Published on March 19, 2009
London Road Pricing Scheme Laura and Patrick
Market Failure in London! • Negative Externality: cost caused by production or consumption of a good to a third party • External costs of private transport in London: ▫ Detrimental air pollution (carbon dioxide emissions from cars) ▫ Heavy traffic in Central Area
Background Info • General ▫ Introduced in early 2003 ▫ First used in Central London Expanded to west London ▫ Was the largest of it’s kind when it was introduced Remains to be one of the largest in the world ▫ Still is frequently referenced in many towns’ bids to implement their own schemes
Background Info • Charge ▫ 8 pounds per day every time you go into the CCZ 7 pounds if you are part of a fleet of vehicles ▫ The charge is applicable between the hours of 6:00 in the morning to 7:00 at night ▫ Municipal vehicles, taxis, alternative fuel vehicles, and bicycles are exempt from the charge
Background Info • Operation and Fines ▫ CCTV cameras inside the CCZ record license plate numbers with 90% accuracy ▫ During the night computers cross reference the payees with their license plate numbers ▫ Those who have paid but have not been recorded will be refunded whereas those who have not paid but have been recorded will be fined
Background Info • Effects ▫ 20% decrease in traffic in the CCZ ▫ Harmful pollutants significantly curbed
Proposed Remedy • The proposed remedy was to… ▫ introduce a road pricing scheme to… ▫ decrease the number of drivers, therefore… ▫ decreasing congestion, noise, and pollution
Rationale Of Road Pricing • Road pricing: economic concept regarding direct charges applied to the use of roads ▫ Examples: fuel taxes, license fees, parking taxes, tolls and congestion charges • Two objectives: ▫ Revenue generation for road infrastructure ▫ Congestion pricing for demand management
Does Remedy Work? • According to Ken Livingstone, ex-mayor of London: The Congestion Charge is highly effective in decreasing traffic… ▫ Traffic levels + associated carbon dioxide levels have been cut ▫ Bus services have improved and roads are safer ▫ London’s air quality has improved thanks to reduced vehicle emissions ▫ Funds are invested back into transport system and used to encourage walking, cycling and greater use of public transport
Does Remedy Internalize Externalities? • Therefore, if he was telling the truth: ▫ The Congestion Charges cover the marginal social cost of urban traffic External costs of traffic are compensated with funding for better bus services and roads Funds can also be used to clean up air pollution
Does Remedy Internalize Externalities? • And… ▫ Road pricing decreases marginal private benefit Congestion Charges act as disincentive for consumers Demand of the demerit good is reduced to a more socially optimal level
Bibliography • http://news.bbc.co.uk/1/hi/uk/6382211.stm • http://en.wikipedia.org/wiki/Road_pricing#United_Kingdom • http://www.niches- transport.org/fileadmin/archive/Deliverables/D4.3b_5.8_b_PolicyNotes/14690_pn 13_pricing_ok_low.pdf • http://news.bbc.co.uk/2/hi/uk_news/politics/6678915.stm • http://www.notolls.org.uk/wlrafeb2007.pdf
The Congestion Charge is an £11.50 daily charge for driving a vehicle within the charging zone between 07:00 and 18:00, Monday to Friday. The easiest way ...
Die London congestion charge (englisch für Londoner Staugebühr) ist eine Innenstadtmaut, welche Kraftfahrer im Zentrum von London entrichten müssen.
You have to pay an £11.50 daily charge if you drive between 07:00 and 18:00, Monday to Friday in the Congestion Charge zone. There is no charge on ...
Transport for London. Sign-in bar Sign in. Pay the Congestion Charge.
The London congestion charge is a fee charged on most motor vehicles operating within the Congestion Charge Zone (CCZ) in Central London between 07:00 and ...
In London Unterwegs » Congestion Charge. Congestion Charge. Die Stadt London führte Anfang 2003 eine Innenstadtmaut ein. Man nannte diese Maut Congestion ...
Our complete guide to the Congestion Charge zone in Central London, including a Congestion Charge map and Congestion Charge times.
PLEASE NOTE - The Congestion Charge is applicable to central London only and does not include the Dartford Crossing Dart Charge.
Übersetzung für congestion charge im Englisch-Deutsch-Wörterbuch dict.cc.
hyde park kensington gardens green park st. james’s park regent’s park battersea park kennington park queens park holland park k e n s a l r o a d e l ...