The role of attitude structures,direct experience and reframing for the success of congestion pricing

Congestion pricing was introduced in Stockholm in 2006, first as a trial followed by a referendum, and permanently from 2007. Public attitudes to the charges became more negative during the period from the decision to the start of the system. Once the trial started, public attitudes became dramatically more positive over the following years, going from 2/3 against the charges to more than 2/3 in favor of the charges. Self-reported changes in behavior and attitudes considerably underestimate actual changes: about 3/4 of the decrease in car trips and more than half of the change in attitudes seem to have gone unnoticed by respondents, ex post. Self-interest and belief in the charges’ effectiveness strongly affect attitudes at any given point in time, but can only explain a minor part of the change in attitudes. I suggest that the debate and the shift in attitudes can be understood as a public and political reframing of the congestion charges over time.     

The development of public attitudes towards the Stockholm congestion trial

A full-scale congestion charging trial was carried out in Stockholm the first months of 2006. Almost half of respondents in a county-wide survey stated that they changed their attitudes towards congestion charges during the trial. Most of them became more positive.An analysis of media shows that the attitudinal change in media towards the trial coincides with the attitudinal change of the public. There was no dramatic change in the proportion of articles expressing a negative view. Instead, the result indicates that the increase in positive views was driven by a shift from neutral to positive articles during the trial.In order to ascertain why the public attitudes swung, we have analysed the anticipated and perceived effects of the trial. Generally, the analysis seems to indicate that improved understanding of the type and magnitude of concrete effects was not a main driving force behind the attitudinal change. Instead, it seems that the public attitude changed because personal experience gave a new understanding of the implications of the charges for the personal well-being. This would imply that trials, generally, may be a more useful tool than information in the process of implementing ‘difficult’ policy measures, such as congestion charges.     

Effects of alternative road pricing systems on network performance

Four road pricing systems, with charges based on cordons crossed, distance travelled, time spent travelling and time spent in congestion, have been tested using the congested assignment network model SATURN and its elastic assignment demand response routine, SATEASY. All tests have been based on a SATURN application of the city of Cambridge, with charges imposed inside an appropriate ring of bypasses. While initial results showed that congestion pricing achieved the greatest increase in average speed in the charged area, later analysis cast doubt on its superiority. Congestion pricing is able to distinguish more effectively the extent to which different types of journey contribute to congestion and achieves given reductions in travel at lower levels of charge. However, it is much less effective in reducing distance travelled and, by encouraging use of minor roads, may achieve far smaller environmental benefits. Time-based pricing performs better than the other systems on most indicators. Generally, the results suggest that when rerouting effects are included in the predictive modelling process the benefits of road pricing may be significantly smaller than previously expected.     

The Gothenburg congestion charge. Effects,design and politics

This paper summarizes the traffic effects of the Gothenburg congestion charges introduced in 2013. The system is similar to the system introduced in Stockholm in 2006; both are designed as time-of-day dependent cordon pricing systems. We find that many effects and adaptation strategies are similar to those found in Stockholm, indicating a high transferability between smaller and larger cities with substantial differences in public transport use. However, there are also important differences regarding some of the effects, the accuracy of the model forecasts and public support arising from different topologies, public transport use, congestion levels and main objectives communicated to the public. Finally, the Gothenburg case suggests that whether congestion charges are introduced or not depends on the support among the political parties, and that this is determined primarily by the prevailing institutional setting and power over revenues, and to a lower extent by the public support, and benefits from congestion reduction.     

Joint models of attitudes and behavior in evaluation of the San Diego I-15 congestion pricing project

Understanding attitudes held by the public about the acceptability, fairness, and effectiveness of congestion pricing systems is crucial to the planning and evaluation of such systems. In this study, joint models of attitude and behavior are developed to explain how both mode choice and attitudes regarding the San Diego I-15 Congestion Pricing Project differ across the population. Results show that some personal and situational explanations of opinions and perceptions are attributable to mode choices, but other explanations are independent of behavior. With respect to linkages between attitudes and behavior, none of the models tested found any significant effects of attitude on choice; all causal links were from behavior to attitudes.     

Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm

It is widely recognised that congestion pricing could be an effective measure to solve environmental and congestion problems in urban areas—a reform that normally also would generate a net welfare surplus. Despite this the implementation of congestion pricing has been very slow. One reason for a low public and political acceptance could be that equity impacts have not been given enough concern. In studies of distributional impacts of congestion pricing it has often been claimed that the reform is regressive rather than progressive even if there are studies claiming the opposite. We develop a method for detailed, quantitative assessment of equity effects of road pricing and apply it to a real-world example, namely a proposed congestion-charging scheme for Stockholm. The method simultaneously takes into account differences in travel behaviour, in preferences (such as values of time) and in supply of travel possibilities (car ownership, public transport level-of-service etc.). We conclude that the two most important factors for the net impact of congestion pricing are the initial travel patterns and how revenues are used. Differences in these respects dwarf differences in other factors such as values of time. This is accentuated by the fact that the total collected charges are more than three times as large as the net benefits. With respect to different groups, we find that men, high-income groups and residents in the central parts of the city will be affected the most. If revenues are used for improving public transport, this will benefit women and low-income groups the most. If revenues are used for tax cuts, the net benefits will be about equal for men and women on the average, while it naturally will benefit high-income groups. Given that it is likely that the revenues will be used to some extent to improve the public transport system, we conclude that the proposed congestion-charging scheme for Stockholm is progressive rather than regressive.     

The Smeed Report 50 years on: a role for the workplace parking levy?

Fifty years ago, Reuben Smeed chaired a study and produced a Report on the Economic and Technical Possibilities of Road Pricing. This report was to consider different methods of charging, including road pricing, to see if different pricing methods could reduce the problems associated with congestion as opposed to the traditional methods in place such as fuel tax. Since that time, various attempts have been made to introduce road pricing schemes but with only modest success so far. By contrast parking policies, a second-best alternative to road pricing, have been extensively used by local authorities as a means of managing congestion. The effectiveness of such policies, however, has been limited by an increase in the proportion of privately owned non-residential parking which is not under the control of local authorities. The aim of this paper is to present the results of an early-stage, post-implementation study of the Nottingham Workplace Parking Levy (WPL) – a measure that charges employers for the number of parking spaces they provide for their staff. Particular emphasis is placed on why a WPL was seen as being favourable compared to a road pricing alternative. The reason for this was that it could be introduced in a shorter time frame and at a lower cost, thus making it a lower risk option when compared with road pricing.     

Road pricing with complications

The rationale for congestion charges is that by internalising the marginal external congestion cost, they restore efficiency in the transport market. In the canonical model underlying this view, congestion is a static phenomenon, users are taken to be homogenous, there is no travel time risk, and a highly stylised model of congestion is used. The simple analysis also ignores that real pricing schemes are only rough approximations to ideal systems and that inefficiencies in related markets potentially affect the case for congestion charges. The canonical model tends to understate the marginal external congestion cost because it ignores user heterogeneity and trip timing inefficiencies. With respect to the relevance of interactions between congestion and congestion charges and tax distortions and distributional concerns, recent insights point out that there is no general case for modifying charges for such interactions. Therefore the simple Pigouvian rule remains a good first approximation for the design of road charging systems.     

A cost–benefit analysis of the Stockholm congestion charging system

This paper presents a cost–benefit analysis of the Stockholm congestion charging system, based on the observed rather than on the model-forecasted data. The most important data sources are travel time and traffic flow measurements made in the year before the charges were introduced (during April 2005) and during the first spring with the charges (during April 2006, 4 months after the charges were introduced). Using matrix calibration, effects on the non-observed link flows and travel times are extrapolated, enabling us to calculate the social value of changes in travel times and travel costs. Impacts on traffic safety and emissions are calculated using standard Swedish CBA relationships. The system is shown to yield a significant social surplus, well enough to cover both investment and operating costs, provided that it is kept for a reasonable lifetime: investment and startup costs are “recovered” in terms of social benefits in around 4 years.     

Users’ perceptions and willingness to pay in interurban toll roads: identifying differences across regions from a nationwide survey in Spain

Users’ acceptability is considered one of the key drivers for the successful implementation of transport policy measures. This is especially crucial in the case of toll roads since they are financed through drivers’ contributions. Previous literature in this field has mainly focused on measuring users’ attitudes towards urban congestion pricing strategies. However limited research has been developed concerning interurban toll roads. Previous research shows that socioeconomic variables are not conclusive to explain users’ perceptions towards tolls. By contrast, other drivers such as regional differences seem to play a more important role, especially when charging conditions within the same nation greatly vary across regions. This paper analyzes regional differences in users’ attitudes within an asymmetrical distribution of the toll road network across regions. Based on a nationwide survey conducted to road users in interurban toll roads in Spain, we develop both a binomial logit and a censored regression (tobit) model to explore drivers’ perceptions and willingness to pay. The research concludes that users from regions with a more extensive tolled network generally show a more negative attitude towards charges, but not necessarily a lower willingness to pay. The paper also points out that an asymmetrical distribution of toll roads across regions may result in negative perceptions among those users perceiving to be unfairly treated when compared to citizens in other regions.     

An evaluation of national road user charging in England

This paper explores the effects of road user charging throughout England. It develops a model to test charging scenarios including revenue raising and revenue neutral charging options, and economically efficient pricing. For each scenario we estimate effects on traffic volumes, user charges and fares, subsidies, environmental costs, benefits to consumers, government revenue, and overall net benefits. We show that appropriate charging structures coupled with compensating reductions in existing motoring taxes can make a real difference to traffic growth, congestion and environmental damage, and can relieve pressure to build new roads.     

Congestion and variable user charging as an effective travel demand management instrument

Interest at the political level in congestion charging is gaining pace as cities struggle with ways to reduce the effects of growing traffic congestion on the liveability of cities. Despite a long history of promotion of a wide array of travel demand management (TDM) initiatives, very few have had a noticeable impact on the levels of traffic on the road networks of metropolitan areas. TDM success in this context has almost become ‘band-aid’ in the absence of a pricing strategy that not only promotes efficient use of the system but also hypothecates revenues to support essential complementary infrastructure and services such as public transport. This paper takes a look at the stream of pricing consciousness that is surfacing around the world. Although very few jurisdictions have implemented congestion charging, or any form of efficient variable car and truck user charging, the winds of change are well in place. The adage “it is not a matter of if but of when” seems to be the prevailing view. Our overview of global trends in positioning the debate and hopefully follow-through commitment to implementation provides a backdrop to papers submitted for this special issue on travel demand management. The predominance of papers on pricing is indicative of the priority that must be given to efficient charging and revenue disbursement.     

Effect of advanced traveler information systems and road pricing in a network with non-recurrent congestion

The effect of the application of advanced transport information system (ATIS) and road pricing is studied in a transportation system under non-recurrent congestion. A stochastic network deterministic user equilibrium model (SNDUE) with elastic demand is formulated and used to evaluate the welfare and private impacts of different market penetrations of ATIS, together with road pricing for a simple network. Both marginal first-best road pricing and a second-best fixed road pricing are considered. The incentives of private users to use ATIS are analyzed and the characteristics of optimum tolls as a function of ATIS market penetration are shown. We conclude that ATIS is an efficient and necessary tool to reduce the effects of non-recurrent incidents in a transportation network, especially when non-recurrent congestion causes a significant deterioration of operational conditions of the network. If the impact of non-recurrent incidents on free flow costs is small or is reduced only to congestion effects, the use of road pricing would be more efficient. Social benefits obtained when jointly implementing ATIS and road pricing are practically the same whether first-best or second-best road pricing is used. Considering the private costs perceived by the network users, and the benefits experienced by equipped users, the maximum level of market penetration achieved could be limited because private benefits disappear after certain market penetration is obtained.     

Learning from Los Angeles: transport,urban form,and air quality

Los Angeles is well known around the world as an automobile-oriented low density community, yet recent transportation policies have emphasized greater capital investment in rail transportation than in highways, and recent policies have attempted to discourage automobile usage through transportation demand management. While these policies have accomplished small shifts toward public transport and somewhat lower dependence upon singly occupied automobilies for work commuting, the financial costs of these policy changes has been very large in relation to their benefits. Proper pricing of transportation alternatives, more creative use of new and emerging transportation technologies, and the provision of many more opportunities for simpler private sector transport services, would all appear to be more promising as cost-effective approaches to coping with congestion in Los Angeles than the current regional transportation policies.     

An assessment of the political acceptability of congestion pricing

There is renewed interest in implementing congestion pricing in metropolitan areas throughout the US. This paper reviews changes in the transportation policy environment that have led to this renewed interest and identifies the major interest groups that support congestion pricing. A case study is used to demonstrate that significant barriers to congestion pricing implementation continue to exist. The paper concludes with some suggestions for developing politically acceptable pricing alternatives.     

Understanding public response to a congestion charge: A random-effects ordered logit approach

Public acceptance is consistently listed as having an enormous impact on the implementation and success of a congestion charge scheme. This paper investigates public acceptance of such a scheme in Australia. Surveys were conducted in Brisbane and Melbourne, the two fastest growing Australian cities. Using an ordered logit modeling approach, the survey data including stated preferences were analyzed to pinpoint the important factors influencing people’s attitudes to a congestion charge and, in turn, to their transport mode choices. To accommodate the nature of, and to account for the resulting heterogeneity of the panel data, random effects were considered in the models. As expected, this study found that the amount of the congestion charge and the financial benefits of implementing it have a significant influence on respondents’ support for the charge and on the likelihood of their taking a bus to city areas. However, respondents’ current primary transport mode for travelling to the city areas has a more pronounced impact. Meanwhile, respondents’ perceptions of the congestion charge’s role in protecting the environment by reducing vehicle emissions, and of the extent to which the charge would mean that they travelled less frequently to the city for shopping or entertainment, also have a significant impact on their level of support for its implementation. We also found and explained notable differences across two cities. Finally, findings from this study have been fully discussed in relation to the literature.     

Congestion relief toll tunnels

Changing urban land-use patterns have reduced the importance of traditional downtowns as the origin and destination of numerous vehicular trips. Much traffic on downtown-area freeways seeks merely to get past downtown, thereby worsening the level of congestion for those seeking access to downtown.A number of European cities have begun to develop a new type of transportation facility: congestion-relief toll tunnels in downtown areas. These projects appear to be economically feasible largely or entirely from premium-price tolls paid by users. Hence, they are being developed by private consortia, operating under long-term franchises from government. Other keys to the feasibility of such projects are peak/off-peak pricing structures (congestion pricing), nonstop electronic toll collection, and restriction of use to auto-size vehicles only (to reduce tunnel dimensions and therefore capital investment).Preliminary analysis indicates that congestion-telief bypass runnels for downtown Los Angeles and San Francisco would be economically feasible as private business ventures, if developed along European lines. Similar approaches might be applied to other controversial freeway projects in both cities, and to restructuring Boston's huge and controversial Central Artery/Tunnel project.Congress has already authorized public-private partnerships of this type, permitting private capital and private owner/operation to be used, both for new projects and to rebuild existing highway, bridge, and tunnel facilities. Six states and Puerto Rico have enacted private-tollway legislation under which such projects could be developed and operated.This type of project should be politically feasible, since it offers a way to make significant transportation improvements in impacted downtowns with little or no public funding. While transit proponents may oppose the construction of toll tunnels, highway users are likely to support such projects, and some environmental groups may support this method of implementing congestion pricing in urban areas, because of its potential for reducing air emissions.     

A utility-theory analysis of automobile speed under uncertainty of enforcement

Highway automobile speed and uncertain enforcement of the speed limit are introduced into a standard household utility model having time and income constraints. Due to uncertainty, expected utility is maximized to obtain the optimal speed (in excess of the speed limit). The optimal amounts of all other commodities and travel are also obtained. The key feature of the model is the risk attitude of the driver and the effect on optimal speed of such attitude. A related feature is the effect of risk attitude on the amount of speed self-insurance. An important finding is that the risk avert (seeking, neutral) driver charges himself an insurance premium that is larger than (smaller than, equal to) what is actuarially sufficient. The relationship between speed, risk attitude, and efficient cost of automobile travel is developed and implications are explored. A parametric analysis is conducted to establish the effect on optimal speed (and other variables) of changes in such policy instruments as the price of gasoline, the probability of being caught exceeding the speed limit, the unit speed fine, and the speed limit. Policy implications of the theoretical results are part of the conclusions.     

Road pricing — an outsider's view of American experiences

Abstract

Substantial changes in urban transport policy have taken place over the past decade. The concern with expanding infrastructure and the preoccupation with providing sufficient road capacity to meet the increasing demand of unrestricted car use, which characterized transport policy in the 1950s and 1960s, has gradually given way to the idea that there is a need to restrain motor traffic if urban society is to function efficiently. A variety of restrictive physical traffic management, land use planning and economic policies have, in consequence, been pursued. One option which has attracted considerable attention in the academic literature, but which has been received more cooly by policy‐makers, is the possibility of optimizing urban traffic congestion through the imposition of road pricing. The introduction and relative success of the area licensing scheme in Singapore has added fuel to the arguments of the advocates of such a policy. This review is not directly concerned with either the experiment with road pricing in Singapore nor the theoretical debates which have taken place concerning the potential merits and defects of such policies but rather looks at the applied work in the United States which has looked into the practical implications of road pricing for its cities. Further, it seeks to explore, again drawing on American experiences, just why there has been so much opposition to the employment of economic pricing principles in the urban road transport market. The author presents the results of an SSRC sponsored study into the practical problems of introducing road pricing to cities in the United States.     

Time‐of‐day transit pricing: comparative US and international experiences

Experiences with time‐of‐day transit pricing in the U.S. are reviewed in this article and compared to those in other countries. Emphasis is placed on examining ridership, financial and efficiency impacts associated with time‐of‐day pricing, along with highlighting innovative approaches to implementing fare differentials. American time‐of‐day fare structures have been about evenly split between off‐peak discounts, peak‐period surcharges, and programmes involving differential rates of fare increases between peak and off‐peak hours. Although most American operators introduced time‐of‐day differentials to encourage ridership shifts to the off‐peak period, available evidence suggests that they have been only marginally successful in doing so. Off‐peak users were generally found to be far more fare‐sensitive to discounts than peak passengers were to surcharges. Only in a handful of American cities were significant efficiency and financial benefits from time‐of‐day pricing recorded, though in those few places, they tended to be substantial. The most successful American programmes have been those which collect fares on the basis of bus runs and direction of trips (rather than the exact time) and which aggressively market their programmes under the aegis of ‘bargain fares’. It is concluded that useful lessons can be gained by sharing policy insights from experiments with differential transit pricing in both the US and elsewhere.