Strategies > Transportation Demand Management > Road User Pricing

Road User Pricing

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Photo: Flickr/ vcucns
Road user pricing refers to strategies that affect the cost of driving, including:
  • Point tolling charges (e.g., toll road) 
  • Variable tolls, which are are time-based charges
  • Cordon pricing, which is a charge for crossing into a geographic boundary, often a downtown
  • Distance charging, which is where users pay for the distance they have driven on the roadway

Likely Outcomes

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Reduced VMT
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Reduced GHG
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Reduced Air Pollution
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Reduced Congestion
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Revenue Alternative
Road user pricing may be effective in reducing vehicle miles traveled (VMT) and greenhouse gas emissions (GHG). However, most studies on road user pricing do not study direct effects on VMT but on traffic volumes (Boarnet et al., 2014; Salon et al., 2012, paywall). While road user pricing reduces traffic volumes, it is not a clear relationship to VMT because there may be traffic diversions. Of all types of road user pricing, distance charging has the greatest potential for reducing VMT (Boarnet et al., 2014). ​Studies that have examined the impact of congestion pricing on GHG have found GHG reductions. ​Other potential co-benefits of road user pricing include reduced air pollution, congestion management, management of induced demand, and the creating a revenue source for transportation improvements (Boarnet et al., 2014). 

Equity and Inclusion

Road user pricing can have adverse impacts on equity if they are not managed. Strategies may address the basis of charging, the area covered by the charge, the time period covered, whether there are discounts or exemptions, and addressing other transportation charges, such as transit fares (Levinson, 2010, paywall). Some technologies used for congestion pricing require credit cards, which presents a barrier to unbanked individuals or those without credit cards. However, Manville & Goldman (2017, paywall) argue that the lack of congestion pricing on high-demand roadways is not an equitable strategy either; that is, congested free roads do not help low-income residents.

Complementary Strategies

Implementation Guidance

Guides & Reports
Research Reports & Briefs
Social Equity Impacts of Congestion Management Strategies

Transportation Sustainability Research Center & UC Berkeley Institute of Transportation Studies, 2015
Road Usage Charge Assessment Final Report
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Washington State Transportation Commission, 2020
An Equitable and Integrated Approach to Paying for Roads in a Time of Rapid Change

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UC Berkeley Institute of Transportation Studies, 2019
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