Microsoft predicts ‘pay as you-go’ solution to congestion

Congestion pricing is the solution to inner city traffic gridlock, according to Microsoft’s chief economist, Michael Schwarz. Speaking at the IBTTA’s Annual Technology Summit in Orlando, Florida last week, Schwarz said “traffic will be a thing of the past”, citing the difference between the traffic volumes in the free use and managed lanes as evidence. He also highlighted Singapore’s plans to have satellite tolling on all cars in 2020 and noted that almost all new cars are already fitted with SIM car
April 9, 2019 Read time: 2 mins

Congestion pricing is the solution to inner city traffic gridlock, according to 2214 Microsoft’s chief economist, Michael Schwarz.

Speaking at the 63 IBTTA’s Annual Technology Summit in Orlando, Florida last week, Schwarz said “traffic will be a thing of the past”, citing the difference between the traffic volumes in the free use and managed lanes as evidence.

He also highlighted Singapore’s plans to have satellite tolling on all cars in 2020 and noted that almost all new cars are already fitted with SIM cards and GPS adding: “The cost of the technology is nothing.”

Furthermore, as satellite technology allows tolling and congestion pricing to be levied on any and all roads, he predicted that instead of paying one large charge when entering a city or corridor, “we will be paying a lot of congestion charges for each journey”.

He said that without congestion pricing, self-driving cars would cause gridlock and predicted that the introduction of such charging will be made more palatable by a new generation of car-pooling platforms.

“Technology is getting better at finding the ideal [car-pooling] partner,” he said. “Splitting the congestion charge three ways makes it more affordable.”

There will be a full report from the IBTTA conference in the May-June edition of ITS International

Charging, Tolling & RUC

For more information on companies in this article

Related Content

  • Bridging the highway travel information gap
    March 14, 2012
    A new traffic management solution is attempting to bridge the gap in information available on freeways and arterial roadways. Andrew Bardin Williams reports. Agencies responsible for national networks of roads around the world have the ability to measure, analyse and disseminate accurate travel information to drivers. Millions of dollars go into data collection infrastructure to collect traffic congestion and travel time information on major freeways or highways. For example, a driver on the I-210 in the Lo
    Read More
  • Are truck bans the wrong move in the battle for air quality
    June 29, 2016
    Low emission zones and heavy goods vehicles’ access to city centres may at first glance appear attractive but how effective are such controls? Jon Masters reviews emerging trends across Europe. Around 1,700 European cities have implemented low emission zones (LEZs) and in addition some have restricted city centre access for heavy goods vehicles (HGVs). Even those that restrict HGV access, such as Paris and Rome, allow exemptions at certain times and for particular classes of vehicle. But with what effect?
    Read More
  • IBTTA kicks off second Global Road Safety Week
    June 23, 2025
    Be Safe Together: Be the Highway Hero is theme of this year's campaign
    Read More
  • Countering falling fuel tax revenue with mileage fees
    April 20, 2016
    Eric G. O’Rear and Wallace E. Tyner look at the benefits of mileage charges and how these might be implemented. Since the early 1900s, taxes on petrol (gasoline) and diesel fuels have been used to finance the construction and maintenance of roadway infrastructure and, in some countries other government spending too. Now, a combination of improved fuel economy, the advent of hybrid and alternative fuelled vehicles and a reluctance in some countries (especially the US) to increase fuel taxes has led to a d
    Read More

Highlighted Content