One Man's Trash

Norman Leahy


 

And Now, a Kind Word about Tolls

 

The public prefers tolls to taxes as a method to fund transportation improvements -- as long as the public sees a clear benefit and politicians do not divert revenues to other projects.


 

There can be little doubt that tolls are an important tool to use in an effort aimed at addressing congestion. But as I've noted elsewhere, tolls are not a silver bullet that will magically and permanently slay our transportation demons. And finally, it looks like someone in the press is beginning to at least grasp that point.

 

In a recent column on “the inevitability of road pricing,” Washington Post editorial page editor Fred Hiatt wrote, in part:

The reality is that road pricing is inevitable. It won't be a panacea, and the administration has unfairly burdened a good idea by supporting it while refusing to increase other revenue sources for transportation. The D.C. study showed that road pricing doesn't necessarily solve the revenue problem. Tolls on Maryland's intercounty connector (ICC), for example, should keep traffic flowing, but they won't come close to covering construction costs.

Of course, if all one wants to do is shovel more money into a transportation system -- without first setting measurable goals, creating a list of congestion-easing priorities, let alone determining where current funds are being spent -- it's little wonder there might not be anything left for maintenance.

 

Details, details...

 

Hiatt also notes that there are political difficulties to overcome with tolls. While he attributes a red-blue political twist to the qualms, which grossly oversimplifies matters, there is still truth to the idea that on well-established “free” routes, drivers assume that the roads have already been paid for. And because of that, many users believe it is unfair to make them pay a second or third time for the same road. While they may not have paid for all the external costs of those roads (and making them do so would require raising the gas tax to roughly $2 per gallon…s o don’t count on that), convincing these people that they haven’t paid for the long-existing blacktop under their wheels with every fill-up will be a very hard sell.

 

That’s made even harder because where tolls do exist, the monies aren’t always used to benefit the drivers who pay the fees. Hiatt shows how this happens, but probably not in the way he intended. He quotes Arlington County Board member Chris Zimmerman (who, presumably with a straight face, calls himself an economist) as saying:

"I personally don't agree that the roads should be free," he added. "We should be subsidizing mass transit, which has all kinds of benefits, as opposed to roads, which have all kinds of costs."

There's a reason why Arlington has often been compared to a People's Republic. In part, it’s because it elects “economists” to political office who can’t see the taxes for the subsidies.

 

Taxpayers already provide enormous subsidies to mass transit systems, sometimes to the tune of tens of thousands of dollars per rider. Ought we to pour even more money into such schemes? Zimmerman believes so. It makes me wonder if he's aware that gas tax money -- which is supposed to be used to maintain and build roads -- is poured into such subsidies. Perhaps he does (after all, he is a member of that galaxy-sized black hole called Metro). 

Unlimited or ill-considering tolling would only increase these wealth transfers… thus further undermining the case for pricing.

 

However, as the Reason Foundation’s Robert Poole, notes, the hurdles pricing faces aren’t prohibitive, at least for new road construction. Citing poll data from the National Cooperative Highway Research Program of the Transportation Research Board, Poole summarized the main findings thusly:

  1. The public wants to see value -- such as a new bridge or express lane they themselves can use for a better trip. The public prefers tangible and specific rationales, and responds well to pricing that creates a new choice, rather than one that's seen as trying to manipulate their behavior.

  2. The public cares about the use of toll revenues -- and clearly prefers them to be spent on improved transportation.

  3. The public learns from experience -- support for priced projects increases over time, as people see that they work.

  4. The public uses knowledge and information in forming their opinions -- hence, better explanations lead to increased support.

  5. The public believes in equity and fairness -- but this is more complex than it might first appear.

  6. The public wants simplicity -- which poses problems for complex schemes with rebates and other complications.

  7. The public favors tolls (by about two to one) over the alternative of a tax increase. In other words, if you want to charge tolls, do so on a road I haven’t “paid for” already, keep the scheme simple, explain it clearly, and do not divert the money to some other program.

And while we’re talking about how to ease congestion and pay for more blacktop, let us not forget something important about the cars themselves: They are also one of the most important inventions of the last century, increasing mobility, incomes, prosperity and freedom for uncounted millions of people. Oh, and they’ve also enhanced safety, increased recreation and… believe it or not… have produced “significant land-use benefits.”

 

Heck, it might be worth two bits here and there to keep that record of achievement intact.

 

-- April 21, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact info

 

Norman Leahy is vice president for public affairs at Tertium Quids, a conservative, nonprofit advocacy organization.

Read his profile here.

 

Contact:

   normanomt[at]

      hotmail.com