in
California show that pricing really keeps traffic
flowing. The priced lanes on SR-91 carry twice as
many vehicles per lane as the unpriced lanes at
speeds 3 to 4 times faster. In addition, the free
lanes are experiencing shorter commute times and
less congestion than before. A classic win-win. We
don’t object to different levels of service for
other commodities including our airlines and rail
service, and there is no reason to believe would
with toll roads.
Pricing, however, is
itself more equitable. Those who use the network
during peak periods should pay more than those who
do not. This is the same type of pricing we use
for telecommunications, electricity, movies,
time-share vacation homes, airline tickets, and
virtually any other business that experiences
higher demand periods.
There is no
justifiable reason why highways are any different.
Why should a driver on Sunday pay the same charge
to use the toll road as a commuter driving to work
at 8:00 a.m. on Monday morning? The
third most overlooked benefit of road pricing is
that it creates customers and encourages
innovation. Toll authorities in America tend to be
more customer-focused because their revenues are
directly tied to the number of drivers using their
facility. While VDOT has made dramatic strides and
improvements in its operations, the agency falls
well short of being labeled customer
centric.
We must not lose sight of the
purpose of our transportation network. It is to
move people in the most efficient and effective
manner possible. Pricing as a model must be part
of the future solution to our transportation
needs. Americans are always willing to pay more
for quality or convenience.
We’re willing to pay upwards of $5.00 for
Starbucks even though our offices provide free
coffee. The US Postal Service will deliver a
letter for 37 cents, but we are willing to pay $15
for guaranteed service by FedEx and UPS.
Our highways should be no different. Drivers will
pay to get where they’re going in a shorter
period of time when it is convenient to do so.
--
January 3, 2006
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