Smart Roads:How Technology and Innovation Can Address Urban Congestion

Ben, Dominik, Sabeeh, Riya

Hertie School of Governance

Public Management – Innovation and Technology - 02 December 2014

1) Outline global trends contributing to the problem

2) Explain the characteristics of the policy problem

3) Present solutions for congestions in urban areas

4) Evaluate these approaches

5) Provide an outlook on future potential of smart roads

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What We Want to Discuss with You

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Global Trends

• The world’s population is expected to exceed 9 billion by 2050.

• In 1950, 30% of the global population was urban, it is expected to rise to 66% by 2050.

• By 2030, the world is expected to have 41 megacities (>10 million inhabitants).

• Increasing globalization Increased demand for infrastructure.

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Resulting Policy Issues

• Increasing urbanization puts pressure on the environment.

• In order to make this process sustainable, the UN recommends the appropriate use of ICT in service delivery and regulation.

• Though, in developed countries, people are beginning to switch to more efficient modes of transport, cars still pose a major transport issue to urban areas.

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Innovation and Technology in Travel Demand Management: Case Studies

Rationing the scarce common good: road capacity

Restricted traffic access into city center/ district based upon digits of the license number on pre-established days/peak hours

Very few infrastructure measures necessary

No innovation/ new technologies required

common in Latin America; e.g. México City, São Paulo, La Paz

Road Space Rationing

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Policy Assessment (1/2): Road Space Rationing

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Problem Solving

Enforce-ment

Mode of Governing

Quality: Good input and process but poor outcomes possible Efficiency: Theoretical 20% reduction of traffic is expected (at 2 digits) Equity: Forces all drivers to reduce auto travel (Multiple cars?) Responsiveness: User needs partly met Accountability: High transparency and strong enforcement

Context Depending on switching costs, public transport may benefit Cities applying RSR have mostly very few resources and poor

infrastructure

Road Space Rationing addresses the problem but is no long term solution

Mainly Choice, but lack of alternatives provider is not responsive to changed behavior

Deterrence stiff penalties, fines and demerit points

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Congestion Pricing: ERP System

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Innovation and Technology in Travel Demand Management: Case Studies

Rationing the scarce common good: road capacity

Restricted traffic access into city center/ district based upon digits of the license number on pre-established days/peak hours

Very few infrastructure measures necessary

No innovation/ new technologies required

common in Latin America; e.g. México City, São Paulo, La Paz

Road Space Rationing Congestion Pricing

Wireless deduction of payments through a network of gantries in congestion-prone areas

Toll booths deemed inconvenient vehicles must stop to pay fees, which only adds to congestion

In-vehicle unit (IU) accepts “CashCard” (with stored value)

Gantries consist of two sets of sensors: 1) short-range wireless system to communicate with IU; 2) optical vehicle recognition

Singapore was the first city to implement it in 1998

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Congestion Pricing: ERP System

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Policy Assessment (2/2): Congestion Pricing (Electronic Road Pricing, Singapore)

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Problem Solving

Enforce-ment

Mode of Governing

Quality: named one of the world’s best infrastructure projects (KPMG) Efficiency: average car speeds: 27 km/hr (vs London and Tokyo) Equity: assumes everyone is equal but car-owners often well-to-do Responsiveness: very user-friendly, but may be perceived as tax Accountability: Transparent; variable, predictable fees; enforcement

Context Impact on other services: increased use of public transport + carpools Cities for application: London, Stockholm, NL, other Asian cities

ERP is an efficient system, provided that other cities can afford the investment.

Command-and-Control: technology calibrated to reduce congestion Trust: ‘knowledge culture’/technocratic systematic policy analysis Choice: good public transport system + can shift to non-priced roads

Enforcement cameras: Optical vehicle recognition + GPS Deterrence and Responsive Regulation (e.g. delayed payment)

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

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Summary Evaluation

Easy to understand and fast to implement

Strong short term effects High transparency for users

Poor long term effects (user adapt leading to unfair outcomes)

No additional revenue for infrastructure (addresses only demand and supply of travel capacity)

Road Space Rationing Congestion Pricing

Government: revenues

Public/Society:i) reduced travel timeii) better air qualityiii) better road safety

Government: costly investment + system operations/maintenance

Public/Society:i) higher vehicle costii) perceived as “tax”

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Shift towards policies involving Intelligent Transport Systems (ITS) need to be explained clearly to the public. Public acceptance may not come easy even after implementation, but revenues can be used to invest in innovative and advanced technologies.

The Roads Ahead

• In-pavement sensors• Complete weather system controls• Roads that charge electric cars as they drive!

• Full-time monitoring and control oversight

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From a Policymaker’s Perspective

• UK: Seatbelt heart monitors, control oversight– Can we completely prevent all accidents?– Is it worthwhile to try preventing all accidents?

• Singapore and US: Autonomy will become impossible– Is privacy that important?

• Roads are owned by different groups – Federal, State, Private, etc.– Who pays for it?– Coordination/turf concerns (many organizations intersect)

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Developed countries can focus on technological innovations. Developing countries need to focus on first improving public transportation management.

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Summary

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

The intersection of innovation and policymaking typically makes life easier for the world and more complicated for the policy writer.

Developed countries can focus on technological innovations. Developing countries need to focus on first improving public transportation management.

Technology improves our management of urban life but potentially at the cost of civil liberties.

As technologies become more sophisticated, it is crucial for governments to engage thecitizens (end-users) in the policy process to guarantee accountability and transparency.

• Dong, Guo. „The State and Future of Congestion Pricing in China.“ The State of the Future. November 14, 2013. URL:http://blogs.ei.columbia.edu/2013/11/14/the-state-and-future-of-congestion-pricing-in-china/

• Eskeland, G.S.; Feyzioglu, T. (1995): „Rationing Can Backfire - The Day Without A Car in Mexico.“ The World Bank Economic Review (vol. 11, no. 3: 383-408). URL: http://elibrary.worldbank.org/doi/pdf/10.1093/wber/11.3.383

• Gilpin, Lyndsey. „How ‚Solar Roadways‘ Plan to Create Smart Roads to Produce Clean Energy and Save Lives and Money.“ Tech Republic. June 5, 2014. URL: http://www.techrepublic.com/article/how-solar-roadways-plans-to-create-smart-roads-to-produce-clean-energy-and-save-lives-and-money/

• „Road Space Rationing in Heavily Congested Cities.“ mioVision. December 12, 2012. URL: http://miovision.com/blog/road-space-rationing-in-heavily-congested-cities/

• Solomon, Lawrence. „Smart t Roads are Making New Mass Transit and Expressways Obsolete.“ Financial Post. September 5, 2013. URL: http://opinion.financialpost.com/2013/09/05/lawrence-solomon-smart-roads-are-making-new-mass-transit-and-expressways-obsolete/

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Sources

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

• “UN E-Governance Survey 2014.” United Nations Public Administration Country Studies. Updated July 17, 2014. URL: http://unpan3.un.org/egovkb/en-us/Reports/UN-E-Government-Survey-2014

• „The Virginia Smart Road.“ Virginia Tech Transportation Institute. June 1, 2014.• „Electronic Road Pricing.“ Climate Tech Wiki. URL:

http://www.climatetechwiki.org/technology/erp • „Electronic Road Pricing System in Singapore.“ Mitsubishi Global. URL: https://www.mhi-

global.com/products/detail/electronic_road_pricing_system.html • „ERP System among the world‘s best infrastructural projects: KPMG report.“ Channel News

Asia, 1 December 2014. URL: http://www.channelnewsasia.com/news/singapore/erp-system-among-world-s/1503604.html

• Goh, Mark. „Congestion Management and Electronic Road Pricing in Singapore.“ Journal of Transport Geography, (vol. 10, no. 1, March 2002: 29-38). URL: http://www.sciencedirect.com/science/article/pii/S0966692301000369

• Chin, Kian-Keong. „Road Pricing – Singapore‘s 30 Years of Experience.“ CES ifo. URL: http://www.cesifo-group.de/pls/guestci/download/CESifo%20DICE%20Report%202005/CESifo%20DICE%20Report%203/2005/dicereport305-forum3.pdf

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Sources

Hertie School of Governance – Public Management – Smart Roads - 02 December 2014