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Toll bridge

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Through Bridge, Traffic congestion and Boycott

History

The practice of collecting tolls on bridges harks back to the days of ferry crossings where people paid a fee to be ferried across stretches of water. As boats became impractical to carry large loads, ferry operators looked for new sources of revenue. Having built a bridge, they hoped to recoup their investment by charging tolls for people, animals, vehicles, and goods to cross it.

The original London Bridge across the river Thames opened as a toll bridge, but an accumulation of funds by the charitable trust that operated the bridge (Bridge House Estates) saw that the charges were dropped. Using interest on its capital assets, the trust now owns and runs all seven central London bridges at no cost to taxpayers or users.

In the United States, private ownership of toll bridges peaked in the mid-19th century, and by the turn of the 20th century most toll bridges were taken over by state highway departments. In some instances, a quasi-governmental authority was formed, and toll revenue bonds were issued to raise funds for construction or operation (or both) of the facility.

Peters and Kramer observed that "little research has been done to quantify the impact of toll collection on society as a whole" and therefore they published a comprehensive analysis of the Total Societal Cost (TSC) associated with toll collection as a means of taxation. TSC is the sum of administrative, compliance, fuel and pollution costs. In 2000 they estimated it to be $56,914,732, or 37.3% of revenue collected. They also found that a user of a toll road is subject to a form of triple taxation, and that toll collection is a very inefficient means of funding the development of highway infrastructure. Nakamura and Kockelman (2002) show that tolls are by nature regressive, shifting the burden of taxation disproportionately to the poor and middle classes.

Electronic toll collection, branded under names such as EZ-Pass, SunPass, IPass, FasTrak, Treo, GoodToGo, and 407ETR, became increasingly prevalent to metropolitan areas in the 21st century. Amy Finkelstien, a public finance economist at MIT, reports that as the fraction of drivers using electronic toll collection increased, typically toll rates increased as well, because people were less aware of how much they were paying in tolls.

Electronic tolling proposals that represented the shadow price of electronic toll collection (instead of the TSC) may have misled decision-makers. The general public has additionally endured an increased administrative burden associated with paying toll bills and navigating toll collection company on-line billing systems. Additionally, visitors to a region may incur e-toll tag fees imposed by their rental car company. The Paperwork Reduction Act of 1980 identified and attempted to address a similar problem associated with the government collection of information. Approvals were to be secured by government agencies before promulgating a paper form, website, survey or electronic submission that will impose an information collection burden on the general public. However, the act did not anticipate and thus address the burden on the public associated with funding infrastructure via electronic toll collection instead of through more traditional forms of taxation.

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