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TOWARDS A GENERAL MODEL OF HIGHWAY TOLLS

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  1. CENIT HIGHWAYS: COST AND REGULATION IN EUROPE TOWARDS A GENERAL MODEL OF HIGHWAY TOLLS Francesc Robusté Professor of Transportation Civil Engineering - Barcelona November 26, 2004 Towards a general model of highway tolls

  2. Toll: Existing New Free CITIZENS DO NOT “UNDERSTAND” TOLLS AS A FINANCING TOOL Inexistence of a coherent “model”:Or does not exist a model, or it is difficult to understand Towards a general model of highway tolls

  3. WE NEED A GLOBAL MODEL • Europe needs a global and coherent model of toll highways… • … based in user’s perceived service… • … that integrates networks of high performance roads • Metropolitan vs. inter-urban highways • Network vs. individual corridors Towards a general model of highway tolls

  4. Evolution of tolling concepts 1 Tolling as financial source for construction and operation expenses Historic concept 2 Value Pricing (Congestion Pricing or Rush-Period Pricing) • Road Pricing • HOT Lanes • Variable tolls • FAIR Lanes • Vehicle Use Pricing • Pay-as-you-drive • Vehicle taxation • Car Sharing • Parking Pricing • Parking Cash Out • Quality pricing 3 New trends Service Pricing (User pays per service quality) EVOLUTION OF TOLL CONCEPTS Towards a general model of highway tolls

  5. TOWARDS A NEW CONCEPT: SERVICE PRICING • Improved performance with respect to alternative roads in inter-urban environment • Road safety, trip time reliability and total time, externalities, etc. • Level of congestion (value pricing) in metropolitan environment • Time saved in motorway vs. time spent in alternative roads • Financing/operation of the infrastructure (traditional toll) • It represents a step ahead with respect to value pricing (it includes it in metropolitan environments) • The fee/tax/charge for using the highway is a price calibrated according to: Towards a general model of highway tolls

  6. TOLL HIGHWAY OPERATORS Empirically, the revenues generated by the “service toll”, overcome the financing revenues: private financing is guaranteed under a new economically sound umbrella • CLEARIFY THE BUSINESS EXPECTATIONS OF THE PRIVATE INITIATIVES AS OPERATORS • MOTIVATE THE OPERATOR FOR A CONTINUOUS IMPROVEMENT • DEFINE AND REGULATE THE SERVICE QUALITY TO FULFIL THE ROAD USERS AND THE SOCIETY EXPECTATIONS Towards a general model of highway tolls

  7. A GLOBAL MODEL OF ROAD PRICING(1) • VARIABLE TOLL CALCULATED FOR NON-FINANCING REASONS (BUT REVENUES SHOULD MAKE ANY FINANCING OPERATION FEASIBLE) • VARIABLE CONCESSION PERIOD • EXPLICITATE THE CUMULATIVE NET PRESENT VALUE OF THE REVENUES (NPVR)… • … CONTROLING THE OPERATION AND MAINTENANCE COSTS • … AND THE SERVICE QUALITY Methodology … Towards a general model of highway tolls

  8. a b A theoretical application of the model has been done in Catalonia, Spain (a) Integrating congestion charge + price for better service (b) Toll mitigation toll when the alternative is “unreasonable” Towards a general model of highway tolls

  9. Toll collection technology How? Pricing strategy (policy, structure) To whom? When? How much? Topology Where? Components of a global pricing strategy Towards a general model of highway tolls

  10. Pricing strategy • Setting correct charge levels and charging periods is critical, mainly on: • The effects on travel behavior • Public acceptance • A new pricing policy should recognize the existing “demand segments” on the network: • Period based eligibility (rush hour period, weekends, labor days) • User based eligibility (origins and destinations, frequent users, occupancy) • Vehicle based eligibility (vehicle type, energy, pavement & pollution effects, public vehicles) • Variable/dynamic pricing strategies could help to improve demand management Towards a general model of highway tolls

  11. HIGH ECT Evolution over the last four decades HIGH Toll Booths Automatic coin / card machine On trip contribution expected from drivers Interference with traffic flow Late 80’s Early 90’s Mid 90’s Monolane High Speed ETC Monolane Low Speed ETC Multilane Free Flow ETC NIL NIL 80’s 90’s 00’s 60’s 70’s Technology (ETC) allows the implementation of a new model Towards a general model of highway tolls

  12. Conclusions Towards a general model of highway tolls

  13. CONCLUSIONS • Direct tolls used as financing mechanism should evolve to a tax/charge/fee: • Better performance of toll motorways in inter-urban corridors • Congestion charge in metropolitan areas (parking fee prices should also be integrated: + expensive if they are + central and there is + UPT supply) • Revenues are devoted to improvements of the whole transportation system • Road operation and maintenance • Toll integration and discounts in large metropolitan areas • Investments and subsidies to UPT and eco-mobility • We need a new global and coherent model for EUROPE • Private operators regulated by public Administration • Mobility management integration + independent regulator entity Towards a general model of highway tolls

  14. FOR MORE INFORMATION f.robuste@upc.edu Towards a general model of highway tolls