Case Study Evaluation of a New Approach to Price Metropolitan Highways for Congestion Relief, Sustainability and Equity

This paper addresses the practically important challenge of devising efficient and politically feasible congestion pricing policies in the context of metropolitan highways. Congestion on metropolitan highways continues to grow while governments struggle to fund alternative modes of travel. The purpose of this paper is to explore the viability of a new approach to address highway congestion while also accommodating the mobility needs of those who don’t drive. It involves creating congestion-priced lanes on limited access highways without adding new lanes. The lanes would be taken from general use and reserved for high-occupancy vehicles (HOV), transit vehicles and toll-payers, with cash rewards paid to HOV and transit users to attract solo drivers to shared travel. Variable tolls charged to lower-occupancy vehicles on the dedicated lanes would limit traffic demand on the lanes, keep traffic flowing, and fund the cash rewards. Rewards would be high enough to attract a sufficient number of drivers to ride as passengers instead so that congestion would be eliminated on the toll lanes and reduced on the remaining toll-free lanes through mode shifts. The policy-level analysis using a real-world case study of a radial highway segment with directional peaking suggests that this congestion pricing/cash rewards strategy could generate surplus revenues and provide financial support for bus rapid transit operating on the congestion-free lanes.