DEPLOYING ELECTRONIC TOLL SYSTEMS

In this paper, the authors examine the issue of when the conversion should take place at a toll plaza lanes from manual toll collection to electronic toll collection (ETC), and what would constitute a socially optimal discount for using ETC. A model is presented which compares the gross benefits and costs of price discount and lane configuration alternatives over a twenty year period. The authors conclude that the single most important factor in the model that dictates the failure or success of ETC is commuters' reluctance to join the automated toll collection network. Reasons for the reluctance may include transponder costs, inconvenience of opening an account, simple inertia, or other factors.