Table of Contents

Road Congestion Pricing in Europe

Road Congestion Pricing in Europe

Implications for the United States

Edited by Harry W. Richardson and Chang-Hee Christine Bae

In February 2003, the London Congestion Charging Scheme was introduced and in 2006 a similar policy was introduced in Stockholm. In both cases automobile traffic entering the cordon declined by about 20 percent. This book evaluates these and other similar programs exploring their implications for the United States. This study’s value lies in the fact that it examines road pricing in the real world and not simply from a theoretical viewpoint. As a comparative study it will appeal to both policymakers and academics in transportation economics and planning, urban economics, planning and economic geography.

Chapter 8: The London Congestion Charging Scheme, 2003–2006

Georgina Santos

Subjects: economics and finance, transport, environment, transport, urban and regional studies, transport


Georgina Santos* 1 INTRODUCTION In this chapter the London Congestion Charging Scheme (LCCS) is assessed. A brief overview of how the scheme works is given in Section 2 and a summary of its impacts on traffic in Section 3. With information and data from Transport for London demand elasticities are estimated in Section 4 and the area marginal congestion costs in Section 5. Finally, a description and potential impacts of the Western Extension are presented in Section 6. Section 7 concludes. 2 HOW THE LONDON CONGESTION CHARGING SCHEME WORKS The LCCS, designed and managed by Transport for London (TfL), was implemented on 17 February 2003 and is essentially an area licensing scheme. It was designed and managed by Transport for London (TfL), and is essentially an area licensing scheme. All vehicles entering, leaving, driving or parking on a public road inside the zone between 7:00 am and 6:30 pm Monday to Friday, excluding public holidays, must pay a congestion charge. This was initially £5, but on 4 July 2005 it was increased to £8. Traffic signs make it clear where the limits of the charging zone are. Figure 8.1 shows the limit of the area, the inner ring road, which runs along Euston Road, Pentonville Road, City Road, Old Street, Commercial Street, Tower Bridge Road, New Kent Road, Kennington Lane, Vauxhall Bridge Road, Park Lane, Edgware Road and Marylebone Road. No charge is made for driving on the inner ring road itself. The charging area is...

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