The Value Of Pricing The Use Of Roads

Abstract

Value pricing is a market-based approach to reduce the waste associated with traffic congestion. It typically involves charging tolls for road use but can encompass a variety of other market-based approaches. The Federal Highway Administration (FHWA) encourages the use of value pricing strategies to reduce congestion, improve transportation system performance, and promote mobility through its Value Pricing Pilot Program. The FHWA is currently working with partners in 12 states to demonstrate the feasibility and benefits of value pricing. Successfully implemented projects exist on highway facilities in California, Texas, Florida, New York, and New Jersey. Additionally, several feasibility studies, preimplementation studies, and pilot simulation tests are under way in these and other states. This article describes various types of value pricing projects and presents what we have learned from those projects that have already been implemented. The article concludes with a discussion of proposals for the future.