Using Congestion-Priced Road User Charges to Restore Metropolitan Mobility and Fund Highways

Abstract

The purpose of this paper is to introduce and evaluate a congestion-pricing strategy that could be used in metropolitan areas to supplement revenue generation mechanisms such as mileage-based user fees and fuel taxes. Congestion charges would be applied with transponder-based technology only on limited access metropolitan highway facilities to pay for the costs of their reconstruction and maintenance. Since most of the worst congestion in metropolitan and state roadways occurs on limited access facilities, this strategy would address the goal of restoring mobility without raising the kinds of privacy concerns that appear with regard to other types of more comprehensive road user charging systems that use location-based technology, such as mileage-based user fees. Proceeds from congestion charges could be used to pay for new low-cost, part-time (dynamic) shoulder travel lane capacity and transit and carpooling enhancements. This approach can increase public acceptability by providing multimodal travel alternatives. The paper discusses the strategy in the context of the reconstruction of the freeway system in a hypothetical metropolitan area, with an availability payment public–private partnership project delivery model to design, finance, build, operate, and maintain the improved freeway network. The analysis presented in the paper suggests that the approach could be financially viable and more economically efficient than conventional transportation funding approaches.