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Credit-based congestion pricing: A Dallas-Fort Worth application


  • Gulipalli, Pradeep K.
  • Kockelman, Kara M.


Under a credit-based congestion pricing policy, net revenues are distributed uniformly among qualifying travelers, to partially offset toll payments. This work predicts the traffic impacts, air-quality changes, welfare effects, and system implementation costs of such a policy, as applied to the Dallas-Fort Worth (DFW) region of Texas. Joint destination-mode choice models were estimated and applied. The status quo and two marginal cost pricing (MCP) scenarios were simulated for the short and long terms, with full feedback of trip costs and times. Monetarized logsum differences suggest that marginal cost pricing of congested freeways in this urban region, followed by travel credit distribution to all workers, is welfare improving for the great majority of such travelers. Moreover, high levels of recurring congestion (V/C ratios exceeding 1.5) are predicted to practically disappear.

Suggested Citation

  • Gulipalli, Pradeep K. & Kockelman, Kara M., 2008. "Credit-based congestion pricing: A Dallas-Fort Worth application," Transport Policy, Elsevier, vol. 15(1), pages 23-32, January.
  • Handle: RePEc:eee:trapol:v:15:y:2008:i:1:p:23-32

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    References listed on IDEAS

    1. Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    2. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
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    Cited by:

    1. repec:kap:transp:v:45:y:2018:i:2:d:10.1007_s11116-016-9745-z is not listed on IDEAS
    2. Kockelman, Kara M. & Lemp, Jason D., 2011. "Anticipating new-highway impacts: Opportunities for welfare analysis and credit-based congestion pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 825-838, October.
    3. Fan, Wenbo & Jiang, Xinguo, 2013. "Tradable mobility permits in roadway capacity allocation: Review and appraisal," Transport Policy, Elsevier, vol. 30(C), pages 132-142.
    4. repec:gam:jsusta:v:10:y:2018:i:10:p:3528-:d:173106 is not listed on IDEAS

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