CONGESTION CHARGING MECHANISMS FOR ROADS, PART I—CONCEPTUAL FRAMEWORK

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Abstract
Parts I and II together investigates the implementation aspects of road pricing by setting down criteria for a ‘good’ road pricing system. Besides analyzing the gamut of indirect and direct methods of charging for road usage, the paper surveys alternative congestion pricing technologies including: 1) cordon pricing using manual tollbooths, 2) supplementary licensing, 3) off-vehicle recording systems such as automatic vehicle identification, commonly known as AVI, and 4) on-vehicle charging systems such as smart card technology. Each of these instruments is dealt with by a relatively in-depth case study analysis based on the benefits, costs and revenues of implementing and utilizing each charging mechanism. Since benefit figures are not always readily available, the cost per transaction of operating a system over the long run is used as an index of the relative cost-effectiveness of each technology. Based on alternative quantitative and qualitative criteria, the implications of using each of these technologies for tackling congestion are summarized in a key table and conditional policy recommendations are made.