INTRODUCING CONGESTION PRICING ON A NEW TOLL ROAD

A demonstration project to test the effectiveness of congestion pricing in an urban area is proposed. The general theoretical case for such pricing is reviewed, and recent international interest in congestion pricing is summarized. The need for demonstration projects is outlined, both to add to current knowledge about the effectiveness of congestion pricing and to address political and other public-acceptance barriers to implementation of the concept. A new toll road being planned for Orange County, California, is proposed as a test site for congestion pricing. It is suggested that, instead of charging flat-rate tolls, the transportation agency could charge peak and off-peak tolls, increasing the level of the peak charge each year over a period of up to 10 years, until toll revenues decline below the levels forecast under the flat-rate toll alternative. Measurements of traffic flow and ridesharing behavior would be made, as well as calculations of emission-reduction effects. Finally, a brief discussion of marketing and political considerations involved in conducting such a demonstration is provided.