(ISTEA), which allows up to $25 million per year through 1997 to help fund up to five congestion pricing pilot projects. One congestion pricing pilot project was approved in 1993.

Congestion pricing is also being reconsidered because of growing awareness of revenue shortfalls for capital investment from traditional transportation taxes and increased acceptance of toll financing (Small et al. 1989). For example, because of a lack of funds and an inability to respond to the demand for new facilities, the state of California is allowing seven new toll roads to be built, two of which are planning to rely on peak-period fees.

Motorists do not like congestion and believe that it is getting worse. A recent nationwide poll found that nearly two-thirds of central-city and metropolitan-area residents believe that congestion is a major problem (Apogee Research, Inc. 1990). Half of the respondents to this survey reported that congestion had become “a lot worse” compared with the situation five years ago. Data available on the use of specific facilities support this view. Although the capacity of major arterial highways increased 25 percent between 1980 and 1991, the volume of travel during that same period increased almost 60 percent. As a result, the percentage of travel on urban Interstates operating in or near congested conditions has increased considerably (Figure 1-1). (Other available trend data on congestion are reviewed in Appendix A.)

Economists have long advocated congestion pricing because it would use the existing transportation system more efficiently (Walters 1961; Vickrey 1959; Mohring 1965; Keeler and Small 1977; Hau 1992). Most metropolitan areas would have sufficient highway capacity if the daily use of the system could be averaged over the hours of the waking day. Highway use, however, like use of utilities, restaurants, seasonal resorts, and airlines, is characterized by considerable differences between peak and off-peak demand. Highways in most areas are typically congested during the morning and evening peak hours and underused the rest of the day. (Many urban

Front Matter (R1-R10)

Executive Summary (1-15)

1 Introduction (16-26)

2 Theory and Experience (27-38)

3 Possible Effects (39-57)

4 Technical and Political Feasibility (58-80)

5 Design, Evaluation, and Research (81-96)

6 Summary (97-103)

Appendix A: Traffic Congestion (104-116)

Appendix B: Theory, Experience, and Estimated Effects (117-139)

Study Committee Biographical Information (140-146)