Tuesday, February 9, 2010

DOT fact finding on congestion pricing

Grush Hour reports on a fact finding tour (taxpayer funded junket) by leading DOT officials. Among the issues was this:
Something new that I learned from the Webinar: “Singapore estimates that the gas tax would need to be raised by $3 to achieve the same traffic reduction results as a $1 increase in their electronic road pricing system due to transparency of the charge.”
The transparency means more precision. Drivers can pick among more than one congestion option, each additional option inflates the production system generating more matches to the travel requirements of the drivers. The transaction costs of delivering more basic congestion options from a larger single option is minimal, subdivision is lanes over periods is simply software.

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