Road market addendum

When I wrote this post, I wrote, "An obvious start would be to privatize the freeways between cities or at least make them toll roads." I forgot that an equally obvious start might be to follow London and Singapore's lead(s) with congestion pricing. Fortunately, VoxEU is here to help me remember such things. Georgina Santos writes,

Singapore realised this in the 1970s when, in the midst of high economic growth rates, it decided to reduce traffic congestion.

...

The scheme was a success. The ALS increased average speeds from 18 to 35 km per hour (Willoughby, 2000, p.10).

...

The most interesting feature about ERP charges is that they vary according to vehicle type, time of day, and location of the gantry. For example, charges for passenger cars, taxis and light goods vehicles vary between S$0.50 and S$4.50. There is even a special rate for the first five minutes of each new charging period to discourage motorists from speeding up or slowing down to avoid higher charges. The charges are published on the Land Transport Authority website, and are adjusted periodically in order to maintain target speeds.
...

Singapore adjusts the various charges to maintain target speeds. In London the £5 and the £8 charges were decided almost arbitrarily, although with some public consultation.

Altering the charges to maintain a target speed - that's pretty cool. It ain't private roads, but it gets people used to paying to drive (is this a legal wing stub?). It probably also comes close to internalizing some of the externalities of road use.