Friday, June 04, 2010

Congestion Tolling

My memory from days when I knew this stuff better is that whether or not significant numbers of drivers are made worse off overall depends on what is done with the revenue. If it's collected and then lit on fire then it is actually the case that lots of drivers are made worse off. Travel time value savings are lower than the tolls for many drivers. If it's collected and then rebated back to members of the community or used to reduce taxes elsewhere then that isn't necessarily the case. The critical thing is what value commuters put on their travel time, the price they'd be willing to pay to reduce it, and people who have chosen (realizing choices are heavily constrained) a daily commute down a congested freeway or into a congested urban area have to a degree revealed that they are more likely to be people who don't mind driving in congested traffic as much as other people and therefore aren't willing to pay very much to reduce their travel time.