Below is a photo of Interstate 95 near Miami, which, for the record, I myself did not take while driving.

The two empty lanes that you see are the “Express Lanes.” The price for using these lanes varies based on demand.
During periods of low demand, the toll could be around $0.20 per mile.
During periods of high demand, such as during rush hour, it might be $1 per mile.
And during unusually heavy periods, like when there’s an accident, it could be more.
We used these lanes while driving around the Miami area on this trip. The pricing always seemed reasonable and the lanes were never congested.
I think the above picture is a good demonstration of how dynamic road pricing can be used alleviate traffic congestion.
That’s why many cities, such as Portland, are exploring it as a solution. I wish Toronto would do the same.
I was out for dinner this evening and the topic of road tolls (road pricing) came up. All of us at the table agreed that this was a missed opportunity for Toronto. Yes we proposed it, but then we got cold feet and backed away.
Why might this be a good idea?
City Observatory did a good job explaining this with their post about free ice cream day at Ben & Jerry’s. They argued that this sort of promotion actually provides a great crash course in transportation economics. Nobody is paying, but the lines are real long.
Here’s an excerpt:
Substitute “freeway” for “free cone” and you’ve got a pretty good description of how transportation economics works. When it comes to our road system, every rush hour is like free cone day at Ben and Jerry’s. The customers (drivers) are paying zero for their use of the limited capacity of the road system, and we’re rationing this valuable product based on people’s willingness to tolerate delays (with the result that lot’s of people who don’t attach a particularly high value to their time are slowing down things for everyone).
What we are talking about is simple, but apparently it’s not easy to execute on.
Below is a photo of Interstate 95 near Miami, which, for the record, I myself did not take while driving.

The two empty lanes that you see are the “Express Lanes.” The price for using these lanes varies based on demand.
During periods of low demand, the toll could be around $0.20 per mile.
During periods of high demand, such as during rush hour, it might be $1 per mile.
And during unusually heavy periods, like when there’s an accident, it could be more.
We used these lanes while driving around the Miami area on this trip. The pricing always seemed reasonable and the lanes were never congested.
I think the above picture is a good demonstration of how dynamic road pricing can be used alleviate traffic congestion.
That’s why many cities, such as Portland, are exploring it as a solution. I wish Toronto would do the same.
I was out for dinner this evening and the topic of road tolls (road pricing) came up. All of us at the table agreed that this was a missed opportunity for Toronto. Yes we proposed it, but then we got cold feet and backed away.
Why might this be a good idea?
City Observatory did a good job explaining this with their post about free ice cream day at Ben & Jerry’s. They argued that this sort of promotion actually provides a great crash course in transportation economics. Nobody is paying, but the lines are real long.
Here’s an excerpt:
Substitute “freeway” for “free cone” and you’ve got a pretty good description of how transportation economics works. When it comes to our road system, every rush hour is like free cone day at Ben and Jerry’s. The customers (drivers) are paying zero for their use of the limited capacity of the road system, and we’re rationing this valuable product based on people’s willingness to tolerate delays (with the result that lot’s of people who don’t attach a particularly high value to their time are slowing down things for everyone).
What we are talking about is simple, but apparently it’s not easy to execute on.
Many have argued, including urban economist Edward Glaeser, that autonomous vehicles are going to be positively disastrous for cities. Once you remove the labor costs associated with the driver and the overall price per kilometer plummets because of pooling/technological advances, we are going to see an huge surge in demand – well beyond the capacities of our roads.
Of course, there are solutions. We can accurately price the roads, which is something that more cities should be doing today even before autonomous vehicles arrive. Here is an excerpt from Cortright’s article:
“With modern electronics, and especially with autonomous vehicles, position and speed is monitored with great precision. There is no reason why they [drivers] should not pay for exactly the amount of roadway that they use. And we know that the cost of the city’s roadway varies substantially across space and over time. Use of road capacity in less dense neighborhoods at off-peak hours imposes nominal costs on the city’s road budget. In contrast, peak hour use of city streets and arterials, particularly in and near the city center, imposes huge costs on the city and its residents. Those who use the system at peak hours in congested locations should pay the costs associated with creating, maintaining, and where necessary expanding that infrastructure.”
This isn’t a novel concept, which is why when Toronto was looking at a flat road toll I argued here on the blog that it was a step in the right direction but that it was too blunt a tool.
It’s a moot point now because sadly the province ended up pandering and rejecting the plan, but we should have been considering something that could achieve the above objectives. It needed more finesse.
But in all likelihood our cities will have to face that reality sooner rather than later.
Many have argued, including urban economist Edward Glaeser, that autonomous vehicles are going to be positively disastrous for cities. Once you remove the labor costs associated with the driver and the overall price per kilometer plummets because of pooling/technological advances, we are going to see an huge surge in demand – well beyond the capacities of our roads.
Of course, there are solutions. We can accurately price the roads, which is something that more cities should be doing today even before autonomous vehicles arrive. Here is an excerpt from Cortright’s article:
“With modern electronics, and especially with autonomous vehicles, position and speed is monitored with great precision. There is no reason why they [drivers] should not pay for exactly the amount of roadway that they use. And we know that the cost of the city’s roadway varies substantially across space and over time. Use of road capacity in less dense neighborhoods at off-peak hours imposes nominal costs on the city’s road budget. In contrast, peak hour use of city streets and arterials, particularly in and near the city center, imposes huge costs on the city and its residents. Those who use the system at peak hours in congested locations should pay the costs associated with creating, maintaining, and where necessary expanding that infrastructure.”
This isn’t a novel concept, which is why when Toronto was looking at a flat road toll I argued here on the blog that it was a step in the right direction but that it was too blunt a tool.
It’s a moot point now because sadly the province ended up pandering and rejecting the plan, but we should have been considering something that could achieve the above objectives. It needed more finesse.
But in all likelihood our cities will have to face that reality sooner rather than later.
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