PUBP 715
Ben Thielen, Lin Ning, Brian Elson
CONGESTION PRICING
London adopted Congestion Pricing under Mayor Ken Livingston in 2003. With exceptions for taxis, buses, alternative-fuel cars, and emergence vehicles, motorists entering London’s charging zone had to pay £5. This charge entitles a motorist unlimited travel within the charging zone for a day. The approximately 300,000 motorists residing within the area affected are entitled to a discount of up to 90% of the toll. The toll is applicable in the charging zone from Monday – Friday, 7 AM to 6:30 PM.
*Photo from http://www.ibabuzz.com/transportation/wp-content/uploads/2007/02/london-congestion-charging-zone.jpg
The congestion charge was implemented because of the need to address London’s chronically clogged streets. Access magazine declares, “Livingstone’s ability to realize his vision of Greater London as the world’s leading city for businesses and residents rests on his ability to keep the city moving.” Traffic had become so bad in London that Ken Livingston implemented this congestion charging system, despite the potential political opposition that such a toll might create. According to an article in the Journal of Economic Perspectives, “By the 1990s, the average speed of trips across London was below that at the beginning of the twentieth century—before the car was introduced. Traffic speeds in central London had fallen more than 20 percent since the 1960s, from an average 12.7 mph for the morning peak period in 1968 (and a high of 14.2 mph in 1975) to 10 mph in 1998.” Similarly, the Wall Street Journal notes “The average city driver spent 3 ½ minutes sitting still or driving slowly for every mile they traveled. Buses going through the city averaged 6.8 miles per hour, a similar pace to the horse and buggies used in London 100 years ago.”
*Photo from http://www.milesfaster.co.uk/images/images9/london-congestion-zone.gif
Enforcement of the tolls is done through the use of over two hundred closed circuit televisions (CCTV), placed throughout the congestion zone. These cameras have an accuracy rate exceeding 80%. Technology is used to compare the photos of the license plates to and the vehicle registration numbers. “At the end of each day, the numbers captured are compared to the database of paid or exempt vehicle registrations. If a match is made, the images and vehicle details are removed from the database. If no match is made, the numbers are sent to the Driver and Vehicle Licensing Agency…” (Journal of Economic Perspectives) Driving in the charging zone without paying the toll can result in a fine of up to £150. To avoid the potential of getting fined, drivers can “pay the [congestion] charge at convenience stores, by phone, by sending a text message from their cell phones, or on the Internet. Commuters can pay by the year.” (New York Times)
*Photo from: http://mao.typepad.com/photos/uncategorized/2007/07/02/congestionsign.jpg
The majority of Londoners support the congestion charge system. Mayor Livingston implemented the charge following “an 18-month period of extensive public consultation,” a potentially “critical factor in making the scheme publicly acceptable.” (Journal of Economic Perspectives) Since the charge was implemented in 2003, the toll has increased to £8 per day. Additionally, the zone has been extended to include the wealthy neighborhoods of Kensington and Chelsea, prompting some protests. An article appearing in the Wall Street Journal notes “A government survey found that 72% of residents in the new zone area opposed the idea. On the first day of the expansion, people protested by driving their cars, slowly, around the border of the zone.” This opposition is in contrast to the approximate 60% of Londoners who support congestion charging. Additionally, Ken Livingston “was easily re-elected over a Conservative, Steven Norris, who promised to scrap the charge.”
*Photo from Economist
Politics aside, the congestion charge has had a noticeable effect in
London.
Traffic has decreased and use of public transportation has increased.
Governing magazine notes “Many people used to drive to work switched to mass transit, which became a more attractive option because Livingston pumped toll revenues into expanded bus service….Traffic moves more quickly, there are fewer accidents, and taxis and buses are more plentiful.”
Cities in countries throughout the world are looking at congestion pricing and London’s experience to help reduce traffic and speed travel times. Stockholm has experienced with congestion pricing, with favorable results. The system used in Stockholm, however, has a considerable difference from the charging system used in London. The Wall Street Journal reports that “Unlike most other traffic-control plans in cities such as London and Rome, Stockholm used a dynamic pricing system in which drivers were charged different amounts depending on the time of day.”
Cities and regions in the United States are also looking to congestion pricing to ease congestion.
*Photo from Wall Street Journal
Virginia is looking to High-Occupancy Toll (HOT) lanes to reduce congestion on I-495 and I-95. These tolls would vary according to demand, with a trip during rush-hour costing much more than a trip during non-peak hours. Such a system is already being used on the 91 Freeway linking Orange and Riverside counties in Southern California. Additionally, Mayor Michael Bloomberg has sought an ambitious congestion charge on cars entering New York City. Bloomberg’s plan would have an “$8 fee for cars south of 86th Street in Manhattan between 6 a.m. and 6 p.m.” The Federal government has been supportive of local congestion pricing attempts. Tyler Duvall, Assistant Secretary for Policy at the US Department of Transportation said such a fee "is a lot cheaper than the way we're paying now ... with time, unreliability, psychological hell.” (Wall Street Journal)
READINGS
*Photo from http://www.milesfaster.co.uk/images/images9/london-congestion-zone.gif
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