Could demand- based tolling unclog your roads?Test your knowledge of dynamic pricing – and learn how to keep traffic flowing

Coloradoconcluded it would make better use of existing infrastructure.2

Californiahas been doing it, like, forever,

to manage congestion.3

Washingtondid it and upped vehicle

speed in all lanes.1

Dynamic tolling is improving traffic flow on the busiest roads across the United States.By increasing the cost of tolls in busier periods, and decreasing them when traffic eases, highway planners are reducing pollution, making journey times more predictable, and encouraging people to consider other options.

But to introduce a successful program, many questions need answering. Such as:

What outcomes can you realistically expect? How and when do you set your rates? What does it cost to collect tolls? How do you get drivers on board?

Dynamic tolling is a proven, powerful tool to improve roads and the quality of people’s lives.

To help you find the answers – and to give you some other useful info on how demand-based tolling works – we’ve developed a quiz.

Ready? Let’s go.

We fine them severely, as a deterrent

We send them a polite notice with no fine

We send a police car after them to enforce the toll

What do you do when a car with an out-of-state license plate (which doesn’t have a transponder) uses the express lane?

A

B

C

Q1

B

Correct answer:

Many highway authorities operate a goodwill policy with out-of-towners.For the first couple of violations, authorities might send communications to the car owner about how to install a transponder and use the road legally. The car owner would only usually receive a fine after successive violations.

35

U.S. states operate toll facilities.

active transponders are in use on U.S. roadways.4

55 Million

How much additional annual revenue can you expect to generate by implementing dynamic pricing on your toll road?

10%

30%

50%

A

B

C

Q2

Correct answer:Sorry – that was a trick question!

Dynamic tolls really aren’t about generating revenue. They’re about changing people’s travel behavior – and improving quality of life for everyone.Tolls can be an incentive to:

• Travel at less busy times

• Organize carpools

• Choose a different mode of transport altogether

The Federal Highway Administration estimates that widespread congestion pricing could reduce the need for capital investment by about 30%.5

30%

ROADWORKAHEAD

Having said that, congestion pricing can also contribute a big chunk to reducing road maintenance costs.

Q3Consider this scenario: traffic builds and slows on your “general purpose” lanes. So you increase the rate for the express lane to keep it flowing – which then becomes busy itself as other lanes clear. Now how do you adjust your rates?

I don’t. Traffic will automatically get back to a state of equilibrium

I lower the toll for the express lane

I wait for another 30 minutes before adjusting anything

A

B

C

Correct answer:

Experience shows that drivers are usually happy to pay for the convenience of speed, but only if rates are fair and transparent at all times.

The golden rule of dynamic pricing: the price drivers pay for the express lane must correspond to the true value of not being stuck.

That’s why it’s crucial that you adjust your rates in near real-time when traffic flow changes.

Q4

What percentage of the American public is in favor of road tolls?

30%

47%

83%

A

B

C

Correct answer:

If it makes their journeys better, drivers are willing to pay.

of drivers are willing to pay back tolls for making roads – even existing interstates – safer, less congested and more reliable.6

Surveys show that people prefer paying tolls rather than taxes for funding necessary transportation projects.12 Tolls directly link the price to the bene�t.7

83%

Q5

Which are safer?

U.S. toll roads

All U.S. roads

A

B

Correct answer:

Toll roads are 3x safer.

Toll roads are usually less congested than non-toll roads, leading to fewer accidents.8 And most modern tolling systems are all-electronic, so there’s no need to stop to pay. It reduces the risk of pile-ups.

An IBTTA study found that the fatality rate on toll roads is 3x less than the rate for all U.S. roads. (1.47 vs 0.50 per 100 million vehicle miles traveled).9

3x

Q6

What is the cheapest way to raise funds for highways?

Collecting gas tax

All-electronic tolling

They cost about the same

A

B

C

Correct answer:

Many people think gas tax is the easiest and cheapest way to pay for highways.

But electronic toll collection comes close.

According to a study, the cost of collecting tolls in a mature all-electronic tolling (AET) system is between 5% and 8% of the revenue collected.10 This suggests that toll collection costs can be similar to the costs of collecting federal and

state motor fuel taxes.

States can expect a dramatic fall in revenue from fuel taxes as low-emission and electric cars become cheaper and more popular – so switching from a fuel-tax model to a road-toll model looks like the way forward.

What’s the environmental impact of electronic toll collection?

Improves air quality

Worsens air quality

No measurable difference

A

B

C

Q7

Correct answer:

A

Electronic toll schemes reduce emissions.

A study shows that electronic toll collection at toll plazas eliminates 20% of CO2 emissions compared with manual collection – because

cars don’t sit idle with engines running. And open-road toll collection can even

save up to 70% in emissions.11

Air quality: the city pay-off.Cities that operate congestion pricing have seen massive improvements in air quality:

Singapore has reduced emissions by an estimated 175,000 pounds of CO2 each day.

Stockholm has engineered a 10-14% drop in CO2

emissions in its central area.12

Q8How do you address the privacy concerns of drivers who fear highway authorities can track their movements using tolling transponders?

There’s no need to worry. It’s customer data and as such protected by law

There isn’t much we can do. Ultimately, once a transponder is linked to an account, we can theoretically identify when the vehicle travelled on a toll road

We offer anonymous prepaid accounts

A

B

C

Correct answer:

There are many ways to protect driver privacy.In order to determine the correct toll, all toll collectors need to know is:

• The vehicle classification (truck, car, motorbike, etc)

• The distance travelled

Protecting driver identities is easy: It’s not necessary to identify the license

plate unless there is a toll violation.

Many authorities running toll programs make sure drivers know that: • They protect apps and payments, and make them PCI compliant

• They link the transponder and the user’s data with an internal account number that doesn’t reveal their identity

• There is an option to create an anonymous pre-paid account

• Sensors and cameras only detect vehicle positions – they don’t store registration information

You made it through eight tough questions on dynamic pricing in tolling.

We hope you got some useful info out of the exercise.

Did you know that cities are doing demand-based pricing, too?It’s proven to be a super-effective tool in managing inner-city parking, reducing congestion and significantly improving air quality in urban centers. So it’s no surprise: dynamic pricing is a hot topic for transportation planners all over the world.

Get your copy here

The four principles of dynamic pricing in transportationHow to adjust tolls and parking rates for faster, more efficient roadways

The good news: we’ve written an eBook about it. Learn all about the basic principles of dynamic pricing – in parking and tolling – in this 101 primer on using pricing to engineer new travel behaviors.

Sources1 http://www.itsinternational.com/sections/cost-benefit-analysis/features/mounting-benefits-of-dynamic-tolling-project/

2 http://ibtta.org/sites/default/files/A%20Guide%20for%20HOT%20Lane%20Development%20FHWA.pdf p.94

3 https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjPz8vnm_LNAhWMIMAKHSo3C5wQFggmMAE&url=http%3A%2F%2Fwww.wctrs-society.com%2Fwp%2Fwp-content%2Fuploads%2Fabstracts%2Fberkeley%2FE5%2F623%2FWCTR2007_LouYinLaval.doc&usg=AFQjCNF4aZnfyyj4iot0_0p-SbFfU73xuw&sig2=l7-6WVLcmttwmxxB1-VHMQ

4 http://ibtta.org/sites/default/files/documents/IBTTA%20Publications/National%20Toll%20Facilities%20Usage%20Analysis.pdf

5 https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50150-Federal_Highway_Spending-OneCol.pdf p.3

6 http://ibtta.org/blog/83-americans-support-tolls-improve-existing-highways

7 http://ops.fhwa.dot.gov/publications/fhwahop08039/cp_prim1_08.htm#faq3

8 http://ibtta.org/sites/default/files/documents/MAF/2015_FactsInBrief_Final.pdf

9 http://ibtta.org/sites/default/files/documents/MAF/2015_FactsInBrief_Final.pdf

10 http://ibtta.org/publication/debunking-myths-highway-tolling

11 DECARBONIZATION OF TOLL PLAZAS: IMPACT ASSESSMENT OF TOLL COLLECTION SYSTEM MANAGEMENT. TRANSyT – Transport Research Center Madrid, 2013

12 http://ops.fhwa.dot.gov/publications/fhwahop08039/cp_prim1_08.htm#faq3

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