Usage-based road pricing and potential equity issues: A study of commuters in South East Queensland, Australia

Usage-based pricing has gained significant traction in recent times with respect to addressing transport challenges. Since such pricing is still in its infancy, at least in the context of urban transport, it is important to understand its implications and, to be specific, any potential equity issues. Based on a hypothetical usage-based pricing scheme together with 2009-2012 Household Travel Survey data of commuters residing in South East Queensland (SEQ), Australia, the results indicate that usage-based road pricing will lead to both horizontal and vertical inequity for some commuters. Most importantly, a greater percentage of these commuters are already transport and socio-economically disadvantaged. They will have no choice but to compromise their quality of life and bear addition financial burdens in the absence of feasible travel alternatives. To ensure that these social costs do not outweigh the benefits, improving the quality of urban transport systems and its integration with urban form and land use, will be required. Until this is achieved, policy makers should incorporate some form of spatial and/or temporal variability within usage-based road pricing in the studied, and similar, urban contexts.

Automated summary

Usage-based pricing has made significant progress in addressing transport challenges, but it may lead to equity issues, especially for disadvantaged commuters. To avoid social costs outweighing benefits, improving the quality of urban transport systems and integrating them with urban form and land use is necessary. Until then, policymakers should consider spatial and/or temporal variability in usage-based road pricing in urban contexts.