Examining the Feasibility of Credit-Based Value Pricing in Texas

The use of credit-based value pricing (CBVP) is an innovative method of value pricing and may solve several transportation problems, such as traffic congestion and excessive vehicle emissions. This value pricing idea would involve travelers receiving an allocation of credits every period. Different travel behaviors would then require (cost) different numbers of credits. Travelers frequently choosing high-cost credit trips (for example, driving alone on a congested freeway during rush hour) would find themselves short of credits prior to the next period and needing to purchase additional credits from travelers choosing low-cost credit options (for example, transit trips). The cost of the credits would be set in a free market system (much like a stock market) by the buyers and sellers. This research examines technical, administrative, economic, and political issues surrounding several forms of CBVP.