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Could demand-based tolling unclog your roads?


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Test your knowledge of dynamic pricing - and learn how to keep traffic flowing.

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Could demand-based tolling unclog your roads?

  1. 1. Coulddemand- basedtolling unclogyourroads? Testyourknowledgeofdynamicpricing –andlearnhowtokeeptrafficflowing
  2. 2. Colorado concludeditwouldmakebetter useofexistinginfrastructure.2 California hasbeendoingit,like,forever, tomanagecongestion.3 Washington diditanduppedvehicle speedinalllanes.1
  3. 3. Dynamictollingisimproving trafficflowonthebusiestroads acrosstheUnitedStates. Byincreasingthecostoftollsinbusierperiods,and decreasingthemwhentrafficeases,highwayplanners arereducingpollution,makingjourneytimesmore predictable,andencouragingpeopletoconsider otheroptions.
  4. 4. Buttointroduceasuccessfulprogram, manyquestionsneedanswering.Suchas: Whatoutcomescanyourealisticallyexpect? Howandwhendoyousetyourrates? Whatdoesitcosttocollecttolls? Howdoyougetdriversonboard? Dynamictollingisaproven, powerfultooltoimproveroads andthequalityofpeople’slives.
  5. 5. Tohelpyoufindtheanswers –andtogiveyousomeotheruseful infoonhowdemand-basedtolling works–we’vedevelopedaquiz. Ready? Let’sgo.
  6. 6. Wefinethemseverely,asadeterrent Wesendthemapolitenoticewithnofine Wesendapolicecarafterthemtoenforcethetoll Whatdoyoudowhenacar withanout-of-statelicenseplate (whichdoesn’thaveatransponder) usestheexpresslane? A B C Q1
  7. 7. B Correct answer:
  8. 8. Manyhighwayauthorities operateagoodwillpolicy without-of-towners. Forthefirstcoupleofviolations,authoritiesmight sendcommunicationstothecarownerabouthow toinstallatransponderandusetheroadlegally. Thecarownerwouldonlyusuallyreceiveafine aftersuccessiveviolations.
  9. 9. 35 U.S. states operate toll facilities. active transponders are in use on U.S. roadways.4 55 Million
  10. 10. Howmuchadditionalannualrevenuecan youexpecttogeneratebyimplementing dynamicpricingonyourtollroad? 10% 30% 50% A B C Q2
  11. 11. Correct answer: Sorry–thatwasatrickquestion!
  12. 12. Dynamictollsreallyaren’tabout generatingrevenue.They’reabout changingpeople’stravelbehavior –andimprovingqualityoflife foreveryone. Tollscanbeanincentiveto: • Travelatlessbusytimes • Organizecarpools • Chooseadifferentmodeoftransportaltogether
  13. 13. The Federal Highway Administration estimates that widespread congestion pricing could reduce the need for capital investment by about 30%.5 30% ROAD WORK AHEAD Havingsaidthat, congestionpricingcan alsocontributeabig chunktoreducingroad maintenancecosts.
  14. 14. Q3 Considerthisscenario:trafficbuildsandslows onyour“generalpurpose”lanes.Soyouincrease theratefortheexpresslanetokeepitflowing –whichthenbecomesbusyitselfasotherlanes clear.Nowhowdoyouadjustyourrates? Idon’t.Trafficwillautomaticallygetbacktoastateofequilibrium Ilowerthetollfortheexpresslane Iwaitforanother30minutesbeforeadjustinganything A B C
  15. 15. Correct answer:
  16. 16. Experienceshowsthatdrivers areusuallyhappytopayforthe convenienceofspeed,butonly ifratesarefairandtransparent atalltimes.
  17. 17. The golden rule of dynamic pricing: the price drivers pay for the express lane must correspond to the true value of not being stuck. That’swhyit’scrucial thatyouadjustyour ratesinnearreal-time whentrafficflowchanges.
  18. 18. Q4 WhatpercentageoftheAmericanpublic isinfavorofroadtolls? 30% 47% 83% A B C
  19. 19. Correct answer:
  20. 20. Ifitmakestheirjourneysbetter, driversarewillingtopay.
  21. 21. of drivers are willing to pay back tolls for making roads – even existing interstates – safer, less congested and more reliable.6 Surveys show that people prefer paying tolls rather than taxes for funding necessary transportation projects.12 Tolls directly link the price to the benefit.7 83%
  22. 22. Q5 Whicharesafer? U.S.tollroads AllU.S.roads A B
  23. 23. Correct answer:
  24. 24. Tollroadsare3xsafer. Tollroadsareusuallyless congestedthannon-tollroads, leadingtofeweraccidents.8 Andmostmoderntolling systemsareall-electronic,so there’snoneedtostoptopay. Itreducestheriskofpile-ups.
  25. 25. An IBTTA study found that the fatality rate on toll roads is 3x less than the rate for all U.S. roads. (1.47 vs 0.50 per 100 million vehicle miles traveled).9 3x
  26. 26. Q6 Whatisthecheapestway toraisefundsforhighways? Collectinggastax All-electronictolling Theycostaboutthesame A B C
  27. 27. Correct answer:
  28. 28. Manypeoplethinkgastax istheeasiestandcheapest waytopayforhighways. Butelectronictoll collectioncomesclose.
  29. 29. According to a study, the cost of collecting tolls in a mature all-electronic tolling (AET) system is between 5% and 8% of the revenue collected.10 This suggests that toll collection costs can be similar to the costs of collecting federal and state motor fuel taxes.
  30. 30. Statescanexpectadramatic fallinrevenuefromfueltaxes aslow-emissionandelectric carsbecomecheaperandmore popular–soswitchingfrom afuel-taxmodeltoaroad-toll modellookslikethewayforward.
  31. 31. What’stheenvironmentalimpact ofelectronictollcollection? Improvesairquality Worsensairquality Nomeasurabledifference A B C Q7
  32. 32. Correct answer: A
  33. 33. Electronictollschemesreduceemissions. Astudyshowsthatelectronictollcollection attollplazaseliminates20%ofCO2 emissions comparedwithmanualcollection–because carsdon’tsitidlewithenginesrunning. Andopen-roadtollcollectioncaneven saveupto70%inemissions.11
  34. 34. Airquality:thecitypay-off. Citiesthatoperatecongestionpricinghave seenmassiveimprovementsinairquality: Singaporehasreducedemissionsbyan estimated175,000poundsofCO2 eachday. Stockholmhasengineereda10-14%drop inCO2 emissionsinitscentralarea.12
  35. 35. Q8 Howdoyouaddresstheprivacyconcernsof driverswhofearhighwayauthoritiescantrack theirmovementsusingtollingtransponders? There’snoneedtoworry.It’scustomerdataandassuchprotectedbylaw Thereisn’tmuchwecando.Ultimately,onceatransponderislinkedtoan account,wecantheoreticallyidentifywhenthevehicletravelledonatollroad Weofferanonymousprepaidaccounts A B C
  36. 36. Correct answer:
  37. 37. Therearemanywaystoprotect driverprivacy. Inordertodeterminethecorrecttoll,alltollcollectors needtoknowis: • Thevehicleclassification(truck,car,motorbike,etc) • Thedistancetravelled
  38. 38. Protecting driver identities is easy: It’s not necessary to identify the license plate unless there is a toll violation.
  39. 39. Manyauthoritiesrunningtollprograms makesuredriversknowthat: • Theyprotectappsandpayments,andmakethemPCIcompliant • Theylinkthetransponderandtheuser’sdatawithaninternal accountnumberthatdoesn’trevealtheiridentity • Thereisanoptiontocreateananonymouspre-paidaccount • Sensorsandcamerasonlydetectvehiclepositions –theydon’tstoreregistrationinformation
  40. 40. Youmadeitthrougheight toughquestionsondynamic pricingintolling. Wehopeyougotsomeuseful infooutoftheexercise.
  41. 41. Didyouknowthatcitiesaredoing demand-basedpricing,too? It’sproventobeasuper-effectivetoolinmanaginginner-city parking,reducingcongestionandsignificantlyimprovingair qualityinurbancenters. Soit’snosurprise:dynamicpricingisahottopic fortransportationplannersallovertheworld.
  42. 42. Getyourcopyhere The four principles of dynamic pricing in transportation How to adjust tolls and parking rates for faster, more efficient roadways Thegoodnews:we’ve writtenaneBookaboutit. Learnallaboutthebasicprinciplesof dynamicpricing–inparkingandtolling –inthis101primeronusingpricingto engineernewtravelbehaviors.
  43. 43. Sources 1 2 p.94 3 SbFfU73xuwsig2=l7-6WVLcmttwmxxB1-VHMQ 4 5 p.3 6 7 8 9 10 11 DECARBONIZATION OF TOLL PLAZAS: IMPACT ASSESSMENT OF TOLL COLLECTION SYSTEM MANAGEMENT. TRANSyT – Transport Research Center Madrid, 2013 12
  44. 44. © 2017 Conduent Business Services, LLC. All rights reserved. Conduent™ and Conduent Design™ are trademarks of Conduent Business Services, LLC in the United States and/or other countries. About Conduent Conduent is the world’s largest provider of diversified business process services with leading capabilities in transaction processing, automation, analytics and constituent experience. We work with both government and commercial customers in assisting them to deliver quality services to the people they serve. We manage interactions with patients and the insured for a significant portion of the U.S. healthcare industry. We’re the customer interface for large segments of the technology industry. And, we’re the operational and processing partner of choice for public transportation systems around the world. Whether it’s digital payments, claims processing, benefit administration, automated tolling, customer care or distributed learning – Conduent manages and modernizes these interactions to create value for both our clients and their constituents. Learn more at