The Short-Run Impact of Gas Prices on Toll Road Use

Project Description

Recently, the price of gas has fluctuated dramatically-and therefore the cost of travel has fluctuated as well. One thing that has not been examined is potential route shifts to or from toll roads. This research examined traffic trends on several toll facilities from 2000 to 2010. These data were used to estimate the impact of rising gas prices on travelers' choice of toll or non-toll route-furthering researchers' understanding of travel behavior in response to pricing. In addition to investigating the impact of gas price changes on the use of toll facilities, other factors (toll rates, monthly unemployment rate, and population in the metropolitan area where the toll road is located) that may have influenced the total use of the toll facility were also considered.

The research findings indicated that travel demand elasticity estimates with respect to gas price were inelastic and mostly negative. Elasticities found here for the period from 2000 to 2010 ranged from -0.36 to +0.14, similar to those found in the literature for non-toll facilities. However, the average value of the elasticities found here were much smaller (closer to -0.06) than those found for non-toll facilities. This indicates that either (a) toll facility users are less impacted by changes in gas prices, or (b) although overall traffic volumes decrease some travelers switch to toll facilities as gas prices rise. Researchers conclude that toll facilities were more insulated from downturns in traffic volumes resulting from increases in gas prices than were toll-free facilities.

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