Skip to main content

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

For more information on companies in this article

Related Content

  • New York gov: introduce Manhattan road pricing ‘or face 30% fare rise’
    February 12, 2019
    New York’s governor has suggested that unless some form of dynamic pricing is imposed on motorists in the city, there will be a 30% hike in public transit fares and tolls. Democrat Andrew Cuomo said the stiff Metropolitan Transportation Authority (MTA) price rise would hit those using subways, buses, tunnels and bridges, Associated Press (AP) reports. He is calling for tolls which charge motorists entering the most congested areas of Manhattan – south of 60th Street – which he believes could raise $1
  • Tolling faces up to unprecedented challenge
    October 9, 2020
    The next five years are likely to see a number of changes – but the tolling industry will be equal to them, thinks the IBTTA’s Bill Cramer. The best minds in the business are on the case…
  • IBTTA Toll Excellence Awards, new officers announced
    September 15, 2016
    Transportation leaders gathered for IBTTA's 84th Annual Meeting and Exhibition in Denver, Colorado, this week
  • Rethinking urban traffic congestion to put people first
    August 28, 2015
    Following the publication of the Texas A&M Transportation Institute/Inrix report on urban traffic congestion in the US, Robert Puentes, senior fellow with the Brookings Institution’s Metropolitan Policy Program , says that while the focus and themes of the report are largely the same as previous years, big changes are underway in how we study, think about, and address metropolitan traffic congestion. This new, modern approach calls into question whether the endless pursuit of congestion relief makes sense a