London Congestion Fee

London Congestion Fee

By: Ben Wu, Grace Ngau

What is the problem?

Clogged up roads, threatens businesses.

London suffered the worst traffic congestion among Europe.

Drivers in central London spent 50% of their time in queues

Morning, the equivalent of 25 busy motorway lanes of traffic tried to enter central London

London lost between £2-4 million every week in terms of lost time caused by congestion

Background info

What is congestion charge? The Mayor's election proposal

included a pledge to tackle congestion.

the scheme was fine-tuned in order to meet demand.

In February 2002 February 2003. In February 2007

How does it work?

a £8 daily Congestion Charge. Aims no tollbooths or barriers around

the congestion charging zone. Many ways of paying Exceptions Penalty Charge

Does it internalize the externality?

YESSSSSSSSSS! Evidence:

– Traffic entering the original charging zone remains 21 per cent lower

– Traffic entering the Western Extension has fallen by 14 per cent

– There has been a six per cent increase in bus passengers during charging hours

– There has been a 12 per cent increase in cycle journeys into the Western Extension.

– £137m being raised, in the financial year 2007/08

Doesn’t work all the time

London Congestion Charge Report

London Congestion Charge Report

So has the charge achieved its aims?

YES– Levels of traffic in London have

fallen sharply at a time when overall car ownership is rising

– More people are now using environmentally-friendly transport such as buses and Tube trains

– Traffic congestion in central London is not as bad as it was a decade ago

So has the charge achieved its aims?

NO– Business leaders say that the

congestion charge has adversely affected the takings of retailers

– The capital's streets have not been transformed – despite the reduction in traffic jams

– Not as much as cash has been raised from the congestion charge as was originally hoped

MODEL

Bibliography

http://en.wikipedia.org/wiki/London_congestion_charge http://www.citymayors.com/report/congestion_charge.html http://www.bbc.co.uk/london/travel/congestion/ http://www.london.gov.uk/mayor/congest/ http://www.tfl.gov.uk/roadusers/congestioncharging/

default.aspx http://www.independent.co.uk/news/uk/home-news/the-big-

question-has-the-congestion-charge-been-effective-in-reducing-londons-traffic-781505.html

http://www.tfl.gov.uk/roadusers/congestioncharging/