INTRODUCING CONGESTION PRICING ON A NEW TOLL ROAD

This paper proposes a demonstration project to test the effectiveness of ''congestion pricing'' in an urban area. It reviews the general the oretical case for such pricing and summarizes recent international int erest in congestion pricing. Next, it sets forth the reasons why demon stration projects are needed, both to add to our knowledge about how e ffective congestion pricing may prove to be, and to address political and other public-acceptance barriers to implementation of the concept. The paper then defines a specific proposed test site for congestion p ricing: a new toll road being planned for Orange County, California. I t is proposed that instead of charging flat-rate tolls, the transporta tion agency could charge peak and off-peak tolls, increasing the level of the peak charge each year over a period of up to 10 years unless o r until toll revenues decline below the levels forecast under the flat -rate toll alternative. Measurements of traffic flow and ride-sharing behavior would be made, as well as calculations of emission-reduction effects. The paper concludes with a brief discussion of marketing and political considerations involved in conducting such a demonstration.