Transport Systems
Regulatory
Economic
Mar 2026
by
Nick May & Jeff Dusting

A Thought Experiment: Could NSW's tolls be replaced with demand management schemes?

NSW road users pay some of the highest tolls in the world and still sit in congestion. This thought experiment explores what would change if tolling was redesigned around demand management — pricing access to manage network flow, rather than to service debt.

What if NSW's toll network was redesigned not to collect revenue, but to actually move people? This article examines the international evidence from London, Stockholm, Singapore, and New York, and sets out a staged pathway from corridor-level dynamic pricing to seamless network-wide demand management. It addresses the real obstacles — concession contracts, equity risks, algorithmic governance, and political resistance — while making the case that the architecture decisions being made today will determine whether demand management remains a policy ambition or becomes a practical reality.

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