We Can’t Get There From Here
November 3, 2015
We did a post series in 2011 on congestion pricing applied to Vancouver:
- Some toll economics background
- Traffic data to Vancouver’s downtown and traffic on Metro Vancouver’s bridge and tunnel
- Congestion charge, the case for Vancouver
Frankly, I have failed to see a more comprehensive study since our 2011 series, putting hard number, and making “hard choice”. I am afraid the Ecofiscal report misses the mark too, however it is getting lot of media air, what can’t be a bad thing for advancing the congestion pricing case. We are going in a detailed analysis below:
The report recommends a cordon pricing (in the form of a tolling of all water crossing in the region), something we have also recommended:
Considering the Vancouver topography and the choke points responsible for most of the lower mainland congestion, the equivalent of a “cordon pricing” on the bridges seems the natural way to go.
Such scheme seems to raise many opposition we had already noticed in 2011. The mood is to not oppose frontally to the road pricing idea, but it is to rationalize the inaction toward it:
Anything other that the “ideal” road pricing is not “fair” to the motorists
Those critics could be right, assuming the generalized economic gain largely offset the implementation and operating cost of the proposed model. Considering the overwhelming complexity of implementation of such a model, and the limited amount of congestion in the lower mainland, which limit the potential revenues, it is probably wrong headed:
The model could be fair to the individual motorists, but could be unfair to the general interest: It could cost more to operate than the general economic gain it allows.
Of course, a cordon pricing is a cost/benefit trade off which is not perfect- driving from Langley to Ladner could be exempt of toll, when short haul using the Pattullo bridge could be… but the “choke point” are on the bridge not on the Highway 10… Of course the very idea of road pricing involve that poor people could also pay…but all the argument raised against also apply to:
- Pay parking or gas tax
- Transit fare, especially the zone system with its arbitrary boundary making the trip across the Fraser twice more expensive that the long trip from Langley to Ladner…
…and like the transit fare structure, the type of congestion pricing structure has not to be seen as permanent, but is a trade-off which can be reviewed in function of the technology progress.
The inescapable reality is that the road space is a scare resource, and so far the best known way to manage a scare resource is to put a price on it to align the demand with the offer. This can have some social and fairness implication: let’s address them, instead to use them as an excuse to do nothing.
The Ecofiscal report seems essentially geared for media consumption. Beside giving some air to the idea, what is already a lot, the report doesn’t seem as well researched as one could have expected, and it doesn’t bring any new element to the discussion. Data from  are mainly used afterward to make our points.
What is congestion?
Some, in their hostility to road pricing, don’t hesitate to argue, that road congestion is a good thing: doesn’t are vibrant and economically prosperous cities, crowded places? assuming that crowding is another word for congestion
It is not. here we take the pedestrian paradigm to illustrate the difference, since usually crowded pedestrian places are considered as a positive quality
In the above examples: one could consider that the Istanbul picture is a desirable outcome for a place, the case is more difficult to be made with the New York picture. Transposing the above paradigm to the road traffic:
- Busy roads are a desirable outcome, since it is a sign that the urban land space use is maximized
- roads congested to a level where the traffic become not smooth and predictable is undesirable
Finding the desirable sweet spot is an exercise in itself, but generally speaking, people will agree that the congestion at the approach of the tunnel or the Pattullo bridge has well past its point of desirability. However we could have wished from the report a relatively clear definition of the researched “desirable” level of traffic.
Toll and Congestion Pricing
To clarify the conversation, it is critical to characterize what discriminate congestion pricing of other road tolling types. the report is at best fuzzy, and seems to mention the Port Mann and Golden Ears bridges toll as examples of congestion pricing. They are not, they are here to finance an infrastructure. A typical Congestion toll varies according to the level of congestion -and eventually become free on low level of traffic (night and week-end). below are the 3 main types of road pricing.
|tolling type||Main objective||toll structure classification typology||financing||finance an infrastrcuture||vehicle size | weight classification|
|environemental||reduce pollution||vehile emission classification|
|congestion||reduce congestion||time of day/day of week|
It is also good to feature the different congestion pricing coverage types:
|tolling type||tolling method||example||infrastructure||vehicle using the infrastructure||Sydney harbour bridge/tunnel, HOT|
|cordon||vehicle crossing the cordon||Stockolm, Milan|
|zone||vehicle moving inside a zone||London|
Some other more comprehensive or “ideal” coverage, mainly relying on GPS, to price the exact trip could be under study, however, so far we are unaware of a deployed one: let’s keep down on earth and rely on proven collection methods
Congestion pricing scheme around the globe
it is good to come with a general overview of what is existing today, to identify some possible trend, category, all this to identify more successful model, but also to get a better understanding of some failures (the failed experiment of Hong Kong, modeled after the successful one of Singapore should deserve a explanation):
the graph above purposely excludes most of the american city using HOT, or the Toronto ETR407 (at considering its purpose is to relieve congestion, what is open to discussion), under the rational they are usually located in a suburban context
Congestion toll Effectiveness
Cordon or zone tolling tend to significantly reduce the congestion by 15 to 85% , the case is more moot for infrastructure tolling.
In short: The Toronto ETR407 could have lot of merit and purpose, but general experience shown such type of infrastructure doesn’t reduce existing congestion
A recurrent and unfounded critic is that congestion toll revenue doesn’t cover the toll collection operation. In that instance the Eco-fiscal report would have misreported some numbers on the Copenhagen congestion pricing operation (see  for more detail on it). However the trend is toward lower operating cost.
In the context of Vancouver, Stockholm is an interesting case study since it seems to share many characteristics with Vancouver, and its congestion pricing model can be transposed to Vancouver. However, it could have been interesting to study the difference, such as in term of transit ridership, urban form, and tolling area.
For reference Vancouver alone is already 115km2: a cordon pricing using the Fraser crossing could make the Vancouver area the greater area subject to congestion pricing.
The implication of this could deserve further investigation. Notice that, in theory the bridges surrounding the downtown peninsula doesn’t support enough traffic to justify a congestion toll .
Beyond the technicalities of road pricing, the acceptability need to be studied: Stockholm having passed the test of the referendum after experimentation is a good starting point:  gives some pointer toward acceptability.
- Benefits may turn out to be larger than anticipated. Several authors have noted that a major reason for the resistance to congestion charges is that they assume they will not work.
- The downsides of charges – increased travel costs and/or changes in travel behaviour – may prove to be not as bad as expected. Once the charges are in place, many people may discover that the charges do not in fact affect them as much as they had thought
- Once the charges are decided, resistance may decrease due to the psychological effect known as cognitive dissonance. A phenomenon that can be simply summarized as “accept the unavoidable”. In other words, once the charges are in place, it is less worthwhile spending energy on opposing them.
- Familiarity with road user charging may reduce the general reluctance towards pricing a previously unpriced good. There is evidence that “people in many cases do not like prices as an allocation mechanism”, but once familiar with the concept that road space is in principle a scarce good that can be priced – much like parking space – this reluctance may tend to decrease.
One will notice that the above paradigm would apply to bike lane too!
 mentions also the “environmental card”. It should also be noticed that the transit offer has been increased in the experimental phase, however most of the added transit is “self financed” by increased transit revenue from higher ridership according to .
Milan and its referendum
The “environmental card” should bring us to Milan, Italy, where road pricing has originally been introduced in the objective to reduce the pollution. However in 2011, Milan got a referendum. the question was
|Would you like to extend the toll zone to the whole city and to all vehicles categories to fund transit and other sustainable alternative to the car?|
The answer has been a resounding yes: 80%!
Needless to say, Vancouver has one thing or 2 to learn from Milan, …and we could have expected some element of response from the Ecofiscal report.
The Ecofiscal report is short on the technicality and specific of the proposed congestion pricing sheme. It could have been good to past the generality and get some hard and substantiated numbers to help the conversation.
While the Ecofiscal report apropos suggests experimentation, it doesn’t substantiate the rational for it (more especially its importance for public acceptability). More generally, the report falls short on recommendations enabling the acceptability of road pricing by the public. It doesn’t bring a new narrative making the whole congestion pricing concept more “sellable” to the “commons”. However, its main merit has been its ability to gather tremendous media coverage triggering conversation on road pricing: so it is probably good enough
 “Etat de l’art sur le péages urbains” (in french), Ademe, June 20142014
 Flikr user “Howard Brier”
 Road Congestion Pricing In Europe: Implications for the United States H. W. Richardson and C. H. C. Bae , Edward Elgar Publishing, 2008.
 see the Cost-benefit analysis of the Stockholm congestion charging system, Jonas Eliasson, Transek AB, 2009. for more detail. This is inline with the used reference  in our 2011 post on the toll economics.
 see our previous post
 The Stockholm congestion charges – four years on. Effects, acceptability and lessons learnt, Maria Börjesson and al.