17.2 Cordon Pricing

Mitigate congestion through fees for operating vehicles in high activity areas.

Description

Cordon pricing charges vehicles that enter high-activity areas such as central business districts. Areas of high congestion are identified and encircled with one or more cordons (lines). Vehicles may enter the area on different types of roads (e.g., arterials or highways). Fees are then collected from drivers through tollbooths at the cordon, special area permits, or parking permits. Prices may vary by time of day so that drivers may be reluctant to enter the cordoned areas during typical peak congestion periods.

Cordon pricing has potential disadvantages:

• Although it may relieve inner-city congestion, cordon pricing policy may not reduce traffic on the region’s freeway system leading into the city.

• Once vehicles pay the fee for entering the area, there is no price difference for people who drive for a longer period of time than others.

• Cordon pricing may also result in the unintended consequence of congestion moving into streets adjacent to the cordoned area. Similar to single facility pricing, congestion may simply shift from the priced roadways to other nontoll alternative routes.

• An inequitable situation for businesses within the affected district may result if people choose to avoid fees and do business elsewhere. Commercial delivery businesses and companies in the transportation industry that need access to affected areas may also be negatively affected if not exempted.

Application

Major business districts or other concentrated congested areas.

$$\text{Daily Emission Reduction (grams/day)} = A + B + C + D$$

$$A = (\mathit{VT}_{R} \times \mathit{TEF}_{\mathit{AUTO}}) + (\mathit{VMT}_{R} \times \mathit{EF}_{B})$$

Reduction in auto start emissions from trip reductions plus the reduction in auto running exhaust emissions from trip reductions

$$B = \mathit{VT}_{S} \times \mathit{TL}_{B} \times (\mathit{EF}_{B} - \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions from trips shifted to a no cost or lower cost time period

$$C = \mathit{VT}_{\mathit{ALT}} \times (\mathit{TL}_{B} \times \mathit{EF}_{B} - \mathit{TL}_{A} \times \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions from trips shifted to an alternate destination during the same time period

$$D = \mathit{VT}_{\mathit{NC}} \times \mathit{TL}_{B} \times (\mathit{EF}_{B} - \mathit{EF}_{A})$$

Reduction in auto running exhaust emissions from trips remaining on the same routes after implementation

$$\mathit{VMT}_{R} = \mathit{VT}_{R} \times \mathit{TL}_{B}$$

$$\mathit{VT}_{R} = \epsilon \times (\mathit{FEE}_{B} - \mathit{FEE}_{A}) \times \mathit{VT}_{B}$$

$$\mathit{VT}_{S} = \epsilon \times (\mathit{FEE}_{B} - \mathit{FEE}_{A}) \times \mathit{VT}_{B}$$

The price elasticity for use of the facility multiplied by the difference in the fee for use of the facility before and after strategy implementation multiplied by the number of vehicle trips before implementation

$$\mathit{VT}_{B} = \mathit{VT}_{R} + \mathit{VT}_{S} + \mathit{VT}_{\mathit{ALT}} + \mathit{VT}_{\mathit{NC}}$$

Vehicle trips on facility before implementation of measure mathematically equals to remaining vehicle trips on the facility after implementation plus resulting trip changes (VT_S + VT_ALT + VT_NC)

Variables	(Unit)	Definitions
$\mathit{EF}_{A}$	(grams/mile)	Speed-based running exhaust emission factor after implementation on affected roadway
$\mathit{EF}_{B}$	(grams/mile)	Speed-based running exhaust emission factor on affected roadway before implementation (NOX, VOC, PM, or CO)
$\mathit{FEE}_{A}$	(percent)	Price for facility use after implementation of measure
$\mathit{FEE}_{B}$	(percent)	Price for facility use before implementation of measure
$\mathit{TEF}_{\mathit{AUTO}}$	(grams/trip)	Auto trip-end emission factor (NOX, VOC, PM, or CO)
$\mathit{TL}_{A}$	(mile)	Average auto trip length after implementation of measure
$\mathit{TL}_{B}$	(mile)	Average auto trip length before implementation of measure
$\mathit{VMT}_{R}$		Reduction in daily automobile VMT
$\mathit{VT}_{\mathit{ALT}}$	(trip)	Vehicle trips on alternate facility
$\mathit{VT}_{B}$	(trip)	Vehicle trips on facility before implementation of measure
$\mathit{VT}_{\mathit{NC}}$	(trip)	Vehicle trips remaining on facility after implementation
$\mathit{VT}_{R}$	(trip)	Reduction in number of daily automobile vehicle trips
$\mathit{VT}_{S}$	(trip)	Vehicle trips on facility shifted to no cost or lower cost time period
$\epsilon$		Price elasticity for mode and time shift

Source: Texas A&M Transportation Institute