BRIDGE AND TUNNEL TOLL ELASTICITIES IN NEW-YORK - SOME RECENT-EVIDENCE

In 1992, the authors carried out a statistical analysis of Triborough Bridge and Tunnel Authority (TBTA) crossings in New York City, to determine the impact of toll increases on traffic volumes and revenue. Using twelve years of monthly time-series data, we developed a set of multiple regression models that estimated traffic volumes on each TBTA bridge and tunnel as a function of the toll level and other explanatory variables. In most cases, the estimated toll elasticities were negative and much less than 1.0 in absolute value; the median toll elasticity for automobiles was found to be -0.10. Our finding that automobile travel demand is highly inelastic with respect to toll rates is consistent with most previous travel demand studies.