HOT Lanes with a Refund Option and Potential Application of Connected Vehicles

Priced Managed Lanes (MLs) have been increasingly advocated as one of the effective ways to mitigating congestion in recent years. This study explores a new and innovative pricing strategy for MLs called Travel Time Refund (TTR). The proposed TTR provides an additional option to paying drivers that insures their travel time by issuing a refund to the toll cost if they do not reach their destination within specified travel times due to accidents or other unforeseen circumstances. Perceived benefits of TTR include raised public acceptance towards priced MLs, utilization increase of HOV/HOT lanes, overall congestion mitigation, and additional funding for relevant transportation agencies. To gauge travelers’ interests of TTR and to analyse its possible impacts, a stated preference (SP) survey was performed. An exploratory and statistical analysis of the survey responses revealed negative interest towards HOT and TTR option in accordance with common wisdom and previous studies. However, it is found that travelers are less negative about TTR than HOT alone; supporting the idea, that TTR could make HOT facilities more appealing. The impact of travel time reliability and latent variables representing psychological constructs on travelers’ choices in response to this new pricing strategy was also analysed. The results indicate that along with travel time and reliability, the decision maker’s attitudes and the level of comprehension of the concept of HOT and TTR play a significant role in their choice making. While the refund option may be theoretically and analytically feasible, the practical implementation issues cannot be ignored. This study also provides a discussion of the potential implementation considerations that include information provision to connected and non-connected vehicles, distinction between toll-only and refund customers, measurement of actual travel time, refund calculation and processing and safety and human factors issues. As the market availability of Connected and Automated Vehicles (CAVs) is prognosticated by 2020, the potential impact of such technologies on effective demand management, especially on MLs is worth investigating. Simulation analysis was performed to evaluate the system performance of a hypothetical road network at varying market penetration of CAVs. The results indicate that Connected Vehicles (CVs) could potentially encourage and enhance the use of MLs.