Capitalism at Work on an Interstate Highway

Traffic speeds during the peak eastbound commute on the 66 Express Lanes Inside the Beltway have dropped to 35 mph. "Toll-tweaking" and changing the algorithm are achieving limited success on this dynamically-tolled stretch.

2 minute read

June 12, 2018, 1:00 PM PDT

By Irvin Dawid


Virginia Toll Lanes

Adam Moss / Flickr

During commute hours, nine miles [png] of Interstate 66 in Northern Virginia, formerly known as the 66 Express Lanes Inside the Beltway, may operate like no other public roadway, let alone interstate, in the United States. During the morning restricted travel period from 5:30 a.m to 9:30 a.m., all (two to three) eastbound lanes are dynamically priced—there are no adjacent general purpose lanes for single-occupant vehicles (SOVs) to take to avoid paying a toll, which, on occasion, top $40.

The afternoon restricted travel period extends from 3 p.m. to 7 p.m. on all the westbound lanes. Once again, no "free lane" to choose if you lack a passenger.

The uncapped, dynamic tolling makes the roadway stand out as an example of how effective congestion or value pricing is at reducing congestion, encouraging modal alternatives, and funding public transit with toll revenues.

The operator of these time-restricted, high-occupancy toll (HOT) lanes, the Virginia Department of Transportation, is trying, perhaps paradoxically, to reduce the tolls and, at the same time, increase the speed, during the most congested part of the commute hour, from 8:15 a.m to 8:30 a.m, "when average speeds in April slowed below 35 mph," reports Max Smith for WTOP News on June 8. The roadway is unique for another reason: the low number of commute-hour SOVs.

About two-thirds of the vehicles on the road at that time are riding free — motorcycles, buses, and cars carrying at least two people with an E-ZPass Flex switched to HOV mode. Speeds in the morning remained slower than the same period a year earlier between 7:30 a.m. and 9:15 a.m.

While one way to deal with the slowdowns around 8:30 a.m. could be to raise tolls even higher as speeds significantly slow at that time, Virginia Transportation Secretary Shannon Valentine  hopes changes to the tolling algorithm, along with better communication to commuters, could provide a different path if drivers change how they commute to either carpool, take the bus or go in at a different time.

It is somewhat ironic that an interstate highway that takes workers to the seat of American government would be one of the best examples in the country of applying market forces to auto travel.

“Because this is a true dynamic tolling system where people are making decisions in the moment based on the cost, it is true capitalism. … If we mandate certain limits, we can’t adjust it,” Valentine said.

Hat tip to AASHTO Daily Transportation Update.

Friday, June 8, 2018 in WTOP

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Aerial view of Albuquerque, New Mexico at sunset.

New State Study Suggests Homelessness Far Undercounted in New Mexico

An analysis of hospital visit records provided a more accurate count than the annual point-in-time count used by most agencies.

May 16 - Source NM

Close-up on white bike helmet lying on pavement with blurred red bike on its side in background abd black car visible behind it.

Michigan Bills Would Stiffen Penalties for Deadly Crashes

Proposed state legislation would close a ‘legal gap’ that lets drivers who kill get away with few repercussions.

May 16 - Wood TV 8

Muni bus on red painted bus-only lane in downtown San Francisco, California.

Report: Bus Ridership Back to 86 Percent of Pre-Covid Levels

Transit ridership around the country was up by 85 percent in all modes in 2024.

May 16 - Mass Transit