Value Pricing as a Congestion Management Tool

This paper examines the basic idea behind the use of value pricing as a congestion management tool and then the paper examines several operational value pricing projects. Value pricing offers the ability to price travel in such a manner that travel demand remains below the point at which significant congestion occurs. This makes value pricing is particularly effective at combating congestion due to its relative immunity to the effect of triple convergence. Value pricing can take many forms, but three of the most common are cordon (or area) pricing, variable priced facilities, and High Occupancy/Toll (HOT) lanes. This paper takes a brief look at examples of each of these value pricing styles including those used in London, Stockholm, Lee County, Southern California, Houston, and Minnesota. Based on the results from these projects, it is clear that value pricing can offer congestion relief, but can also be politically difficult to implement. Therefore, it is likely that there will continue to be slow progress in implementing value pricing, with a focus on less controversial projects including HOT and managed lanes.