Developing Policy Framework of Dynamic Toll Pricing in India

Abstract

There are 543 toll plazas across the National Highways and State Highways in India and most of them are currently operating under Manual Toll Collection (MTC) system. The Government of India has recently adopted Electronic Toll Collection (ETC) system over MTC system, but, due to the technical constraints of toll plazas, they are either operating with both ETC and MTC systems or with MTC system only. The motive of switching from MTC to ETC is to reduce congestion and delay time. However, due to the fix toll charges for a vehicle type and heterogeneity in traffic mix, the peak hour traffic causes congestion that ultimately returns to enormous delay to users. The present study proposes the policy framework of Dynamic Toll Pricing (DTP) that alleviate the congestion at toll plazas by consisting of shifting traffic volume from peak/congested hours to off-peak/non-congested hours. This type of pricing proved to be one of the methods to control the traffic by elevating the toll in peak hours and thus giving discounts in off-peak hours. Such type of study about dynamic toll is not yet carried out for Indian scenario where traffic is highly heterogeneous. Hence, the main goal of the present study is to evaluate the DTP for the Indian condition and thus to examine the effect of discount and time saving on the shift in peak hour traffic demand. The observations revealed that most of the respondents are willing to shift in the morning peak hour than evening peak hour. The maximum shift was observed for small cars and for 25 % discount in toll charges. Further, the price elasticities of demand are calculated and are found to vary between -0.03 and -1.19 i.e. with 1 percent of discount the traffic volume changes between 0.03 % to 1.19 %. The output of the present study may set up a framework for DTP in India and may be used for analysing the travel choice behaviour models in future studies.