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.
3

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
Road Space Rationing
 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
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
 Deterrence
 stiff penalties, fines and demerit points
 Mainly Choice, but
 lack of alternatives
 provider is not responsive to changed behavior
 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
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
Road Space Rationing Congestion Pricing
 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
 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
 Enforcement cameras: Optical vehicle recognition + GPS
 Deterrence and Responsive Regulation (e.g. delayed payment)
 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
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.
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.
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Summary Evaluation
Road Space Rationing Congestion Pricing
 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)
 Government: revenues
 Public/Society:
i) reduced travel time
ii) better air quality
iii) better road safety
 Government: costly investment +
system operations/maintenance
 Public/Society:
i) higher vehicle cost
ii) perceived as “tax”
Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

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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Summary
1
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 the
citizens (end-users) in the policy process to guarantee accountability and transparency.
Developed countries can focus on technological innovations. Developing countries
need to focus on first improving public 2 transportation management.
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Hertie School of Governance – Public Management – Smart Roads - 02 December 2014

Sources
• 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-/
• „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-15
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