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Congestion Pricing

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).