is a financial instrument used to manage road demand and reduce congestion by charging road users for their direct use of the road in peak times.
The policy of charging drivers a fee that varies with the level of traffic on a congested roadway. Congestion pricing is designed to allocate roadway space, a scarce resource, in a more economically efficient manner. Synonym: congestion-relief tolling. The difference with value pricing seems to be that congestion pricing could be applied more comprehensively to all trips within a corridor or sub-area, while value pricing typically implies a choice between a congested and less congested trip.
A toll pricing method used to encourage motorists with travel-time flexibility to travel during the non-peak commutation hours when traffic volumes are lower. Those traveling in the peak periods, when traffic volumes are greater, pay a higher toll than those traveling in the non-peak periods.
The concept of charging for the use of a transportation facility, such as a roadway, based on the level of traffic congestion. The greater the level of congestion, which usually occurs during the morning and afternoon peak-periods, the higher the cost to use the facility.
Congestion Pricing (also called Value Pricing) refers to variable road pricing (higher prices under congested conditions and lower prices at less congested times and locations) intended to reduce peak-period vehicle trips. Tolls can vary based on a fixed schedule, or they can be dynamic, meaning that rates change depending on the level of congestion that exists at a particular time. It can be implemented when road tolls are implemented to raise revenue, or on existing roadways as a demand management strategy to avoid the need to add capacity. Some highways have a combination of un-priced lanes and Value Priced lanes, allowing motorists to choose between driving in congestion and paying a toll for an un-congested trip. This is a type of Responsive Pricing, meaning that it is intended to change consumption patterns (Vickrey, 1994).
A method of pricing in which all energy bought and sold in the system operator-administered spot market settles at marketbased prices that account for the effects of congestion. Settlement prices are determined from the marginal cost (price) of serving an increment of load at each location.
