PRICING THE USE OF HIGHWAY INFRASTRUCTURE: RESULTS FROM A FEDERAL PILOT PROGRAM

This paper describes how value pricing is a market-based approach used to reduce the waste associated with traffic congestion. It typically involves charging tolls for road use, but can encompass a variety of other market-based approaches. The Federal Highway Administration (FHWA) encourages the use of value pricing strategies to reduce congestion, improve transportation system performance, and promote mobility and transportation choices through its Value Pricing Pilot Program. FHWA is currently working with partners in 12 states to demonstrate the feasibility and benefits of value pricing. Successfully implemented projects exist on highway facilities in California, Texas, Florida, New York, and New Jersey. Additionally, several feasibility studies, pre-implementation studies and pilot simulation tests are underway in these and other states. This paper describes various types of value pricing projects and presents what we have learned from those projects that have already been implemented. The paper concludes with a discussion of proposals for the future.