Austin's New Toll Lanes

Traffic in Austin is a mess, mainly because the city is long and linear (east-west travel is made difficult by the topography). In increasingly long rush hours, traffic barely moves on either north-south freeway. To solve the problem, the city is adding one lane in each direction to one freeway, but there will be tolls on that lane. Moreover, the tolls will be variable — but not by time of day or day of week. They will vary with traffic speed, rising when the average speed in the lane drops below 50 mph. Pretty neat — peak-load pricing taken to its logical extreme. The technology that makes this possible is fairly recent. And it’s a good example of how technical improvements raise well-being — in this case, allowing those whose value of time is high to substitute money for their time and reducing congestion on the “free” lanes for the rest of us.

Road Blocks: The Strange Things That Cause Traffic

The cause of a lot of the traffic congestion we battle everyday is pretty simple: too many people want to travel at the same time in the same direction to the same place, usually a job center. Since telework has been slow to replace the traditional workplace, it looks like this problem will be with us for a while.

For decades we have known about a way to deal with chronic congestion: levy tolls which vary depending on how crowded the road is. I’ve written about this here and here.

But pricing is not as well-suited for dealing with congestion related to unusual incidents, like breakdowns and wrecks. Even when these are relatively minor, incidents can start shock waves that cause serious amounts of delay as they ripple back through the traffic flow.