UCLA Institute of Transportation Studies

California has set the goal of being carbon neutral by 2045 to prevent the worst impacts of climate change. Transportation continues to be the largest source of greenhouse gas emissions in the state and even with a shift to zero-emission vehicles, the path to climate neutrality requires a reduction in per-capita Vehicle Miles Traveled (VMT). To meet these goals, various road pricing strategies have been proposed and are being implemented across the state. This report aims to develop a comprehensive understanding of what road pricing can and cannot achieve, and how different projects align with the state’s goals of reducing VMT and greenhouse gas emissions. The study involved interviews with 14 officials from city, regional, and state agencies, and analyzed case studies of existing and proposed road pricing projects.Findings indicate that road pricing can effectively reduce congestion along a corridor and generate revenue. However, differences in perspectives exist between state and local agencies regarding success metrics, equity impacts, and revenue allocation. State agencies prioritize VMT and greenhouse gas reductions, while local agencies tend to focus more on operational performance and travel time reliability. Key recommendations to overcome these goal discrepancies include pricing existing lane capacity, increasing government transparency, and investing revenue in alternatives to car travel, particularly to help low-income households. Road pricing represents a promising strategy to address transportation system challenges in California, but will require more inter-agency coordination and clear policy direction from state leaders.