As a general rule, road pricing isn’t popular. But that’s not because it doesn’t work. The problem is that it works too well, and people don’t like the idea of driving less and paying for roads (that currently have a zero marginal cost).
Here’s a recent study by Robert Bain and Deny Sullivan that looked at just how well it can work. In it, they examine 76 data points from 16 countries, including roads, bridges, tunnels, and cordons (areas).
The question: What happens to demand once the marginal cost of using a road goes from $0 to some cost greater than zero? (As part of this, they also looked at whether the road or bridge in question has viable alternatives.)
The results:

The median traffic reduction was 25%. But the interquartile range was -17% to -44%. This is all very significant. Said differently, the traffic impact in nearly a quarter of the examples was -45% or more. So almost a halving of traffic congestion.
These reductions are obviously a function of the cost of using each road, but regardless, the overarching takeaway remains the same: You may not like or want road pricing, but it totally works.
Vishaan Chakrabarti is an architect based in New York City. He is the founder of Practice for Architecture and Urbanism (PAU) and the author of two books.
His first book, published in 2013, was A Country of Cities: A Manifesto for an Urban America. And as the title suggests, it was about the virtues of dense urban agglomerations. You know, the kind of cities that I like and have good bike lanes.
His second book, which just came out, is called The Architecture of Urbanity: Designing for Nature, Culture, and Joy. In this one, he talks about the role of architecture and urbanism in fighting both climate change and social division.
Below is an excerpt from a recent interview in Bloomberg where he discusses the book's theme of "social friction." This snippet is also a timely follow-up to yesterday's post about autonomous vehicles:
Cars are problematic when it comes to connective design. It doesn’t matter if they’re electric because the problem with a car is it’s a divider. It’s a metal bubble and it keeps you from interacting with your neighbors. So the virtues of mass transit, public parks and well-designed buildings in cities are not just that they are good for the climate. They are also good for this sense of social coherence. If we’re going to live up to our promise as a country — a multicultural democracy — we need to have spaces that both reflect and perpetuate that.
I haven't read the book yet, but it sounds like it's in the wheelhouse of this blog. If you'd like to, here's a link.
One of the reasons why I'm interested in the autonomous vehicle space is that I know our built environment is sticky. And because we've designed so much of it around the car, it's hard to imagine this dependance going away anytime soon.
In fact, there's a very real possibility that autonomy leads to further decentralization. That is typically what happens when we make it easier and cheaper for people to travel longer distances. They sprawl. So we ought to start preparing ourselves for the positive and negative externalities.
I'm not a deep expert on autonomous vehicles, but as an interested observer, Waymo appears ahead of Tesla in delivering this future. Waymo has been offering fully driverless rides since 2020 and Tesla is still at L2 autonomy, which means a driver needs to be present in the vehicle.
I hear from lots of people that their Full Self Driving (FSD) software is pretty good, but according to some studies, it can require human intervention as often as every 13 miles. This doesn't necessarily mean that Tesla won't be first to "solve autonomy," but their Cybercab isn't here yet.
If you're interested in this topic, here is an article by Timothy Lee summarizing a discussion that he recently had with the co-CEO of Waymo, Dmitri Dolgov. Some of it is a little technical, but it does offer a comparison between Tesla and Waymo.
That is, how their approaches differ and what the future might look like.
As a general rule, road pricing isn’t popular. But that’s not because it doesn’t work. The problem is that it works too well, and people don’t like the idea of driving less and paying for roads (that currently have a zero marginal cost).
Here’s a recent study by Robert Bain and Deny Sullivan that looked at just how well it can work. In it, they examine 76 data points from 16 countries, including roads, bridges, tunnels, and cordons (areas).
The question: What happens to demand once the marginal cost of using a road goes from $0 to some cost greater than zero? (As part of this, they also looked at whether the road or bridge in question has viable alternatives.)
The results:

The median traffic reduction was 25%. But the interquartile range was -17% to -44%. This is all very significant. Said differently, the traffic impact in nearly a quarter of the examples was -45% or more. So almost a halving of traffic congestion.
These reductions are obviously a function of the cost of using each road, but regardless, the overarching takeaway remains the same: You may not like or want road pricing, but it totally works.
Vishaan Chakrabarti is an architect based in New York City. He is the founder of Practice for Architecture and Urbanism (PAU) and the author of two books.
His first book, published in 2013, was A Country of Cities: A Manifesto for an Urban America. And as the title suggests, it was about the virtues of dense urban agglomerations. You know, the kind of cities that I like and have good bike lanes.
His second book, which just came out, is called The Architecture of Urbanity: Designing for Nature, Culture, and Joy. In this one, he talks about the role of architecture and urbanism in fighting both climate change and social division.
Below is an excerpt from a recent interview in Bloomberg where he discusses the book's theme of "social friction." This snippet is also a timely follow-up to yesterday's post about autonomous vehicles:
Cars are problematic when it comes to connective design. It doesn’t matter if they’re electric because the problem with a car is it’s a divider. It’s a metal bubble and it keeps you from interacting with your neighbors. So the virtues of mass transit, public parks and well-designed buildings in cities are not just that they are good for the climate. They are also good for this sense of social coherence. If we’re going to live up to our promise as a country — a multicultural democracy — we need to have spaces that both reflect and perpetuate that.
I haven't read the book yet, but it sounds like it's in the wheelhouse of this blog. If you'd like to, here's a link.
One of the reasons why I'm interested in the autonomous vehicle space is that I know our built environment is sticky. And because we've designed so much of it around the car, it's hard to imagine this dependance going away anytime soon.
In fact, there's a very real possibility that autonomy leads to further decentralization. That is typically what happens when we make it easier and cheaper for people to travel longer distances. They sprawl. So we ought to start preparing ourselves for the positive and negative externalities.
I'm not a deep expert on autonomous vehicles, but as an interested observer, Waymo appears ahead of Tesla in delivering this future. Waymo has been offering fully driverless rides since 2020 and Tesla is still at L2 autonomy, which means a driver needs to be present in the vehicle.
I hear from lots of people that their Full Self Driving (FSD) software is pretty good, but according to some studies, it can require human intervention as often as every 13 miles. This doesn't necessarily mean that Tesla won't be first to "solve autonomy," but their Cybercab isn't here yet.
If you're interested in this topic, here is an article by Timothy Lee summarizing a discussion that he recently had with the co-CEO of Waymo, Dmitri Dolgov. Some of it is a little technical, but it does offer a comparison between Tesla and Waymo.
That is, how their approaches differ and what the future might look like.
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