Implementing Congestion Tolls on Currently Free Highways With Public–Private Partnerships: What Are the Financial and Economic Benefits?

Abstract

A trillion dollars in Interstate highway improvement and modernization work has been deferred due to lack of funding. More than half of Interstate and other freeway and expressway lane miles are classified as urban. Therefore, one approach that could be considered to generate needed revenue for freeway improvements in urban areas is implementing congestion-based tolls on freeways during peak periods when they are congested. Such an approach has been implemented in the Washington, DC metro area, on the I-66 freeway inside the Capital Beltway in Northern Virginia. This article demonstrates how an analyst may estimate the financial and economic benefits of a concept involving imposition of congestion-based tolls on the entire urban freeway network, during peak periods only, in conjunction with transit service improvements using automated transit vehicles. Furthermore, the article evaluates potential benefits from using a public–private partnership for implementation of the concept.