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 17: The US Context for Highway Congestion Pricing

Bumsoo Lee and Peter Gordon

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

Extract

Bumsoo Lee and Peter Gordon 1 INTRODUCTION If price does not ration, something else will. We also know that auto ownership and use respond to rising income and that congestion has become the default rationing mechanism on most of the world’s roads and highways. Economists and others have pointed out that this is increasingly wasteful and have argued that time-of-day pricing should be implemented (see, for example, the recent collection of essays edited by Roth, 2006). Modern monitoring and collection technologies suggest that this can now be done at low cost – although that assertion is challenged in a recent examination of the Stockholm road pricing trial, by Prud’homme and Kopp (2006). Policy makers in the US, however, have for the most part been reluctant to go along, fearing the prospect (or the appearance) of regressive impacts – even though they are thereby forgoing a new and considerable revenue source. In Chapter 19 of this volume, King et al. argue that improved revenue targeting and sharing schemes could develop greater political support. The world’s best-known experiments with road pricing have been the area-pricing programs in Singapore (since 1975)1 and London (since 2004). On a smaller scale, there have been scattered cases around various cities of the developed countries with moderately scaled pricing experiments on specific areas or on specific stretches of highways. Recently, some writers have suggested that the US is now near a tippingpoint, and that many more road pricing projects will soon be implemented (Poole and Orski,...

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