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Electronic Payment & Pricing > Pricing


Pricing, also known as congestion pricing or value pricing, employs the use of technologies to vary the cost to use a transportation facility or network based on demand or the time of day. Pricing strategies include: variable priced lanes, variable tolls on entire roadways or roadway segments, cordon charging, area-wide charging and fast and intertwined regular (FAIR) lanes.


Deployment of freeway congestion pricing system in 5 major U.S. metropolitan areas estimated to cost $1.8 billion (13-17 January 2008)

The capital cost to install a next generation transit signal priority system in the Portland area was estimated at $500,000.(06/01/2010)

Minnesota Urban Partnership Agreement project costs total $380 million over a 10-year post-deployment timeframe. (January 4, 2013)

Between 2003 and 2007, annual operating costs and revenues at 15 tolling agencies averaged $85.825 million and $265.753 million, respectively.(2011)

Between 2003 and 2008 operating costs for cordon pricing in European cities ranged from $9.2 million to $238.5 million.(2011)

Operating costs of Mileage-based user fee programs can be as low as 7 percent of total system revenue and are more cost-effective than many other types of variable pricing systems.(2011)

Operating costs of Mileage-based user fee programs can be as low as 7 percent of total system revenue and are more cost-effective than many other types of variable pricing systems.(2011)

Operating costs of Mileage-based user fee programs can be as low as 7 percent of total system revenue and are more cost-effective than many other types of variable pricing systems.(2011)

Estimates to implement and operate a comprehensive VMT-based charging system for all road use in the Netherlands by 2016 averaged $2.255 billion and $667.59 million per year, respectively.(2011)

Capital cost estimates to implement MnPASS dynamic pricing on freeway shoulder lanes ranged from $6 million to $23 million per mile.(September 2010)

Annual operating costs for congestion pricing systems can exceed $161,000,000.(September 2009)

In California, the Orange County Transportation Authority (OCTA) purchased a four-lane 10-mile long limited access variable toll facility for $207.5 million.(August 2008)

Value pricing projects conducted in three metropolitan areas indicated the costs to convert HOV lanes to HOT lanes ranged from $9 million to $17.9 million.(August 2008)

In the Seattle metropolitan area, a network wide variable tolling system would cost roughly $749 million to implement and $288 million to operate each year.(April 2008)

Cost estimates of operational concepts for converting HOV lanes to managed lanes on I-75/I-575 in Georgia range from $20.9 million to $23.7 million.(April 2006)

London congestion pricing annual O&M costs are estimated at £92 million.(January 2006)

The cost to convert two reversible high-occupancy vehicle lanes on an eight-mile stretch of the Interstate-15 in San Diego to high-occupancy toll lanes was $1.85 million. Evidence also suggests that costs to build new high-occupancy toll lanes are substantially higher, but financially feasible.(Spring 2000)

Toll plaza structure - Capital cost/unit - $15000 - O&M cost/unit - $500 - Lifetime - 8 years(2/4/2013)

Onboard unit (OBU) - Capital cost/unit - $225(2011)

Onboard unit (OBU) - Capital cost/unit - $225(2011)

Onboard unit (OBU) - Capital cost/unit - $225(2011)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

High-Occupancy Toll Lane (HOT lane) - Capital cost/unit - $9500000 - O&M cost/unit - $50000 - Lifetime - 20 years(September 2010)

Pager service - Capital cost/unit - $55(July 2009)

Software for Dynamic Electronic Tolls - O&M cost/unit - $225000(September 2008)

Integration for Dynamic Electronic Tolls - O&M cost/unit - $225000(September 2008)

Labor for HOT lanes management - O&M cost/unit - $225000(September 2008)

Smart Parking Reservation Website - O&M cost/unit - $1000(June 2008)

Smart Parking Reservation Secure Communication - O&M cost/unit - $1000(June 2008)

Electronic Toll Reader - Capital cost/unit - $15000 - O&M cost/unit - $500 - Lifetime - 8 years(07/28/2006)

Travel times decreased by at least 25 percent on SR 520 after deployment of pricing and electronic tolling.(12/02/2014)

Deployment of variable rate, all-electronic, open road tolling on SR-520 Bridge near Seattle yielded $55 million of revenue in 2012.(12/02/2014)

Traffic volumes declined by 34 percent on SR 520 after deployment of pricing and electronic tolling.(12/02/2014)

After deployment of pricing and electronic tolling on SR 520, travel-time reliability improved by 6 to 13 minutes during peak periods on that route.(12/02/2014)

After tolling the SR 520 Bridge, mean travel speeds increased by over 10 mi/h in both directions during both peak periods.(12/02/2014)

Emissions decreased by 30 to 37.9 percent and fuel consumption decreased by 32.2 percent on the SR 520 bridge after electronic tolling was deployed.(12/02/2014)

Transit ridership increased by 38 percent on SR 520 after deployment of pricing and electronic tolling.(12/02/2014)

On-time performance of transit trips across the SR 520 bridge improved by 42 percent during peak periods after deployment of electronic tolling.(12/02/2014)

Benefits from an initial HOT lanes deployment in Minneapolis St. Paul were maintained in the long term, while a system expansion resulted in fewer benefits, but at a much cheaper cost.(April 2013)

Full deployment of mobility applications may be capable of eliminating more than 1/3rd of the travel delay that is caused by congestion.(12/10/12)

Annual boardings for the I-85 Xpress bus service increased seven percent, more than twice as fast as Xpress bus services in other areas of the city after HOT lanes were implemented to address congestion on I-85 in Atlanta.(16 July 2012)

A mileage-based user fee study in Minnesota generated nearly $38,000 in simulated revenue over six months.(02/01/2013)

A mileage-based user fee study in Minnesota generated nearly $38,000 in simulated revenue over six months.(02/01/2013)

A multi-modal ICM strategy designed for the I-95/I-395 corridor has potential to increase person throughput 14 to 38 percent.(June 2014)

A multi-modal ICM strategy designed for the I-95/I-395 corridor has potential to reduce average travel times 48 to 58 percent.(June 2014)

A multi-modal ICM strategy designed for the I-95/I-395 corridor has projected benefit-to-cost ratios ranging from 4:1 to 6:1.(June 2014)

A multi-modal ICM solution for the I-95/I-395 corridor would cost approximately $7.45 Million per year.(June 2014)

A multi-modal ICM strategy designed for the I-95/I-395 corridor has potential to reduce fuel consumption 33 to 34 percent.(June 2014)

Speeds in general purpose lanes slightly increased with the implementation of HOT lanes.(November 2006)

Enabling connected vehicles to pay for priority at signalized intersections yields a benefit cost of at least 1.0 at 20 percent CV penetration and as much as 3.0 at 10 percent CV penetration when including reduced network delay for all vehicles.(08/01/2015)

Benefit-cost ratio of 6.0:1 obtained from converting high-occupancy vehicle (HOV) to high-occupancy toll (HOT) lanes, adding Priced Dynamic Shoulder Lane (PDSL), MARQ2 express bus lanes, and other improvements.(January 4, 2013)

During the planned expansion of the I-15 HOT lanes in San Diego a survey of facility users found that 71 percent considered the extension fair with few differences based on ethnicity or income.(February 2011)

Variable Pricing Systems worldwide indicate an increase in transit use and improved travel times and speeds system wide (priced lanes and general purpose lanes).(February 2011)

The conversion of HOV to HOT lanes on I-394 reduced mainline crashes by 5.3 percent.(23-27 January 2011)

Cordon pricing in Stockholm and Milan contributed to transit ridership increases of 4.5 percent and 5.7 percent respectively.(2011)

Navigation systems with eco-routing features can improve fuel economy by 15 percent.(January 2011)

Conversion of HOV to HOT lanes decreases express bus travel time from 25 to 8 minutes, increases bus speeds from 18 to 55 mph, and increases reliability and ridership.(January 2011)

Cordon pricing in Stockholm contributed to a 3.6 percent reduction in crashes.(2011)

Operating costs of Mileage-based user fee programs can be as low as 7 percent of total system revenue and are more cost-effective than many other types of variable pricing systems.(2011)

Cordon pricing contributed to a 14 percent reduction in climate gases in Stockholm and a 14 percent reduction in airborne particulate matter in Milan.(2011)

In Singapore, the Electronic Road Pricing program has enabled maintaining target speeds of 45 to 65 kilometers per hour on expressways and 20 to 30 kilometers per hour on arterials.(12/01/2010)

The Stockholm congestion tax project reduced traffic congestion by 20 percent and vehicle emissions by 10 to 14 percent in the Central Business District.(12/01/2010)

In Germany, vehicle-miles traveled using cleaner trucks (Euro 4 and 5) rose 60 percent from 2 percent in 2005 to over 62 percent in 2009 because of the nationwide heavy-goods-vehicle tolling program.(12/01/2010)

After implementation of the congestion charge in London, the number of vehicles entering the charging zone decreased by 25 percent, travel speeds increased by 30 percent, trip times decreased by 14 percent, and traffic delays plummeted by 25 percent.(12/01/2010)

Conversion of an HOV lane to a HOT lane in Washington State allowed for a 3 to 19 percent increase in speeds in general purpose lanes despite a 2 to 3 percent increase in volumes in the general lanes.(November 19, 2010)

Benefit-to-cost estimates for dynamic pricing applications on freeway shoulder lanes ranged from 1.1 to 8.2.(September 2010)

In Puget Sound, variable tolling on SR-167 made more efficient use of carpool lanes without delaying buses; average speeds in general purpose lanes increased by 21 percent while average speeds in HOT lanes increased by 6 percent.(Winter 2009/2010)

CO2 emissions can be reduced up to 15 percent using in-vehicle performance monitoring systems for Eco-Driver Coaching.(September 16, 2009)

ITS pricing strategies can reduce traffic congestion and enhance the quality of service of buses.(September 2009)

Integrated Corridor Management (ICM) strategies that promote integration among freeways, arterials, and transit systems can help balance traffic flow and enhance corridor performance; simulation models indicate benefit-to-cost ratios for combined strategies range from 7:1 to 25:1.(2009)

Early HOV to HOT conversion projects implemented in San Diego saved I-15 FasTrak users up to 20 minutes compared to main line travelers.(August 2008)

In 2007, the Transport for London (TfL) stated that between 2003 and 2006, NOX emissions fell by 17 percent, PM10 by 24 percent and CO2 by 3 percent, with some of this improvement being attributed to the effects of better traffic flow, and the rest of the improvements, a result of improved vehicle technology.(August 2008)

In Puget Sound, planners estimated that the conversion of HOV to HOT on a nine mile section of SR-167 would allow 13 percent more vehicles to travel the SR-167 corridor daily, and increase use of HOV/HOT lanes by 38 percent.(August 2008)

In Denver, soon after the conversion of HOV to HOT lanes on I-25/US-36, 10 to 15 percent of all daily person trips occurred in the HOT lanes, at full highway speeds, while those in the general-purpose lanes experienced stop-and-go congestion.(August 2008)

Since introducing Electronic Road Pricing in the late 90's, Singapore has reduced weekday traffic in the "Restricted Zone" by 24 percent, resulting in an increase in the average speed of 10 kilometers per hour.(August 2008)

In Minneapolis, converting HOV to HOT lanes with dynamic pricing increased peak period throughput by 9 to 33 percent.(August 2008)

In Stockholm the permanent charging program (Cordon Charging) produced improvements in the environment by reducing carbon dioxide by 10 to 14 percent, NOX by 7 percent, and particulates by 9 percent.(August 2008)

In London, the Central Congestion Charging program reduced traffic delays by 25 percent, and increased travel speeds by 30 percent in the zone.(August 2008)

In London in 2006, the Central Congestion Charging program reduced traffic entering the central London charging zone during charging hours by 21 percent.(August 2008)

Recent data in Stockholm shows that the permanent charging program, reintroduced in August 2007, has reduced traffic by 18 percent exceeding the project goal of 10 to 15 percent.(August 2008)

In the Seattle metropolitan area, a network wide variable tolling system reduced the aggregate travel demand of a targeted study group; weekly vehicle miles traveled (VMT) decreased 12 percent and travel time decreased 8 percent.(April 2008)

In the Seattle metropolitan area the net benefits of a network wide variable tolling system could exceed $28 billion over a 30-year period resulting in a benefit-to-cost ratio of 6:1.(April 2008)

Congestion charging in London resulted in pollutant emission reductions: 8 percent for oxides of nitrogen, 7 percent for airborne particulate matter, and 16 percent for carbon dioxide.(July 2007)

A study of the congestion charging scheme in central London found benefits exceeding costs by a ratio of 1.5:1 for a £5 charge and 1.7:1 for an £8 charge.(July 2007)

In Minneapolis, Minnesota, survey data collected prior to the deployment of MnPASS Express Lanes (HOT lanes) on I-394 examined travelers' willingness-to-pay to avoid congestion. (22-26 January 2006)

Survey data collected from an organization of approximately 500 businesses in London indicated that 69 percent of respondents felt that congestion charging had no impact on their business, 22 percent reported positive impacts on their business, and 9 percent reported an overall negative impact.(January 2006)

Congestion pricing in London decreases inner city traffic by about 20 percent and generates more than £97 million each year for transit improvements.(January 2006)

In California, public support for variable tolling on SR91 was initially low, but after 18 months of operations; nearly 75 percent of the commuting public expressed approval of virtually all aspects of the Express Lanes program.(June 2005)

On the Pennsylvania Turnpike, EZ-Pass participation and variable tolling were projected to decrease peak period traffic congestion at urban interchanges by 15 to 20 percent and have minimal impacts on non-turnpike diversion routes.(8 March 2004)

Value pricing has been shown to increase revenue, reduce congestion by maximizing lane capacity and reduce travel time of highway transportation.(27 February 2003)

Impacts of Transit Fare Policy Initiatives Under an Automated Fare System(Summer 2000)

Continue to promote carpooling and transit services during an incremental deployment of Express Toll lanes.(03/21/2014)

Continually monitor effect of tolls on traveler behavior to maintain operational livelihood.(January 21, 2011)

Recognize that reducing congestion is at least as important as revenue generation for implementing congestion pricing or managed lanes.(April 2009)

Provide early outreach and education to elected officials, decision makers, key stakeholders, and the public about managed lanes and variable tolls. (April 2009)

Engage local operations, traffic control center and maintenance staff in the planning process for managed lanes and congestion pricing projects.(April 2009)

Incorporate managed lanes and congestion pricing projects into the metropolitan transportation planning process.(April 2009)

Incorporate managed lanes and congestion pricing projects into the metropolitan transportation planning process.(April 2009)

Be prepared to make policy tradeoffs between HOV incentives and revenue goals when developing managed lanes and congestion pricing projects.(April 2009)

Consider the complexity of the public-private partnerships when implementing managed lanes and congestion pricing projects.(April 2009)

Verify data collection and equipment reliability when implementing mileage-based user fee programs that use smartphones.(02/01/2013)

Verify data collection and equipment reliability when implementing mileage-based user fee programs that use smartphones.(02/01/2013)

Recalibrate parking rate adjustment models when changes to parking policies and regulations may affect non-payment behavior.(11/13/2015)

When implementing congestion pricing, considerations must be made for the impact dynamic tolling will have on travel choice and behavior among a specific region and/or corridor’s travelers.(04/17/2014)

Engage political champions to keep controversial High-Occupancy Toll (HOT) lane projects on track.(15 December 2011)

Establish contacts early and assure continued communications between planners and stakeholders to promote public and political acceptance of proposed pricing plans.(February 2011)

Continually monitor effect of tolls on traveler behavior to maintain operational livelihood.(January 21, 2011)

Use business and functional requirements to guide technology selection for a road pricing program and understand that the technology selected initially evolves over time.(12/01/2010)

Enforce congestion toll collection and create integration linkages between pricing system and motor vehicle registries to process violations.(12/01/2010)

For successful implementation of a road pricing program, strive for simplicity in policy goals and strong championing of the program by the executive and legislative leaders.(12/01/2010)

Develop public outreach programs based on the cultural and political context of the project location and provide clear, salient, and timely messages about the purpose and benefits of congestion pricing.(12/01/2010)

Develop a statutory and legal framework for as a foundational step for levying road pricing fees and utilizing revenues.(12/01/2010)

Consider stakeholder outreach and education, transport modes that offer an alternative to driving, performance measurement, and area geography with high importance in the planning phase for road pricing programs.(12/01/2010)

Create performance standards for operational effectiveness of a pricing program, define business rules for back-office operations, and refine operations practices based on needs.(12/01/2010)

Be prepared to face the opportunities and challenges posed by political timetables, project deadlines, as well as pricing-equity issues for road pricing procurement and implementation.(12/01/2010)

Understand that while the viability of pricing programs is impacted by political actions, pricing signal is a potential tool for developing a sustainable transportation system.(12/01/2010)

Define clear goals and pay attention to key institutional and technical factors for successful implementation of road pricing programs.(12/01/2010)

Consider advantages of open-source designs and beware of legal challenges in road pricing systems procurement.(12/01/2010)

Beware that schedule and costs of road pricing projects are affected by various factors including legislative outcomes, clarity and specificity of scope, and contracting methods.(12/01/2010)

Grow regional road pricing policies from individual projects and develop modeling tools that reflect a wide range of impacts.(09/13/2010)

Assure public acceptance prior to implementation of electronic congestion pricing solutions.(September 2009)

Package road value-pricing strategies with technology upgrades and conduct extensive outreach that involves champions, stakeholders, and the general public.(August 2008)

Address toll enforcement issues during the initial phase of planning process; with particular attention paid to the legal structure and potential enforcement technologies. (September, 2006)

Evaluate pros and cons of different methods for electronic toll collection.(September, 2006)

Optimize back office tolling operations.(September, 2006)

Consider various toll methods to push traffic demand away from peak hours.(September, 2006)

Consider tolling as a tool for managing travel demand and increasing efficiency, as well as for generating revenue.(2006)

Consider public/private partnerships and unique financing methods as ways to cover costs for managed lanes projects.(2005)

Consider the appropriateness of different lane management strategies.(November, 2004)

Utilize public education and outreach in managed lane projects.(November, 2004)

Consider operational issues of electronic toll collection and enforcement with value pricing projects.(November, 2004)

Engage in comprehensive planning and coordination of managed lanes projects.(November, 2004)

Engage in active management of managed lanes projects.(November, 2004)

Ensure effective public and stakeholder outreach in order to garner support for HOT lanes. (March 2003)

Utilize standard highway project management procedures and tools to successfully implement HOT lane projects.(March 2003)

Set toll prices and vehicle occupancy requirements to maintain favorable travel conditions on HOT lanes. (March 2003)

Ensure that privatization agreements for the management of toll lanes retain the right for the public agency to improve upon or build transportation facilities that may potentially compete with the privatized toll lanes.(December 2000)

Strengthen public acceptance of congestion-based pricing of express lanes by preserving the option to use free lanes, maintaining good levels of service, and prioritizing safety.(December 2000)