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Credit-based congestion pricing: a policy proposal and the public's response

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  • Kockelman, Kara M.
  • Kalmanje, Sukumar

Abstract

Credit-based congestion pricing (CBCP) is a novel strategy proposed here. A revenue-neutral policy where road tolls are based on the negative externalities associated with driving under congested conditions, its generated tolls are returned to all licensed drivers in a uniform fashion, as a sort of driving "allowance". Essentially, the "average" driver pays nothing, while frequent long-distance peak-period drivers subsidize others, in effect paying them to stay off congested roads. In order to anticipate initial public response to a CBCP policy, 500 individuals completed a detailed survey regarding perceptions of, and likely travel reactions to, such a policy. Weights were developed to correct for survey biases in gender, age and household income. Analytical results suggest that 25% support this new strategy, and support is strongly related to familiarity with the concept of congestion pricing. Respondent estimates of congested travel times to work or school are almost double the uncongested times. Values of travel time vary greatly across respondents, as also trip flexibility. Those without children, younger respondents, and those with fewer vehicles appear more willing to support such a policy and more likely to modify their travel behaviors. Older people and full time employed people were willing to pay higher CBCP tolls to drive during peak hours and so were men as compared to women. The survey results corroborate the potential of a CBCP policy to alleviate congestion and generate benefits across income groups and traveler types.

Suggested Citation

  • Kockelman, Kara M. & Kalmanje, Sukumar, 2005. "Credit-based congestion pricing: a policy proposal and the public's response," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 671-690.
    • Handle: RePEc:eee:transa:v:39:y:2005:i:7-9:p:671-690
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