TDM & Road Pricing

Road pricing is commonly associated with transportation demand management (TDM). Due to its ability to manage and shape future travel demand on the road network, TDM has emerged as one of the most cost effective ways to deal with traffic issues. With the help of solid social marketing, the most successful use of TDM occurs when positive incentives (e.g. modal choice information, car pooling programs, teleworking) are combined with user charges that provide a clear price signal to motorists (e.g. road pricing, distance-based insurance and parking pricing).

A comprehensive package of TDM measures can encourage households and businesses to make informed transportation choices leading them to choose sustainable modes (transit, cycling, walking) and more accessible live/work locations. In turn, these choices help to reduce auto congestion, pollution and the need for expensive road expansion. Other potential TDM co-benefits include reduced car expenses, increased safety, fewer crashes, better physical health and increased social cohesion.

Long advocated by economists and TDM practitioners, road pricing can help manage congestion, motivate sustainable modal choices and generate new revenues. Examples of road pricing include tolls and congestion charging – all of which can vary by time of day, by road, by area and by vehicle type. However, since it is uncommon in Canada, pricing raises critical policy and technical questions ranging from social equity and privacy concerns to governance and financing issues. Further information can be found by visiting the Victoria Transport Policy Institute and attending Transport Futures learning events.