Revenue Mechanisms Can Improve System Performance and Reduce Investment Demand by Improving Efficient Use

Needs are not set in stone. Some revenue mechanisms, including those that charge more for traveling in peak periods or on heavily congested facilities, not only generate revenue but also positively influence how users decide when and where to use the system. By applying certain revenue mechanisms and optimizing use of existing infrastructure, we can—in some cases—reduce the need for additional infrastructure.

Demand for transportation services should not be separated from the way in which the services are funded. The more direct the charges are for use of specific infrastructure, the more efficient the use of that infrastructure can be, which may in turn reduce the need for expensive capital improvements. For example, charging higher prices to travel on highly congested roads can shift travel to less congested times of day or to other modes, such as transit. Some revenue mechanisms promote better utilization of existing capacity than other mechanisms and may simultaneously generate revenue, reduce the need for additional improvements, and have other societal benefits, such as reduced pollution.