Some Like it HOT

I appreciate the point David Alpert is making here regarding the dropping of the construction of additional lanes, including HOT lanes, on I-95/I-395, but I really would love for the criticism of the project to distinguish between the build more lanes part and the introduce HOT lanes part. Congestion is a problem. It’s costly and wasteful and bad for the environment. And if we ever hope to really address the problem of congestion, that’s going to have to involve properly pricing roadways. Washington could build the equivalent of four more Metro systems, and if the roads were free there would still be congestion. If gas prices rise to $10 per gallon, congestion will fall — but only until electric vehicles become widespread.

And pricing roads is as important in an urban setting as it is on a highway. We want people to pay for their role in crowding roadways, and that means tolling of some kind. If we wind up demonizing HOT lanes, then we’re shooting ourselves in the foot — not least because congestion toll revenue could provide a nice source of funding for new transit capacity.

So by all means, explain the concept of induced demand to people. Just don’t knock tolling.

Comments

  1. Ben Ross says:

    On this blog I’ll preface a non-wonkish comment with something extremely wonkish. In discussing road pricing, it’s extremely important to remember that you are dealing with a system that is very, very, very far away from an equilibrium where marginal cost equals marginal revenue. Therefore, the principal of “second best” applies in spades – just because a change is in the direction of the ideal optimum, doesn’t mean that it makes things better. You need to look at the specifics of any proposal – road pricing can be a good idea in some places and a bad idea in others.

    To be a little more concrete, in places where there is no alternative to driving, road pricing is a regressive tax. Sometimes a regressive tax is the best practical solution to a problem, but they are rarely to be advanced as ideal solutions.

    Another type of tolling that is regressive and questionable is schemes like the I-95 express toll lanes now under construction north of Baltimore. Since they run parallel to free lanes, they will largely serve the wealthier segment of drivers. Yet they are financed by those who can’t afford to use them, by using toll revenue from facilities that have little free competition (such as the Harbor Tunnel and Bay Bridge) and therefore are much more profitable.

    A better application of tolling is bridges and tunnels that pay for themselves and provide new connections (such as the aforementioned Harbor Tunnel and Bay Bridge). Another worthy application is congestion charges in areas that have good transit (downtown London) or tolls to pay for transit in the same corridor (raising tolls on the Dulles Access Road to pay for the new Metro line).

    Road tolls is a subject that is very much better discussed in the concrete and not in the abstract. Start by asking some questions that an economist should not be ashamed to ask: Will the revenue exceed the expenditure? Who will pay? Who will benefit?

  2. monkeyrotica says:

    The issue here is not HOT vs NOT, but smart toll roads vs dumb ones. As far as I can read the numbers, NoVA’s application of HOT lanes on I95 requires that 25 cents of every dollar generated go to Fluor-Transurban who’s running the toll system. Seems like an awful lot to me. And these guys build toll roads. That’s what they do, so of course they’re going to want as many as possible. In the case of Arlington, their plan was railroaded during the dying days of the Bush administration, so a lot of the normal impact statements were either rushed or waived. In both cases, I don’t think HOT lanes will really address either congestion (they’re just moving bottlenecks around and generating revenue for a private company), and by adding capacity they’re inducing more demand for outer burb real estate (Prince William and Frederick).

    A smarter application of HOT would be to toll the SE Freeway. This would push congestion to the new lanes on the Wilson Bridge, and generate revenue for DC. Ultimately, if they were to increase a SE Freeway toll to the point where people just didn’t use it AT ALL, you would finally justify your precious SE Freeway demolition, and you could replace it with revenue-generating real estate.

    Sorry, but I just had to come to the defense of my aberrant coterie of sycophants.

  3. ” A better application of tolling is bridges and tunnels that pay for themselves and provide new connections ”

    During the late 1990s I proposed a variable rate toll on a new DC I-95 Grand Arc Mall Tunnel at Fort Totten, charging SOV $5 minus $1 for each additional person.

    Tolls would be a fair means of funding the missing links in the DC area highway system, and tunnel box the way to do these highways to contain noise and emissions.

  4. BeyondDC says:

    Arlington has made this distinction. For example, they have repeatedly asked the state to study congestion pricing on I-66.

  5. But have they considered tunnel-box for portions of a widened I-66 to contain noise, pollution and give back space?

    A an example of tunnel box highway construction can be found beneath segments of the Riverside Boulevard extension in Manhattan.

    http://cos-mobile.blogspot.com/2008/05/nyc-west-side-highway-in-box.html