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Incorporating Pricing Strategies into the NEPA Project Development Process

Learn how to integrate pricing strategies into project development process for reducing demand and preventing congestion, featuring real-world examples and potential benefits.

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Incorporating Pricing Strategies into the NEPA Project Development Process

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  1. Incorporating Pricing Strategies into the NEPA Project Development Process Patrick DeCorla-Souza Federal Highway Administration TRB Transportation Planning Applications Conference May, 2007

  2. Reducing Demand with “Substitutes” • Alternative modes • Transit - fare reductions, service improvements • Ridesharing – HOV time and cost advantages • Convenience – pre-trip and on-trip traveler information • Alternative destinations • Telecommuting • Alternative times • Flextime, staggered work hours

  3. Reducing Demand with Congestion Pricing • Combine “push” with “pull” strategies • Toll SOV in peak periods • Free service for HOV, park-and-ride, etc. • Reduced transit fare, frequent service, etc. • Examples: • Bridge pricing - Bay area and NYC: HOV toll discounts • Cordon pricing –Stockholm and London • Expressway pricing - Singapore • Parking pricing – Southern California

  4. Need Both “Pull” and “Push” for Success in Reducing Demand • “Pull” strategies are necessary but not sufficient: • Reduction in delays due to such shifts will cause “replacement” of reduced traffic by those who had previously been deterred by congestion • To ensure that congestion does not return – total user-borne cost for driving must stay the same • Delay “cost” must be replaced by money cost – a congestion toll

  5. Congestion Pricing Potential • Traffic reduction: • 15% in London • 20% in Stockholm • 71% of eligible motorists shifted time of travel at least once a week to get toll discounts in Ft. Myers, Florida • In Singapore, expressway traffic flows freely in the peak periods 95% of the time

  6. 5:00 a.m. 6:00 a.m. 9:00 a.m. 7:00 a.m. 8:00 a.m. I-66, Northern VA - March 5, 2007

  7. Preventing Flow Breakdown with Congestion Pricing • Toll “price” to manage demand for use of freeway: • Does not waste a resource (time) as in ramp metering • Toll cost is not a “wasted” resource – revenue can be used to reduce taxes, pay for alternative modes, or generate additional benefits • Main issues: • Motorist may decide to divert to alternative routes • But if lost throughput is regained, this will not increase congestion -- total vehicle throughput and speed will actually increase (e.g., I-66 example)

  8. Contact Info • Patrick DeCorla-Souza, Program Manager, Urban Partnerships, FHWA • Tel: 202-366-4076 • E-mail: Patrick.deCorla-Souza@dot.gov • Web page: www.fightgridlocknow.gov

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