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Congestion pricing or congestion charges is a system of surcharging users of
public goods that are subject to congestion through excess
demand
In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item ...
, such as through higher peak charges for use of
bus services,
electricity
Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as describ ...
,
metros,
railway
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
s,
telephone
A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...
s, and
road pricing
Road pricing (also road user charges) are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage the use of certain classes of vehicle, fuel sour ...
to reduce
traffic congestion;
airline
An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...
s and
shipping
Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been ...
companies may be charged higher fees for slots at
airports and through
canal
Canals or artificial waterways are waterways or engineered channels built for drainage management (e.g. flood control and irrigation) or for conveyancing water transport vehicles (e.g. water taxi). They carry free, calm surface flo ...
s at busy times. Advocates claim this
pricing strategy regulates demand, making it possible to manage congestion without increasing
supply
Supply may refer to:
*The amount of a resource that is available
**Supply (economics), the amount of a product which is available to customers
**Materiel, the goods and equipment for a military unit to fulfill its mission
*Supply, as in confidenc ...
.
According to the economic theory behind congestion pricing, the objective of this policy is the use of the
price mechanism to make users conscious of the costs that they impose upon one another when consuming during the peak demand, and that they should pay for the additional congestion they create, thus encouraging the redistribution of the demand in space or in time, and forcing them to pay for the
negative externalities they create, making users more aware of their impact on the
environment.
[
]Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
was the first country to introduce congestion pricing on its urban roads in 1975, and was refined in 1998
1998 was designated as the ''International Year of the Ocean''.
Events January
* January 6 – The ''Lunar Prospector'' spacecraft is launched into orbit around the Moon, and later finds evidence for frozen water, in soil in permanently s ...
. Since then, its application on other urban roads around the world is currently limited to a few cities, including London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, Stockholm, Milan
Milan ( , , Lombard: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city proper in Italy after Rome. The city proper has a population of about 1.4 million, while its metropolitan city h ...
, and Gothenburg, Sweden, as well as a few smaller towns, such as Durham Durham most commonly refers to:
*Durham, England, a cathedral city and the county town of County Durham
*County Durham, an English county
* Durham County, North Carolina, a county in North Carolina, United States
*Durham, North Carolina, a city in N ...
, England; Znojmo
Znojmo (; german: Znaim) is a town in the South Moravian Region of the Czech Republic. It has about 33,000 inhabitants. Znojmo is the historical and cultural centre of southwestern Moravia and the second most populated town in the South Moravian ...
, Czech Republic
The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...
; Riga (ended in 2008), Latvia; and Valletta
Valletta (, mt, il-Belt Valletta, ) is an administrative unit and capital of Malta. Located on the main island, between Marsamxett Harbour to the west and the Grand Harbour to the east, its population within administrative limits in 2014 wa ...
, Malta. It has also been proposed in New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
and San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...
. Four general types of systems are in use: a cordon area around a city center, with charges for passing the cordon line; area wide congestion pricing, which charges for being inside an area; a city center toll ring, with toll collection surrounding the city; and corridor or single facility congestion pricing, where access to a lane or a facility is priced.
Implementation of congestion pricing has reduced congestion in urban areas and increased house values, but has also sparked criticism and public discontent. Critics maintain that congestion pricing is not equitable, places an economic burden on neighboring communities, has a negative effect on retail businesses and on economic activity in general, and represents another tax levy.
A survey of economic literature on the subject, however, finds that most economists agree that some form of road pricing to reduce congestion is economically viable, although there is disagreement on what form road pricing should take. Economists disagree over how to set tolls, how to cover common costs, what to do with any excess revenues, whether and how "losers" from tolling previously free roads should be compensated, and whether to privatize highways. Also, concerns regarding fossil fuel supply and urban transport high emissions of greenhouse gases in the context of climate change
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to ...
have renewed interest in congestion pricing, as it is considered one of the demand-side mechanisms that may reduce oil consumption.
Description
Congestion pricing is a concept from market economics regarding the use of pricing mechanisms to charge the users of public goods for the negative externalities generated by the peak demand in excess of available supply. Its economic rationale is that, at a price of zero, demand exceeds supply, causing a shortage
In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply ( surplus).
Definitions
In a perfect market (one that matches a si ...
, and that the shortage should be corrected by charging the equilibrium price rather than shifting it down by increasing the supply. Usually this means increasing price
A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the ...
s during certain periods of time or at the places where congestion occurs; or introducing a new usage tax
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
or charge when peak demand exceeds available supply in the case of a tax-funded public good provided free at the point of usage.
According to the economic theory behind congestion pricing, the objective of this policy is the use of the price mechanism to make users more aware of the costs that they impose upon one another when consuming during the peak demand, and that they should pay for the additional congestion they create, thus encouraging the redistribution of the demand in space or in time, or shifting it to the consumption of a substitute public good; for example, switching from private transport to public transport.
This pricing mechanism has been used in several public utilities and public services for setting higher prices during congested periods, as a means to better manage the demand for the service, and whether to avoid expensive new investments just to satisfy peak demand, or because it is not economically or financially feasible to provide additional capacity to the service. Congestion pricing has been widely used by telephone
A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...
and electric utilities
An electric utility is a company in the electric power industry (often a public utility) that engages in electricity generation and distribution of electricity for sale generally in a regulated market. The electrical utility industry is a major p ...
, metros, railway
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
s and autobus services, and has been proposed for charging internet access. It also has been extensively studied and advocated by mainstream transport economists for port
A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as H ...
s, waterway
A waterway is any navigable body of water. Broad distinctions are useful to avoid ambiguity, and disambiguation will be of varying importance depending on the nuance of the equivalent word in other languages. A first distinction is necessary b ...
s, airport
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consists of a landing area, which comprises an aerially accessible open space including at least one operationally active surfa ...
s and road pricing
Road pricing (also road user charges) are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage the use of certain classes of vehicle, fuel sour ...
, though actual implementation is rather limited due to the controversial issues subject to debate regarding this policy, particularly for urban roads, such as undesirable distribution effects, the disposition of the revenues raised, and the social and political acceptability of the congestion charge.
Congestion pricing is one of a number of alternative demand side (as opposed to supply side
Supply-side economics is a Macroeconomics, macroeconomic theory that postulates economic growth can be most effectively fostered by Tax cuts, lowering taxes, Deregulation, decreasing regulation, and allowing free trade. According to supply-sid ...
) strategies offered by economists to address traffic congestion. Congestion is considered a negative externality by economists. An externality occurs when a transaction causes costs or benefits to a third party, often, although not necessarily, from the use of a public good: for example, if manufacturing or transportation cause air pollution imposing costs on others when making use of public air. Congestion pricing is an efficiency pricing strategy that requires the users to pay more for that public good, thus increasing the welfare gain or net benefit for society.
Nobel-laureate William Vickrey
William Spencer Vickrey (21 June 1914 – 11 October 1996) was a Canadian-American professor of economics and Nobel Laureate. Vickrey was awarded the 1996 Nobel Memorial Prize in Economic Sciences with James Mirrlees for their research into the e ...
is considered by some to be the father of congestion pricing, as he first proposed adding a distance- or time-based fare system for the New York City Subway in 1952. In the road transportation arena these theories were extended by Maurice Allais
Maurice Félix Charles Allais (31 May 19119 October 2010) was a French physicist and economist, the 1988 winner of the Nobel Memorial Prize in Economic Sciences "for his pioneering contributions to the theory of markets and efficient utilization o ...
, Gabriel Roth who was instrumental in the first designs and upon whose World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
recommendation the first system was put in place in Singapore. Also, it was considered by the Smeed Report
The Smeed Report (titled Road Pricing: The Economic and Technical Possibilities) was a study into alternative methods of charging for road use, commissioned by the UK government between 1962 and 1964 led by R. J. Smeed. The report stopped short o ...
, published by the British Ministry of Transport
A ministry of transport or transportation is a ministry responsible for transportation within a country. It usually is administered by the ''minister for transport''. The term is also sometimes applied to the departments or other government ag ...
in 1964, but its recommendations were rejected by successive British governments.
The transport economics rationale for implementing congestion pricing on roads, described as "one policy response to the problem of congestion", was summarized in testimony to the United States Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
Joint Economic Committee in 2003: "congestion is considered to arise from the mispricing of a good; namely, highway capacity at a specific place and time. The quantity supplied (measured in lane-miles) is less than the quantity demanded at what is essentially a price of zero. If a good or service is provided free of charge, people tend to demand more of it—and use it more wastefully—than they would if they had to pay a price that reflected its cost. Hence, congestion pricing is premised on a basic economic concept: charge a price in order to allocate a scarce resource to its most valuable use, as evidenced by users' willingness to pay for the resource".
Roads
Practical implementations of road congestion pricing are found almost exclusively in urban areas, because traffic congestion is common in and around city centers. Congestion pricing can be fixed (the same at all times of day and days of the week), variable (set in advance to be higher at typically high-traffic times), or dynamic (varying according to actual conditions).
As congestion pricing has been increasing worldwide, the schemes implemented have been classified into four different types: cordon area around a city center; area wide congestion pricing; city center toll ring; and corridor or single facility congestion pricing.
Cordon area and area wide
Cordon area congestion pricing is a fee or tax paid by users to enter a restricted area, usually within a city center, as part of a demand management strategy to relieve traffic congestion within that area. The economic rationale for this pricing scheme is based on the externalities
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
or social costs of road transport, such as air pollution
Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different typ ...
, noise, traffic accidents, environmental and urban deterioration, and the extra costs and delays imposed by traffic congestion upon other drivers when additional users enter a congested road.
The first implementation of such a scheme was Singapore Area Licensing Scheme
The Singapore Area Licensing Scheme (ALS), ( Malay : Skim Perlesenan Kawasan Singapura) was a road pricing scheme introduced in 1975 to 1998, charged drivers who were entering downtown Singapore, and thereby aimed to manage traffic demand. This ...
in 1975, together with a comprehensive package of road pricing
Road pricing (also road user charges) are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage the use of certain classes of vehicle, fuel sour ...
measures, stringent car ownership rules and improvements in mass transit. Thanks to technological advances in electronic toll collection, electronic detection, and video surveillance technology, collecting congestion fees has become easier. Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
upgraded its system in 1998, and similar pricing schemes were implemented in Rome
, established_title = Founded
, established_date = 753 BC
, founder = King Romulus (legendary)
, image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg
, map_caption ...
in 2001, London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
in 2003 with extensions in 2007; Stockholm in 2006, as a seven-month trial, and then on a permanent basis. In January 2008 Milan
Milan ( , , Lombard: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city proper in Italy after Rome. The city proper has a population of about 1.4 million, while its metropolitan city h ...
began a one-year trial program called Ecopass The Ecopass program was a traffic pollution charge implemented in Milan, Italy, as an urban toll for some motorists traveling within a designated traffic restricted zone or ZTL ( it, Zone a Traffico Limitato), corresponding to the central ''Cerchia ...
, charging low emission standard vehicles and exempting cleaner and alternative fuel vehicle
An alternative fuel vehicle is a motor vehicle that runs on alternative fuel rather than traditional petroleum fuels (petrol or petrodiesel). The term also refers to any technology (e.g. electric car, hybrid electric vehicles, solar-powered ...
s. The Ecopass program was extended until December 31, 2011, and on January 16, 2012, was replaced by Area C, a trial program that converted the scheme from a pollution-charge to a congestion charge. The Gothenburg congestion tax
The Gothenburg congestion tax ( sv, Trängselskatt i Göteborg), also referred to as the Gothenburg congestion charge, is a congestion pricing system implemented as a tax levied on most vehicles entering and exiting central Gothenburg, Sweden, in ...
was implemented in January 2013 and it was modeled after the Stockholm scheme.
Although there has not yet been a comprehensive study, initial reports from the cities that have implemented congestion pricing schemes show traffic volume reductions from 10% to 30%, as well as reduced air pollution. Also, all cities report public controversy before and after implementation, making political feasibility a critical issue.
Singapore and Stockholm charge a congestion fee every time a user crosses the cordon area, while London charges a daily fee for any vehicle driving in a public road within the congestion charge zone, regardless of how many times the user crosses the cordon. Stockholm has put a cap on the maximum daily tax, while in Singapore the charge is based on a pay-as-you-use principle, and rates are set based on traffic conditions at the pricing points, and reviewed on a quarterly basis. Through this policy, the Land Transport Authority (LTA) reports that the electronic road pricing "has been effective in maintaining an optimal speed range of 45 to 65 km/h for expressways and 20 to 30 km/h for arterial roads".
Singapore
In an effort to improve the pricing mechanism, and, to introduce real-time variable pricing,
Singapore's LTA together with IBM, ran a pilot from December 2006 to April 2007, with a traffic estimation and prediction tool (TrEPS), which uses historical traffic data and real-time feeds with flow conditions from several sources, in order to predict the levels of congestion up to an hour in advance. By accurately estimating prevailing and emerging traffic conditions, this technology is expected to allow variable pricing, together with improved overall traffic management, including the provision of information in advance to alert drivers about conditions ahead, and the prices being charged at that moment.
In 2010 the Land Transport Authority began exploring the potential of Global Navigation Satellite System
A satellite navigation or satnav system is a system that uses satellites to provide autonomous geo-spatial positioning. It allows satellite navigation devices to determine their location (longitude, latitude, and altitude/elevation) to high pr ...
as a technological option for a second generation ERP. LTA objective is to evaluate if the latest technologies available in the market today are accurate and effective enough for use as a congestion charging tool, especially taking into consideration the dense urban environment in Singapore. Implementation of such system is not expected in the short term.
London
A proposal by former Mayor of London Ken Livingstone would have resulted in a new pricing structure based on potential CO2 emission rates by October 2008. The goal was that vehicles with the very lowest CO2 emission rates would be exempted, and those with higher emission rates would pay a new higher charge of £25, with the rest paying the same charge they pay today. However, Livingstone's successor as Mayor of London, Boris Johnson
Alexander Boris de Pfeffel Johnson (; born 19 June 1964) is a British politician, writer and journalist who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 2019 to 2022. He previously served as F ...
, announced at the beginning of his administration that he would reform the congestion charge.
Johnson announced in July 2008 that the new CO2 charging structure will no longer be implemented. Among other reasons, he said the environmental charge would encourage travel by thousands of smaller vehicles free of charge, resulting in increased congestion and pollution. He also discarded plans for extending the charge zone to the suburbs, and announced he will review the western extension implemented in 2007, based on a public consultation planned for September 2008. Having held a five-week public consultation with residents in the autumn of 2008, Johnson decided to remove the 2007 Western Extension from the congestion charging zone beginning on January 4, 2011, to increase the basic charge to , and also to introduce an automated payment system called Congestion Charging Auto Pay (CC Auto Pay), which will charge vehicles based on the number of charging days a vehicle travels within the charging zone each month, and the drivers of these vehicles will pay a reduced daily charge.
In November 2012 Transport for London (TfL) presented a proposal to abolish the Greener Vehicle Discount that benefited, among others, vehicles with small diesel engines that avoid the charge because their engines produce emissions of less than 100g per km of CO2. Approved by Mayor Boris Johnson in April 2013, the Ultra Low Emission Discount (ULED) went into effect on 1 July 2013. The ULED introduced more stringent emission standards that limit the free access to the congestion charge zone to all-electric cars, some plug-in hybrids, and any car or van that emits 75g/km or less of CO2 and meets the Euro 5
The European emission standards are vehicle emission standards for pollution from the use of new land surface vehicles sold in the European Union and EEA member states and the UK, and ships in EU waters. The standards are defined in a seri ...
emission standards for air quality. The measure was designed to curb the growing number of diesel vehicles on London's roads. About 20,000 owners of vehicles registered for the Greener Vehicle Discount by June 2013 were granted a three-year sunset period before they have to pay the full congestion charge. The sunset period ended on 24 June 2016.
Since the congestion charge introduction in 2003, over £1.2 billion has been invested in transport through December 2013, including £960 million on improvements to the bus network; £102 million on roads and bridges; £70 million on road safety; £51 million on local transport/borough plans; and £36 million on sustainable transport and the environment. There has been criticism because during the first ten years since the scheme was implemented, gross revenue reached about £2.6 billion, but only £1.2 billion has been invested, meaning that 54% of gross revenues have been spent in operating the system and administrative expenses.
In June 2014 the standard charge was raised 15% from £10 per day to £11.50. According to TfL the objective of the increase is to recoup inflation over the previous three years and ensure the charge remains an effective deterrent to making unnecessary journeys in central London.
A new toxicity charge, known as T-charge was introduced from 23 October 2017. Older and more polluting cars and vans that do not meet Euro 4 standards will have to pay an extra £10 charge on top of the £11.50 congestion charge to drive in central London, within the Congestion Charge Zone (CCZ). The charge typically applies to diesel and petrol vehicles registered before 2006, and the levy is expected to affect up to 10,000 vehicles. London Mayor Sadiq Khan
Sadiq Aman Khan (; born 8 October 1970) is a British politician serving as Mayor of London since 2016. He was previously Member of Parliament (MP) for Tooting from 2005 until 2016. A member of the Labour Party, Khan is on the party's sof ...
announced the introduction of the scheme in February 2017 after London achieved record air pollution levels the previous month, and the city was put on very high pollution alert for the first time ever, as cold and stationary weather failed to clear toxic pollutants emitted mainly by diesel vehicles.
On 8 April 2019, the T-charge was expanded into the Ultra Low Emission Zone (ULEZ). The zone, which currently covers the City
A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...
and the City of Westminster, will be extended on 25 October 2021 to cover the entire area between the North
North is one of the four compass points or cardinal directions. It is the opposite of south and is perpendicular to east and west. ''North'' is a noun, adjective, or adverb indicating direction or geography.
Etymology
The word ''north ...
and South Circular boundary roads.
Milan
The Ecopass pollution charge ended on December 31, 2011, and was replaced by the Area C scheme, which went into effect on January 16, 2012, initially as an 18-month pilot program. The Area C scheme is a conventional congestion pricing scheme and is based on the same Ecopass geographic area. Vehicles entering the charging zone incur a charge of regardless of their pollution level. However, residents inside the area have 40 free entries per year and then a discounted charge of .[ Electric vehicles, public utility vehicles, police and emergency vehicles, buses and taxis are exempted from the charge. ]Hybrid electric
A hybrid electric vehicle (HEV) is a type of hybrid vehicle that combines a conventional internal combustion engine (ICE) system with an electric propulsion system (hybrid vehicle drivetrain). The presence of the electric powertrain is intended ...
and bi-fuel natural gas vehicles ( CNG and LPG) were exempted until January 1, 2013, Exemption has been postponed until December 31, 2016.
The scheme was made permanent in March 2013. All net earnings from Area C are invested to promote sustainable mobility
Sustainable transport refers to ways of transportation that are sustainable in terms of their social and environmental impacts. Components for evaluating sustainability include the particular vehicles used for road, water or air transport; the ...
and policies to reduce air pollution
Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different typ ...
, including the redevelopment, protection and development of public transport
Public transport (also known as public transportation, public transit, mass transit, or simply transit) is a system of transport for passengers by group travel systems available for use by the general public unlike private transport, typi ...
, "soft mobility" (pedestrians, cycling
Cycling, also, when on a two-wheeled bicycle, called bicycling or biking, is the use of cycles for transport, recreation, exercise or sport. People engaged in cycling are referred to as "cyclists", "bicyclists", or "bikers". Apart from t ...
, Zone 30) and systems to rationalize the distribution of goods.
Stockholm
On 1 January 2016, congestion taxes were increased in the inner-city parts of Stockholm, and also the congestion tax was introduced on Essingeleden Essingeleden is a motorway that goes from Solna to Stockholm, Sweden, crossing the westmost parts of central Stockholm, by going over Kungsholmen, Lilla Essingen, and Stora Essingen.
Essingeleden has three bridges – Fredhällsbron (270 m), Essin ...
motorway
A controlled-access highway is a type of highway that has been designed for high-speed vehicular traffic, with all traffic flow—ingress and egress—regulated. Common English terms are freeway, motorway and expressway. Other similar terms i ...
. This was the first increase of the tax since it was introduced permanently in 2007.
The congestion tax is being introduced at the access and exit ramps of two interchanges on Essingeleden in order to reduce traffic jams in peak periods, and with shorter traffic jams on Essingeleden, the surrounding roads are expected to have shorter tailbacks. The transport agencies involved expected to reduce traffic on Essingeleden by some 10% in peak hours.[ One week after the tax began to be charged, traffic on the motorway had decreased by 22% compared to a normal day in mid-December.][
The tax increase was implemented not only to improve accessibility and the environment, but also to help develop the infrastructure. The additional funds will contribute to finance the extension of the Stockholm metro.] As the Stockholm congestion tax varies by time of the day, the highest increase took place at the two busiest rush hour periods, 7:30 to 8:29, and 16:00 to 17:29, from SEK 20 to SEK 30. The objective was to steer the traffic towards other times of the day and public transport, and in this way reduce congestion in the Inner City area. Also the maximum amount levied was raised to SEK 105 per day and vehicle.[
]
Norway
Several cities in Norway have tolled entrances to the more central urban areas, the first being Bergen
Bergen (), historically Bjørgvin, is a city and municipality in Vestland county on the west coast of Norway. , its population is roughly 285,900. Bergen is the second-largest city in Norway. The municipality covers and is on the peninsula o ...
in 1986.
Starting with Trondheim in 2010, later in Kristiansand, Bergen and Oslo, time differing fees were introduced, so that rush hours (in Oslo 06.30 – 09.00 and 15.00 – 17.00) cost more. The price is (in 2020) typically NOK 28 (€2.80) per passage, but to enter Oslo to the inner city and leave means passing five stations which costs NOK 126 (€12,70).
Old town centres
Around Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
several relatively small cities, such as Durham Durham most commonly refers to:
*Durham, England, a cathedral city and the county town of County Durham
*County Durham, an English county
* Durham County, North Carolina, a county in North Carolina, United States
*Durham, North Carolina, a city in N ...
, England; Znojmo
Znojmo (; german: Znaim) is a town in the South Moravian Region of the Czech Republic. It has about 33,000 inhabitants. Znojmo is the historical and cultural centre of southwestern Moravia and the second most populated town in the South Moravian ...
, Czech Republic; Riga, Latvia; and Valletta
Valletta (, mt, il-Belt Valletta, ) is an administrative unit and capital of Malta. Located on the main island, between Marsamxett Harbour to the west and the Grand Harbour to the east, its population within administrative limits in 2014 wa ...
, Malta, have implemented congestion pricing to reduce traffic crowding, parking problems and pollution, particularly during the peak tourism season.
Durham Durham most commonly refers to:
*Durham, England, a cathedral city and the county town of County Durham
*County Durham, an English county
* Durham County, North Carolina, a county in North Carolina, United States
*Durham, North Carolina, a city in N ...
introduced charges in October 2002, reducing vehicle traffic by 85% after a year; prior to this 3,000 daily vehicles had shared the streets with 17,000 pedestrians.
Valletta
Valletta (, mt, il-Belt Valletta, ) is an administrative unit and capital of Malta. Located on the main island, between Marsamxett Harbour to the west and the Grand Harbour to the east, its population within administrative limits in 2014 wa ...
has reduced daily vehicles entering the city from 10,000 to 7,900; making 400 readily available parking places in the center. There has been a 60% drop in car stays by non-residents of more than eight hours, but there has been a marked increase of 34% in non-residential cars visiting the city for an hour or less.
Rejected proposals
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
conducted a pilot test on an electronic congestion pricing system between 1983 and 1985 with positive results. However, public opposition against this policy stalled its permanent implementation.
In 2002 Edinburgh
Edinburgh ( ; gd, Dùn Èideann ) is the capital city of Scotland and one of its 32 council areas. Historically part of the county of Midlothian (interchangeably Edinburghshire before 1921), it is located in Lothian on the southern shore of t ...
, United Kingdom, initiated an implementation process; a referendum
A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
was conducted in 2005, with a majority of 74.4% rejecting the proposal.
Councils from across the West Midlands in the United Kingdom, including Birmingham
Birmingham ( ) is a City status in the United Kingdom, city and metropolitan borough in the metropolitan county of West Midlands (county), West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1. ...
and Coventry
Coventry ( or ) is a city in the West Midlands, England. It is on the River Sherbourne. Coventry has been a large settlement for centuries, although it was not founded and given its city status until the Middle Ages. The city is governed b ...
, rejected the idea of imposing congestion pricing schemes on the area in 2008, despite promises from central government of transport project funding in exchange for the implementation of a road pricing pilot scheme.
In 2007, New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
shelved a proposal for a three-year pilot program for implementation in Manhattan
Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
, and a new proposition was denied in 2008, with potential federal grants of being reallocated to other American cities.
Greater Manchester
Greater Manchester is a metropolitan county and combined authority area in North West England, with a population of 2.8 million; comprising ten metropolitan boroughs: Manchester, Salford, Bolton, Bury, Oldham, Rochdale, Stockport, Tam ...
, United Kingdom, was considering a scheme with two cordons, one covering the main urban core of the Greater Manchester Urban Area and another covering the Manchester city centre
Manchester City Centre is the central business district of Manchester in Greater Manchester, England situated within the confines of Great Ancoats Street, A6042 Trinity Way, and A57(M) Mancunian Way which collectively form an inner ring road. ...
. The measure was supported by the government, but three local authorities rejected it ( Bury, Trafford
Trafford is a metropolitan borough of Greater Manchester, England, with an estimated population of 235,493 in 2017. It covers Retrieved on 13 December 2007. and includes the area of Old Trafford and the towns of Altrincham, Stretford, Ur ...
and Stockport); the support of two-thirds of Manchester's 10 local councils was needed for it to be implemented. A comprehensive transport investment package for Manchester, which included the congestion pricing element, was released for further public consultation and was to be subject of a referendum in December 2008. On 12 December 2008 the scheme was overwhelmingly rejected by 10 out of 10 councils by a public referendum.
Current proposals
= United States
=
In August 2007, the United States Department of Transportation
The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the President of the United States a ...
selected five metropolitan areas to initiate congestion pricing demonstration projects under the Urban Partnerships Congestion Initiative, for US$1 billion of federal funding. The five projects under this initiative are Golden Gate Bridge in San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...
, State Route 520 serving downtown Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
and communities to its east, Interstate 95 between Miami
Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
and Ft. Lauderdale, Interstate 35W serving downtown Minneapolis
Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...
, and a variable rate parking meter system in Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
, which replaced New York City after it left the program in 2008.
San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...
transport authorities began a feasibility study in 2006 to evaluate the introduction of congestion pricing.[ ''Available for download''] The charge would be combined with other traffic reduction implementations, allowing money to be raised for public transit improvements and bike and pedestrian enhancements. The initial pricing scenarios were presented in public meetings conducted in December 2008, and the final study results were announced in November 2010, proposing modified alternatives based on the public's feedbacks, and the updated proposal calls for implementing a six-month to one-year trial in 2015.
Governor Andrew Cuomo
Andrew Mark Cuomo ( ; ; born December 6, 1957) is an American lawyer and politician who served as the 56th governor of New York from 2011 to 2021. A member of the Democratic Party, he was elected to the same position that his father, Mario Cuo ...
reintroduced a congestion pricing proposal for New York City in 2017 in response to the New York City Subway's state of emergency
A state of emergency is a situation in which a government is empowered to be able to put through policies that it would normally not be permitted to do, for the safety and protection of its citizens. A government can declare such a state du ...
, a proposal that Mayor Bill de Blasio
Bill de Blasio (; born Warren Wilhelm Jr., May 8, 1961; later Warren de Blasio-Wilhelm) is an American politician who served as the 109th mayor of New York City from 2014 to 2021. A member of the Democratic Party, he held the office of New Yor ...
opposed. A commission to investigate the feasibility of congestion pricing, organized in late 2017, found that a congestion pricing scheme could benefit New York City. Cuomo's congestion pricing plan was approved in March 2019, though congestion pricing in New York City would not go into effect until 2022 at the earliest. New York City's congestion pricing zone will be the first in North America.
= China
=
In September 2011, local officials announced plans to introduce congestion pricing in Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
. No details were provided regarding the magnitude of the congestion charges or the charge zone. The measure was initially proposed in 2010 and was recommended by the World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
. A similar scheme was proposed for the city Guangzhou
Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
, Guangdong
Guangdong (, ), alternatively romanized as Canton or Kwangtung, is a coastal province in South China on the north shore of the South China Sea. The capital of the province is Guangzhou. With a population of 126.01 million (as of 2020) ...
province, in early 2010. The city opened a public discussion on whether to introduce congestion charges. An online survey conducted by two local news outlets found that 84.4% of respondents opposed the charges.
In December 2015, the Beijing Municipal Commission of Transport announced plans to introduce congestion charges in 2016. According to city's motor vehicle emission control plan 2013–2017, the congestion charge will be a real-time variable pricing scheme based on actual traffic flows and emissions data, and allow the fee to be charged for different vehicles and varying by time of the day and for different districts. The Dongcheng and Xicheng are among the districts that are most likely to firstly implement congestion charge. Vehicle emissions account for 31% of the city's smog sources, according to Beijing Environmental Protection Bureau. The local government has implemented already several policies to address air quality and congestion, such as a driving restriction
Road space rationing, also known as alternate-day travel, driving restriction and no-drive days ( es, restricción vehicular; pt, rodízio veicular; french: circulation alternée), is a travel demand management strategy aimed to reduce the ext ...
scheme based upon the last digits on their license plates. Also a vehicle quota system was introduced in 2011, awarding new car licenses through a lottery, with a ceiling of 6 million units set by the city authority for 2017. In May 2016, the Beijing city legislature announced it will consider to start levying traffic congestion charges by 2020 as part of a package of measures to reform the vehicle quota system.[ , the city's environmental and transport departments are working together on a congestion pricing proposal.][ From the print edition.]
= Brazil
=
In January 2012, the federal government of Brazil
The Federal Government of Brazil (''Governo Federal'') is the national government of the Federative Republic of Brazil, a republic in South America divided in 26 states and a federal district. The Brazilian federal government is divided in thre ...
enacted the Urban Mobility Law that authorizes municipalities to implement congestion pricing to reduce traffic flows. The law also seeks to encourage the use of public transportation and reduce air pollution. According to the law, revenues from congestion charges should be destined exclusively to urban infrastructure for public transportation and non-motorized modes of locomotion (such as walking
Walking (also known as ambulation) is one of the main gaits of terrestrial locomotion among legged animals. Walking is typically slower than running and other gaits. Walking is defined by an 'inverted pendulum' gait in which the body vaults o ...
and cycling
Cycling, also, when on a two-wheeled bicycle, called bicycling or biking, is the use of cycles for transport, recreation, exercise or sport. People engaged in cycling are referred to as "cyclists", "bicyclists", or "bikers". Apart from t ...
), and to finance public subsidies to transit fares. The law went into effect in April 2013.
In April 2012, one of the committees of the São Paulo
São Paulo (, ; Portuguese for 'Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaWC a ...
city council
A municipal council is the legislative body of a municipality or local government area. Depending on the location and classification of the municipality it may be known as a city council, town council, town board, community council, rural counc ...
approved a bill to introduce congestion pricing within the same area as the existing road space rationing
Road space rationing, also known as alternate-day travel, driving restriction and no-drive days ( es, restricción vehicular; pt, rodízio veicular; french: circulation alternée), is a travel demand management strategy aimed to reduce the ne ...
( pt, Rodízio veicular) by the last digit of the license plate, which has been in force 1996. The proposed charge is R$4 (~ ) per day and it is expected to reduce traffic by 30% and raise about R$2.5 billion (~ billion) per year, most of which will be destined to the expansion of the São Paulo Metro
The São Paulo Metro ( pt, Metrô de São Paulo, ), commonly called the ''Metrô'' () is one of the urban railways that serves the city of São Paulo, alongside the São Paulo Metropolitan Trains Company (CPTM), forming the largest metropolit ...
system and bus corridors. The bill still needs approval by two other committees before going for a final vote at the city council. Since 1995, 11 bills have been presented in the city council to introduce congestion pricing.
Opinion surveys have shown that the initiative is highly impopular. A survey by Veja Veja may refer to :
Places
* Veja, a town in Lazio, central Italy; now Vejano comune
* Veja, a village in Stănița Commune, Neamț County, Romania
* Veja River, Romania
* Veja State, a former princely state in present Gujarat, western India
Perso ...
magazine found that 80% of drivers are against congestion pricing, and another survey by Exame
''Exame''
is a fortnightly magazine specializing in economics, business, politics and technology published by Editora Abril, in São Paulo, Brazil. It reports news, reviews and tips about business, sales, investments, economics, environment, techn ...
magazine found that only 1% of São Paulo's residents support the initiative, while 30% find that extending the metro system is a better solution to reduce traffic congestion. São Paulo's strategic urban development plan "SP 2040", approved in November 2012, proposes the implementation of congestion pricing by 2025, when the density of metro and bus corridors is expected to reach 1.25 km/km2. The Plan also requires ample consultation and even a referendum
A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
before beginning implementation.
Urban corridors and toll rings
Congestion pricing has also been implemented in urban freeways. Between 2004 and 2005, Santiago de Chile
Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whose ...
implemented the first 100% non-stop urban toll for a freeway passing through a downtown area, charging by the distance traveled. Congestion pricing has been used since 2007 during rush hours in order to maintain reasonable speeds within the city core.
Norway
Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...
pioneered the implementation of electronic urban tolling in the main corridors of Norway's three major cities: Bergen
Bergen (), historically Bjørgvin, is a city and municipality in Vestland county on the west coast of Norway. , its population is roughly 285,900. Bergen is the second-largest city in Norway. The municipality covers and is on the peninsula o ...
(1986), Oslo
Oslo ( , , or ; sma, Oslove) is the capital and most populous city of Norway. It constitutes both a county and a municipality. The municipality of Oslo had a population of in 2022, while the city's greater urban area had a population of ...
(1990), and Trondheim
Trondheim ( , , ; sma, Tråante), historically Kaupangen, Nidaros and Trondhjem (), is a city and municipality in Trøndelag county, Norway. As of 2020, it had a population of 205,332, was the third most populous municipality in Norway, and ...
(1991). In Bergen cars can only enter the central area using a toll road, so that the effect is similar to a congestion charge. Though initially intended only to raise revenues to finance road infrastructure, the urban toll ring at Oslo created an unintended congestion pricing effect, as traffic decreased by around 5%. The Trondheim Toll Scheme also has congestion pricing effects, as charges vary by time of day. The Norwegian authorities pursued authorization to implement congestion charges in cities, and legislation was approved by Parliament in 2001. In October 2011 the Norwegian government announced the introduction of rules allowing congestion charging in cities. The measure is intended to cut greenhouse gas and air pollutant emissions, and relief traffic congestion. , Norwegian authorities have implemented urban charging schemes that operates both on the motorways and for access into downtown areas in five additional cities or municipalities: Haugesund
Haugesund () is a municipality on the North Sea in Rogaland county, Norway. While the population is greater in the neighboring Karmøy municipality, the main commercial and economic centre of the Haugaland region in northern Rogaland and southern ...
, Kristiansand
Kristiansand is a seaside resort city and municipality in Agder county, Norway. The city is the fifth-largest and the municipality the sixth-largest in Norway, with a population of around 112,000 as of January 2020, following the incorporation ...
, Namsos
( sma, Nåavmesjenjaelmie) is a municipality in Trøndelag county, Norway. It is part of the Namdalen region. The administrative centre of the municipality is the town of Namsos. Some of the villages in the municipality include Bangsund, Kl ...
, Stavanger
Stavanger (, , American English, US usually , ) is a city and municipalities of Norway, municipality in Norway. It is the fourth largest city and third largest metropolitan area in Norway (through conurbation with neighboring Sandnes) and the a ...
, and Tønsberg
Tønsberg , historically Tunsberg, is a city and municipality in Vestfold og Telemark county, eastern Norway, located around south-southwest of Oslo on the western coast of the Oslofjord near its mouth onto the Skagerrak. The administrative ce ...
.
The Norwegian electronic toll collection system is called AutoPASS
Autopass (stylized autoPASS) is an electronic toll collection system used in Norway. It allows collecting road tolls automatically from cars. It uses electronic radio transmitters and receivers operating at 5.8 GHz (MD5885) originally supp ...
and is part of the joint venture EasyGo
EasyGo is a joint venture between Norway, Sweden, Denmark and Austria, that enables use of a single electronic toll tag on toll roads, ferries and bridges in all the member countries. The purpose of EasyGo is to enable the use of one OBE for pay ...
.
Single facilities
Urban
Congestion pricing has also been applied to specific roadways. The first of this kind of specific schemes allowed users of low or single-occupancy vehicles to use a high-occupancy vehicle lane
A high-occupancy vehicle lane (also known as an HOV lane, carpool lane, diamond lane, 2+ lane, and transit lane or T2 or T3 lanes) is a restricted traffic lane reserved for the exclusive use of vehicles with a driver and one or more passengers, i ...
s (HOV) if they pay a toll. This scheme is known as high-occupancy toll lanes (HOT) lanes, and it has been introduced mainly in the United States and Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
. The first practical implementations was California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
's private toll 91 Express Lanes
State Route 91 (SR 91) is a major east–west state highway in the U.S. state of California that serves several regions of the Greater Los Angeles urban area. A freeway throughout its entire length, it officially runs from Vermont Avenue ...
, in Orange County
Orange County most commonly refers to:
*Orange County, California, part of the Los Angeles metropolitan area
Orange County may also refer to:
U.S. counties
*Orange County, Florida, containing Orlando
*Orange County, Indiana
*Orange County, New ...
in 1995, followed in 1996 by Interstate 15
Interstate 15 (I-15) is a major Interstate Highway System, Interstate Highway in the western United States, running through Southern California and the Intermountain West. I-15 begins near the Mexico–United States border, Mexican border i ...
in San Diego
San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the List of United States cities by population, eigh ...
. There has been controversy over this concept, and HOT schemes have been called "Lexus
is the luxury vehicle division of the Japanese automaker Toyota. The Lexus brand is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese ...
" lanes, as critics see this new pricing scheme as a perk to the rich. According to the Texas A&M Transportation Institute
The Texas A&M Transportation Institute (TTI) in Bryan/College Station, Texas is a transportation research agency in the United States. The institute was created in 1950, primarily in response to the needs of the Texas Highway Department (now th ...
, by 2012 there were in the United States 722 corridor-miles of HOV lanes, 294 corridor-miles of HOT/Express lanes and 163 corridor-miles of HOT/Express lanes under construction.
Congestion pricing in the form of variable tolls by time-of-the-day have also been implemented in bridges and tunnels providing access to the central business district
A central business district (CBD) is the commercial and business centre of a city. It contains commercial space and offices, and in larger cities will often be described as a financial district. Geographically, it often coincides with the "city ...
s of several major cities. In most cases there was a toll already in existence. Dynamic pricing
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a pricing strategy in which businesses set flexible prices for products or services based on current market demands. Businesses are able to change pric ...
is relatively rare compared to variable pricing. One example of dynamic tolling is the Custis Memorial Parkway
Interstate 66 (I-66) is an east–west Interstate Highway in the eastern United States. It runs from an interchange with I-81 near Middletown, Virginia, on its western end to an interchange with U.S. Route 29 (US 29) in Washing ...
in the Washington, D.C. metro area, where at times of severe congestion tolls can reach almost .
In March 2001, the Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey, PANYNJ; stylized, in logo since 2020, as Port Authority NY NJ, is a joint venture between the U.S. states of New York and New Jersey, established in 1921 through an interstate compact authorized ...
implemented a discount on regular toll fees during off-peak hours for those vehicles paying electronically with an EZ Pass issued in New York State. These discount toll was implemented at several tunnels and bridges connecting New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
and New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
, including the George Washington Bridge
The George Washington Bridge is a double-decked suspension bridge spanning the Hudson River, connecting Fort Lee, New Jersey, with Manhattan in New York City. The bridge is named after George Washington, the first president of the United St ...
, Lincoln Tunnel
The Lincoln Tunnel is an approximately tunnel under the Hudson River, connecting Weehawken, New Jersey, to the west with Midtown Manhattan in New York City to the east. It carries New Jersey Route 495 on the New Jersey side and unsigned New Y ...
, and Holland Tunnel
The Holland Tunnel is a vehicular tunnel under the Hudson River that connects the New York City neighborhood of Hudson Square in Lower Manhattan to the east with Jersey City in New Jersey to the west. The tunnel is operated by the Port Author ...
, and at some other bridges administrated by PANYNJ
The Port Authority of New York and New Jersey, PANYNJ; stylized, in logo since 2020, as Port Authority NY NJ, is a joint venture between the U.S. states of New York and New Jersey, established in 1921 through an interstate compact authorized ...
. Since March 2008, qualified low-emission automobiles with a fuel economy of at least 45 miles per gallon are eligible to receive a Port Authority Green Pass, which allows for a 50% discount during off-peak hours as compared to the regular full toll.
In January 2009, variable tolls were implemented at Sydney Harbour Bridge
The Sydney Harbour Bridge is a steel through arch bridge in Sydney, spanning Port Jackson, Sydney Harbour from the Sydney central business district, central business district (CBD) to the North Shore (Sydney), North Shore. The view of the bridg ...
, two weeks after upgrading to 100% free-flow electronic toll collection. The highest fees are charged during the morning and afternoon peak periods; a toll 25% lower applies for the shoulder periods; and a toll lower than the previously existing is charged at nights, weekends, and public holidays. This is Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
's first road congestion pricing scheme, and has had only a very minor effect on traffic levels, reducing them by 0.19%.
In July 2010 congestion tolls were implemented at the San Francisco-Oakland Bay Bridge. The Bay Bridge congestion pricing scheme charges a toll from 5 a.m. to 10 a.m. and 3 p.m. to 7 p.m., Monday through Friday. During weekends cars pay . The toll remained at the previous toll of at all other times on weekdays. According to the Bay Area Toll Authority
The Bay Area Toll Authority (BATA) is a state agency created by the California State Legislature in 1997 to administer the auto tolls on the San Francisco Bay Area's seven state-owned toll bridges. On January 1, 1998, the Metropolitan Transporta ...
fewer users are driving during the peak hours and more vehicles are crossing the Bay Bridge before and after the 5–10 a.m. period in which the congestion toll goes into effect. The agency also reported that commute delays in the first six months have dropped by an average of 15 percent compared with 2009. When the congestion tolls were proposed, the agency expected the scheme to produce a 20 to 30 percent drop in commute traffic.
Non-urban
Autoroute A1 in Northern France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
is one of the few cases of congestion pricing implemented outside of urban areas. This is an expressway connecting Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
to Lille
Lille ( , ; nl, Rijsel ; pcd, Lile; vls, Rysel) is a city in the northern part of France, in French Flanders. On the river Deûle, near France's border with Belgium, it is the capital of the Hauts-de-France Regions of France, region, the Pref ...
, and since 1992 congestion prices have been applied during weekends with the objective of spreading demand on the trip back to Paris on Sunday afternoons and evenings.
Research
Measurement of effects
In a road network, congestion can be considered a specific measure of the time delay in a journey or time lost through traffic jam
Traffic congestion is a condition in transport that is characterized by slower speeds, longer trip times, and increased vehicular queueing. Traffic congestion on urban road networks has increased substantially since the 1950s. When traffic de ...
s. Delays can be caused by some combination of traffic density, road capacity, and the delaying effects of other road users and traffic management schemes such as traffic lights, junctions, and street works. This can be measured as the extra journey time needed to traverse a congested route when compared to the same route with no such interference. However, this technical definition of congestion as a measurement of delay can get confused and used interchangeably with traffic density in the public mind.
To measure the true effects of any traffic management scheme it is normally necessary to establish a baseline, or "do nothing" case, which estimates the effects on the network without any changes other than normal trends and expected local changes. Notably this was not done for the London Congestion Charging Scheme, which has led to claims that it is not possible to determine the extent of the actual influence of the scheme. Regardless of the scheme's impact, in a retrospective analysis Transport for London (TfL) estimated there would have already been a significant reduction in traffic as a consequence of parking policies and increased congestion due to traffic management and other interventions that had the effect of reducing highway capacity. In 2006, the last year before the zone was expanded, TfL observed that traffic flows were lower than in any recent year, while network traffic speeds were also lower than in any recent year.
In 2013, ten years since its implementation, TfL reported that the congestion charging scheme resulted in a 10% reduction in traffic volumes from baseline conditions, and an overall reduction of 11% in vehicle kilometres in London between 2000 and 2012. Despite these gains, traffic speeds have also been getting progressively slower over the past decade, particularly in central London. TfL explains that the historic decline in traffic speeds is most likely due to interventions that have reduced the effective capacity of the road network in order to improve the urban environment, increase road safety and prioritise public transport, pedestrian and cycle traffic, as well as an increase in road works by utilities and general development activity since 2006. TfL concludes that while levels of congestion in central London are close to pre-charging levels, the effectiveness of the congestion charge in reducing traffic volumes means that conditions would be worse without the Congestion Charging scheme.[ ''See pp. 12: Traffic volume, speed and congestion.'']
Academic debate and concerns
Even the transport economists who advocate congestion pricing have anticipated several practical limitations, concerns and controversial issues regarding the actual implementation of this policy. As summarized by Cervero:
"''True social-cost pricing of metropolitan travel has proven to be a theoretical ideal that so far has eluded real-world implementation. The primary obstacle is that except for professors of transportation economics and a cadre of vocal environmentalists, few people are in favor of considerably higher charges for peak-period travel. Middle-class motorists often complain they already pay too much in gasoline taxes and registration fees to drive their cars, and that to pay more during congested periods would add insult to injury. In the United States, few politicians are willing to champion the cause of congestion pricing for fear of reprisal from their constituents. Critics also argue that charging more to drive is elitist policy, pricing the poor off of roads so that the wealthy can move about unencumbered. It is for all these reasons that peak-period pricing remains a pipe dream in the minds of many''."
Both Button and Small et al., have identified the following issues:
* The real-world demand functions for urban road travel are more complex than the theoretical functions used in transport economics analysis. Congestion pricing was developed as a first-best solution, based on the assumption that the optimal price of road space equals the marginal cost price if all other goods in the economy are also marginal cost priced. In the real world this is not true, thus, actual implementation of congestion pricing is just a proxy or second-best solution. Based on the economic principles behind congestion pricing, the optimal congestion charge should make up for the difference between the average cost paid by the driver and the marginal cost imposed on other drivers (such as extra delay) and on society as a whole (such as air pollution). The practical challenge of setting optimal link-based tolls is daunting given that neither the demand functions nor the link-specific speed-flow curves can be known precisely. Therefore, transport economists recognize that in practice setting the right price for the congestion charge becomes a trial and error experience.
* Inequality issue: A main concern is the possibility of undesirable distribution repercussions because of the diversity of road users. The use of the tolled road depends on the user's level of income. Where some cannot afford to pay the congestion charge, then this policy is likely to privilege the middle-class and rich. The users who shift to some less-preferred alternative are also worse off. The less wealthy are the more likely to switch to public transit. Road space rationing
Road space rationing, also known as alternate-day travel, driving restriction and no-drive days ( es, restricción vehicular; pt, rodízio veicular; french: circulation alternée), is a travel demand management strategy aimed to reduce the ne ...
is another strategy generally viewed as more equitable than congestion pricing. However, high-income users can always avoid the travel restrictions by owning a second car and users with relatively inelastic demand (such as a worker who needs to transport tools to a job site) are relatively more impacted.
* There are difficulties in deciding how to allocate the revenues raised. This is a controversial issue among scholars. The revenues can be used to improve public transport (as is the case in London), or to invest in new road infrastructure (as in Oslo). Some academics make the case that revenues should be disposed as a direct transfer payments to former road users. Congestion pricing is not intended to increase public revenues or to become just another tax, however this is precisely one of the main concerns of road users and taxpayers.
One alternative, aimed at avoiding inequality and revenue allocation issues, is to implement a rationing
Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular ...
of peak period travel through mobility rights or revenue-neutral credit-based congestion pricing. This system would be similar to the existing emissions trading
Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission t ...
of carbon credit
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit a set amount of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).
Carbon credits and carbon markets are a compo ...
. Metropolitan area or city residents, or the taxpayers, would be issued mobility rights or congestion credits, and would have the option of using these for themselves, or trading or selling them to anyone willing to continue traveling by automobile beyond their personal quota. This trading system would allow direct benefits to be accrued by those users shifting to public transportation or by those reducing their peak-hour travel rather than the government.
Public controversy
Experience from the few cities where congestion pricing has been implemented shows that social and political acceptability is key. Public discontent with congestion pricing, or rejection of congestion pricing proposals, is due mainly to the inequality issues, the economic burden on neighboring communities, the effect on retail businesses and the economic activity in general, and the fears that the revenues will become just another tax.
Congestion pricing remains highly controversial with the public both before and after implementation. This has in part been resolved through referendum
A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
s, such as after the seven-month trial period in Stockholm; however this creates a debate as to where the border line for the referendum should go, since it is often the people living outside the urban area who have to pay the tax, while the external benefit is granted to those who live within the area. In Stockholm there was a majority in the referendum within the city border (where the votes counted), but not outside.
Some concerns have also been expressed regarding the effects of cordon area congestion pricing on economic activity and land use, as the benefits are usually evaluated from the urban transportation perspective only. However, congestion pricing schemes have been used with the main objective of improving urban quality and to preserve historical heritage in the small cities.
The effects of a charge on business have been disputed; reports have shops and businesses being heavily impacted by the cost of the charge, both in terms of lost sales and increased delivery costs in London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, while others show that businesses were then supporting the charge six months after implementation. Reports show business activity within the charge zone had been higher in both productivity
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
and profitability
In economics, profit is the difference between the revenue that an economic entity has received from its outputs and the total cost of its inputs. It is equal to total revenue minus total cost, including both explicit and implicit costs.
It i ...
and that the charge had a "broadly neutral impact" on the London wide economy, while others claim an average drop in business of 25% following the 2007 extension.
Other criticism has been raised concerning the environmental effects on neighborhoods bordering the congestion zone, with critics claiming that congestion pricing would create "parking lots" and add more traffic and pollution to those neighborhoods, and the imposition of a regressive tax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high ...
on some commuters. Stockholm's trial of congestion pricing, however, showed a reduction in traffic in areas outside the congestion zone. Other opponents argue that the pricing could become a tax on middle- and lower-class residents, since those citizens would be affected the most financially. The installation of cameras for tracking purposes may also raise civil liberties concerns.
Effects
A 2019 study of congestion pricing in Stockholm between 2006 and 2010 found that in the absence of congestion pricing that Stockholm's air would have been five to 15 percent more polluted between 2006 and 2010", and that young children would have suffered substantially more asthma attacks. A 2020 study that analyzed driving restrictions in Beijing estimated that the implementation of congestion pricing would reduce total traffic, increase traffic speed, reduce pollution, reduce greenhouse gas emissions
Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and lar ...
, reduce traffic accidents, and increase tax revenues. A 2020 study of London found that congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of public goods that are subject to congestion through excess demand, such as through higher peak charges for use of bus services, electricity, metros, railways, tele ...
(introduced in 2003) led to reductions in pollution and reductions in driving, but it increased pollution from diesel vehicles (which were exempt from the congestion pricing). A 2021 study found that congestion pricing reduced emissions through downsizing commuting distances and housing sizes.
A 2013 study found that after congestion pricing was implemented in Seattle, drivers reported greater satisfaction with the routes covered by congestion pricing and reported lower stress.
A 2016 study found that more people used public transportation due to increases in congestion pricing in Singapore. A 2016 study found that real estate prices dropped by 19% within the cordoned-off areas of Singapore where congestion pricing was in place relative to the areas outside of the area.
Waterways
Panama Canal booking system and auction
The Panama Canal
The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit ...
had a limited capacity determined by operational times and cycles of the existing locks
Lock(s) may refer to:
Common meanings
*Lock and key, a mechanical device used to secure items of importance
*Lock (water navigation), a device for boats to transit between different levels of water, as in a canal
Arts and entertainment
* ''Lock ...
and further constrained by the current trend towards larger (close to Panamax
Panamax and New Panamax (or Neopanamax) are terms for the size limits for ships travelling through the Panama Canal. The limits and requirements are published by the Panama Canal Authority (ACP) in a publication titled "Vessel Requirements". ...
-sized) vessels transiting the canal
Canals or artificial waterways are waterways or engineered channels built for drainage management (e.g. flood control and irrigation) or for conveyancing water transport vehicles (e.g. water taxi). They carry free, calm surface flo ...
which take more transit time within the locks and navigational channels, and the need for permanent periodical maintenance works due to the aging canal, which forces periodical shutdowns of this waterway
A waterway is any navigable body of water. Broad distinctions are useful to avoid ambiguity, and disambiguation will be of varying importance depending on the nuance of the equivalent word in other languages. A first distinction is necessary b ...
. On the other hand, demand has been growing due to the rapid growth of international trade
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy)
In most countries, such trade represents a significant ...
. Also, many users require a guarantee of certain level of service. Despite the gains which have been made in efficiency, the Panama Canal Authority
The Panama Canal Authority ( es, Autoridad del Canal de Panamá (ACP)) is the agency of the government of Panama responsible for the operation and management of the Panama Canal. The ACP took over the administration of the canal from the Panama ...
(ACP) estimates that the canal will reach its maximum sustainable capacity between 2009 and 2012. The long-term solution for the congestion problems was the expansion of the canal through a new third set of locks. Work started in 2007 and the expanded canal enter commercial operation in June 2016. The new locks allow transit of larger, Post-Panamax
Panamax and New Panamax (or Neopanamax) are terms for the size limits for ships travelling through the Panama Canal. The limits and requirements are published by the Panama Canal Authority (ACP) in a publication titled "Vessel Requirements". ...
ships, which have a greater cargo capacity than the current locks are capable of handling.
Considering the high operational costs of the vessels (container ship
A container ship (also called boxship or spelled containership) is a cargo ship that carries all of its load in truck-size intermodal containers, in a technique called containerization. Container ships are a common means of commercial intermodal ...
s have daily operational costs of approximately ), the long queues that occur during the high season (sometimes up to a week's delay), and the high value of some of the cargo transported through the canal, the ACP implemented a congestion pricing scheme to allow a better management of the scarce capacity available and to increase the level of service offered to the shipping companies. The scheme gave users two choices: (1) transit by order of arrival on a first-come first-served basis, as the canal historically has operated or (2) booked service for a fee—a congestion charge.
The booked service allowed two options of fees. The Transit Booking System, available online, allowing customers who do not want to wait in queue to pay an additional 15% over the regular tolls, guaranteeing a specific day for transit and crossing the canal in 18 hours or less. ACP sells 24 of these daily slots up to 365 days in advance. The second choice was high priority transit. Since 2006, ACP has available a 25th slot, sold through the Transit Slot Auction to the highest bidder. The main customers of the Transit Booking System are cruise ship
Cruise ships are large passenger ships used mainly for vacationing. Unlike ocean liners, which are used for transport, cruise ships typically embark on round-trip voyages to various ports-of-call, where passengers may go on tours known as "s ...
s, container ship
A container ship (also called boxship or spelled containership) is a cargo ship that carries all of its load in truck-size intermodal containers, in a technique called containerization. Container ships are a common means of commercial intermodal ...
s, vehicle carrier
Roll-on/roll-off (RORO or ro-ro) ships are cargo ships designed to carry wheeled cargo, such as cars, motorcycles, trucks, semi-trailer trucks, buses, trailers, and railroad cars, that are driven on and off the ship on their own wheels or using ...
s, and non-containerized cargo vessels.
The highest toll for high priority passage paid through the Transit Slot Auction was charged on a tanker in August 2006, bypassing a 90-ship queue awaiting the end of maintenance works on the Gatun locks, thus avoiding a seven-day delay. The normal fee would have been just . The average regular toll is around .
Airports
Many airport
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consists of a landing area, which comprises an aerially accessible open space including at least one operationally active surfa ...
s are facing extreme congestion, runway
According to the International Civil Aviation Organization (ICAO), a runway is a "defined rectangular area on a land aerodrome prepared for the landing and takeoff of aircraft". Runways may be a man-made surface (often asphalt concrete, as ...
capacity being the scarcest resource. Congestion pricing schemes have been proposed to mitigate this problem, including slot auctions, such as with the Panama Canal, but implementation has been piecemeal. The first scheme was started in 1968 when higher landing fees for peak-hour use by aircraft with 25 seats or less at Newark
Newark most commonly refers to:
* Newark, New Jersey, city in the United States
* Newark Liberty International Airport, New Jersey; a major air hub in the New York metropolitan area
Newark may also refer to:
Places Canada
* Niagara-on-the ...
, Kennedy, and LaGuardia
LaGuardia Airport is a civil airport in East Elmhurst, Queens, New York City. Covering , the facility was established in 1929 and began operating as a public airport in 1939. It is named after former New York City mayor Fiorello La Guardia. ...
airports in New York City. As a result of the higher charges, general aviation
General aviation (GA) is defined by the International Civil Aviation Organization (ICAO) as all civil aviation aircraft operations with the exception of commercial air transport or aerial work, which is defined as specialized aviation services ...
activity during peak periods decreased by 30%. These fees were applied until deregulation of the industry, but higher fees for general aviation were kept to discourage this type of operations at New York's busiest airports. In 1988 a higher landing fee for smaller aircraft at Boston's Logan Airport was adopted; with this measure much of the general aviation abandoned Logan for secondary airports. In both US cases the pricing scheme was challenged in court. In the case of Boston, the judge ruled in favor of general aviation users due to lack of alternative airports. In the case of New York, the judge dismissed the case because "the fee was a justified means of relieving congestion".
Congestion pricing has also been implemented for scheduled airline services. The British Airports Authority
Heathrow Airport Holdings is the United Kingdom-based operator of Heathrow Airport. The company also operated Gatwick Airport, Stansted Airport, Edinburgh Airport and several other UK airports, but was forced by the Competition Commission to se ...
(BAA) has been a pioneer in implementing congestion pricing for all types of commercial aviation
Commercial aviation is the part of civil aviation that involves operating aircraft for remuneration or hire, as opposed to private aviation.
Definition
Commercial aviation is not a rigorously defined category. All commercial air transport and ae ...
. In 1972 implemented the first peak pricing policy, with surcharges varying depending on the season and time of the day, and by 1976 raised these peak charges. London-Heathrow had seven pricing structures between 1976 and 1984. In this case it was the US carriers that went to international arbitration in 1988 and won their case.
In 1991, the Athens Airport
Athens International Airport ''Eleftherios Venizelos'' ( el, Διεθνής Αερολιμένας Αθηνών «Ελευθέριος Βενιζέλος», ''Diethnís Aeroliménas Athinón "Elefthérios Venizélos"''), commonly initialised as ...
charged a 25% higher landing fee for those aircraft arriving between 11:00 and 17:00 during the high tourism season during summer. Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
charges an additional flat fee to the basic weight charge. In 1991–92 peak pricing at London's main airports Heathrow
Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others bei ...
, Gatwick
Gatwick Airport (), also known as London Gatwick , is a major international airport near Crawley, West Sussex, England, south of Central London. In 2021, Gatwick was the third-busiest airport by total passenger traffic in the UK, after H ...
and Stansted
London Stansted Airport is a tertiary international airport serving London, England, United Kingdom. It is located near Stansted Mountfitchet, Essex, England, northeast of Central London.
London Stansted serves over 160 destinations acro ...
was implemented; airlines were charged different landing fees for peak and off-peak operations depending on the weight of aircraft. For example, in the case of a Boeing 757
The Boeing 757 is an American narrow-body airliner designed and built by Boeing Commercial Airplanes.
The then-named 7N7, a twinjet successor for the 727 (a trijet), received its first orders in August 1978.
The prototype completed its mai ...
, the peak landing fee was about 2.5 times higher than the off-peak fee in all three airports. For a Boeing 747
The Boeing 747 is a large, long-range wide-body airliner designed and manufactured by Boeing Commercial Airplanes in the United States between 1968 and 2022.
After introducing the 707 in October 1958, Pan Am wanted a jet times its size, t ...
the differential was even higher, as the old 747 carries a higher noise charge.[ ''See Table 6.3''] Though related to runway congestion, the main objective of these peak charges at the major British airports was to raise revenue for investment.
See also
* Automobile costs
The car internal costs are all the costs consumers pay to own and operate a car. Normally these expenditures are divided by fixed or standing costs and variable or running costs. Fixed costs are those ones which do not depend on the distance tr ...
* Electricity pricing
Electricity pricing (also referred to as electricity tariffs or the price of electricity) can vary widely by country or by locality within a country. Electricity prices are dependent on many factors, such as the price of power generation, gover ...
* Low-emission zone
A low-emission zone (LEZ) is a defined area where access by some polluting vehicles is restricted or deterred with the aim of improving air quality. This may favour vehicles such as bicycles, micromobility vehicles, (certain) alternative fuel veh ...
* Energy demand management
Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education.
Us ...
(congestion pricing applied to electric utilities)
* GNSS road pricing
GNSS road pricing or GNSS-based tolling is the charging of road users using Global Navigation Satellite System (GNSS) sensors inside vehicles. Road pricing using GNSS simplifies distance-based tolling for all types of roads in a tolled road netwo ...
* Pareto efficiency
Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engine ...
* Road pricing
Road pricing (also road user charges) are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage the use of certain classes of vehicle, fuel sour ...
* Road space rationing
Road space rationing, also known as alternate-day travel, driving restriction and no-drive days ( es, restricción vehicular; pt, rodízio veicular; french: circulation alternée), is a travel demand management strategy aimed to reduce the ne ...
* Tragedy of the commons
Tragedy (from the grc-gre, τραγῳδία, ''tragōidia'', ''tragōidia'') is a genre of drama based on human suffering and, mainly, the terrible or sorrowful events that befall a main character. Traditionally, the intention of tragedy ...
* Transport economics
Transport economics is a branch of economics founded in 1959 by American economist John R. Meyer that deals with the allocation of resources within the transport sector. It has strong links to civil engineering. Transport economics differs from ...
* Transportation demand management
* Variable pricing
Variable pricing is a pricing strategy for products. Traditional examples include auctions, stock markets, foreign exchange markets, bargaining, electricity, and discounts. More recent examples, driven in part by reduced transaction costs ...
* Vehicle miles traveled tax
* Water pricing
References
Bibliography
* (See Chapter 9: Optimizing Traffic Congestion)
*
* (See Chapter 6: The Master-Planned Transit Metropolis: Singapore)
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* (See Chapter 4: Pricing and 4-3: Congestion Pricing in Practice)
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External links
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{{DEFAULTSORT:Congestion Pricing
Electronic toll collection
Intelligent transportation systems
Pricing
Road traffic management
Transport economics
Transportation planning
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