On the effects of central Japan expressway's commuter toll discount policy in nagoya area

Road pricing policies have two equally important objectives that have to be considered: the optimal use of the road network and the fiscal sustainability for the management of the network. The aim of this work is to examine the effects on these two objectives of a recent pricing policy implemented in Japan's expressway networks. Recently the Nippon (Japan) Expressway Companies (NEXCO, operators of Japan's nation wide expressway network) have implemented several toll discount policies for users equipped with electronic toll collectors (ETCs). One of the policies is the commuter discount policy that discounts 50% for a journey on the NEXCO expressway no longer than 100 km during the commuting peak hours. This paper examines its effect on congestion reduction in the road network of Nagoya area and its influence on the use of expressways operated by another major local public expressway company in Nagoya. The congestion easing effect of this policy is compared with a potential marginal cost pricing scheme. These observations suggest that policy coordination regarding toll levels is needed for expressway corporations and transportation authorities for improving transportation efficiency of utilization of the whole network.