Time of day pricing and its multi-dimensional impacts: A stated preference analysis

• Investigates behavioral impacts of time of day pricing using stated preference data.
• Estimates discrete choice models to identify key variables that impact behavioral response.
• Conducts sensitivity analyses to quantify impacts of alternative policies.
• Discusses implications for toll policies.

Time of day pricing uses higher tolls in the peak-hours to induce passenger car traffic to consider a switch to more sustainable alternatives in terms of time of travel, mode, route, and payment method. In designing such programs, special attention must be paid to ensure that the drivers’ behavioral responses to pricing are well understood. This is important because, if the analysts do not correctly predict users’ reactions, policies and programs may fail to achieve their objectives. Knowledge of users’ responses to pricing assists policy makers to design effective pricing programs.This paper investigates the behavioral impacts of time of day pricing using stated preference data collected from regular users of the New Jersey Turnpike. As part of the data collection process, the respondents were presented with hypothetical toll scenarios and asked how they would change behavior. Using these data, discrete choice models were estimated as a function of policy variables and respondents’ socio-economic attributes. The final model shows that time of day pricing could induce changes in the payment method used to pay the tolls, route choice, and time of travel. It was found that the amount of the toll, total travel time, and schedule delay—together with other socio-economic variables—were important factors in determining which alternative a user would select. Market share analyses for basic toll scenarios were conducted to assess the overall impacts of alternative toll scenarios. Elasticities were computed for the key variables in the model. In its final sections, the paper discusses policy implications and chief conclusions.