Road pricing
Part of a series on |
Economics |
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Part of a series on |
Taxation |
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An aspect of fiscal policy |
Road pricing are
In most countries toll roads,
Many recent road pricing schemes have proved controversial, with a number of high-profile schemes in the US and the UK being cancelled, delayed, or scaled back in response to opposition and protest. The tendency seems to reverse, however, when the system is already in place, with the popularity of existing systems often increasing while merely discussed systems face an uphill battle in public opinion. A 2006 survey of the economic literature on the subject finds that most economists agree that some form of road pricing to reduce congestion is economically viable and overall beneficial, although there is disagreement on what form road pricing should take. Economists disagree over how to set tolls, how to cover common costs, and what to do with any "excess" revenues (i.e., Revenues that exceed direct costs of road construction and maintenance, but which may still not cover
Terminology
Road pricing is a general term that may be used for any system where the driver pays directly for use of a particular roadway or road network in a particular city, region, or nation. Road pricing also includes congestion charging, which are charges levied on qualifying road users to reduce peak demand, and thereby reduce traffic congestion[1][2][8][9][10][11] and also to place a charge on road users for other negative externalities, including traffic accidents, noise, air pollution, and greenhouse gas emissions.[3]
History
The first published reference to 'road pricing' was possibly in 1949 when the
In 1963 Vickery published a paper 'Pricing in urban and suburban transport' in the American Economic Review[16] and Gabriel Joseph Roth, John Michael Thomson of the Department of Applied Economics at the University of Cambridge published a short paper titled "Road pricing, a cure for congestion?"[17] The Smeed Report, 'Road Pricing: The Economic and Technical Possibilities', which had been commissioned in 1962 by the United Kingdom Ministry of Transport, was published in 1964.[18] Road pricing was then developed by Maurice Allais and Gabriel Roth in a paper titled "The Economics of Road User Charges" published by the World Bank in 1968.[19]
The first successful implementation of a congestion charge was with the
Impact
A study of congestion pricing in Stockholm between 2006 and 2010 found that in the absence of congestion pricing Stockholm's "air would have been five to ten percent more polluted between 2006 and 2010, and young children would have suffered 45 percent more asthma attacks".[21][22]
A 2013 study found that after congestion pricing was implemented in Seattle, drivers reported greater satisfaction with the routes covered by congestion pricing and reported lower stress.[23][24]
A 2016 study found that more people used public transportation due to the implementation of congestion pricing in Singapore.[25] A 2016 study found that real estate prices dropped by 19% within the cordoned-off areas of Singapore where congestion pricing was in place relative to the areas outside of the area.[26]
Research from 2019 provides a set of tools to enable analysis and measurement of the impacts of toll pricing, toll payment, toll collection technology, and other aspects of toll implementation and rate changes on low-income and minority populations.[27]
Example schemes
Asia-Pacific
Australia
In January 2009, variable tolls were implemented at Sydney Harbour Bridge, two weeks after upgrading to 100% free-flow electronic toll collection. The highest fees are charged during the morning and afternoon peak periods; a toll 25% lower applies for the shoulder periods; and a toll lower than the previously existing is charged at nights, weekends, and public holidays. This is Australia's first road congestion pricing scheme, and has had only a very minor effect on traffic levels, reducing them by 0.19%[28][29][30][31]
China
Main roadways and highways in Shanghai are tolled, and an assessment was completed to evaluate the implementation of congestion pricing for vehicles entering the
Congestion based pricing for Beijing was recommended by the World Bank in 2010[34][35] and local officials announced plans to introduce a scheme in September 2011 although no details about the cost or the charge zone have been provided.[36] The city is dealt with traffic congestion and air pollution through a driving restriction scheme implemented since the 2008 Summer Olympics.[37][38] As of June 2016[update], another 11 Chinese cities have similar restriction schemes in place.[39]
In early 2010 the city Guangzhou, Guangdong province, opened a public discussion on whether to introduce congestion charges. An online survey conducted by two local news outlets found that 84.4% of respondents opposed the charges.[35] The city of Nanjing is also considering the implementation of congestion pricing.[33]
In December 2015, the Beijing Municipal Commission of Transport announced plans to introduce congestion charges in 2016. According to the city's motor vehicle emission control plan 2013–2017, the congestion charge will be a real-time
Hong Kong
Hong Kong's Electronic Road Pricing system operated between 1983 and 1985 with positive results.[43] Public opposition stalled its permanent implementation. Proposals were however raised again in 2012.[44]
Singapore
The world's first congestion pricing scheme was introduced in Singapore's core central business district in 1975
Europe
Austria
A distance-based charging scheme called Go-Maut was implemented in Austria for all vehicles over 3.5 tonnes on motorways in 2004.[6] In addition, all vehicles under 3.5 tonnes are required to buy a sticker or vignette to access the Austrian motorway network, which is owned and operated by a state-owned company called ASFINAG. The vignette enables the vehicle to use almost the entire motorway network in Austria for a specific period of time, with the lower charge set at €8 for 10 days. However, there is an additional toll charge for selected routes, such as long tunnels and expensive routes through the Alps.[49]
Belarus
Finland
The only Finnish town to suffer serious road congestion is Helsinki, built on a narrow peninsula. In the 1980s and 1990s, the City Administration was already proposing tolls on vehicles entering the centre but the Chamber of Commerce successfully resisted these.[50] Road pricing was taken up in the central government programme in 2011 when the coalition members committed themselves to examine "the introduction of GPS-based road user charges".[51] Transport minister Merja Kyllönen set up a working group to study "road user charging systems" in October 2012.[52] The Ministry was committed to the architecture of the European Electronic Toll Service.[53]
In March 2013, an independent Finnish policy institute recommended a market-based road pricing architecture for Europe. The roads needed for a journey could be pre-booked, the price of "slots" rising as the roads to be used approached capacity. The price would become payable at the scheduled time of departure unless the slot holder resold the slot before then. Casual motorists without bookings would be charged the current price.[54] The paper proposed that Finland, having no serious road congestion to address, could serve as a testbed for road charging mechanisms.
The Transport Ministry's working group reported in December 2013 that a tax proportional to road use would implement transport and environment policies better than current fixed taxes on motoring, although collection costs would be many times higher. The focus of transport policy should be on solving capacity problems by managing demand rather than by building new infrastructure. However, it argued that buses and lorries should be exempted from road use charges on the grounds that the rise in costs could not be offset by cutting other heavy vehicle road taxes, which were already close to the minimum set in the EU's vignette directive. For private cars, the report looked at the implications of fixed and regional kilometre charges but did not consider market or other methods for responding to varying local congestion. Before the adoption of any system, it proposed broad trials to establish the technical viability of taxing road use, its enforceability, and the protection of privacy.[55]
Germany
The
Ireland
Toll roads are common in Ireland for motorways and bridges/tunnels, with 11 toll roads in existence as of 2019.
In the 18th and 19th Centuries
The first modern road charging scheme was introduced in 1984 on the East Link, a bascule lift bridge in Dublin's docklands, constructed by National Toll Roads (NTR) under a public-private partnership concession. This was followed by the West-Link bridge in 1990, similarly a concession to NTR. However, despite the opening of a second bridge in 2003, capacity and toll management of the West-Link was woefully inadequate, resulting in massive congestion on the Dublin M50 ring road. In 2007, the government bought out NTR's concession and introduced barrier-free tolling in order to end the jams.
In order to fund long-distance motorway construction in the mid-2000s, a new PPP model of DBOF (design, build, operate and finance PPP) concessions was adopted. International construction companies primarily backed these. The first such toll motorway was the M4/M6 operated by Spanish company
Italy
Rome converted a residents' pass system for the core of the city to a road pricing system in 2001 and Genoa started a trial system in 2003.[16]
The
The scheme was made permanent in March 2013. All net earnings from Area C are invested to promote
Malta
The automated 'Controlled Vehicular Access' (CVA) system was launched in Malta's capital city of Valletta on 1 May 2007.[62] The number of vehicles entering the city reduced from 10,000 to 7,900; there has also been a 60% drop in car stays by non-residents of more than eight hours with a marked increase of 34% in non-residential cars visiting the city for an hour or less.[63][64]
Norway
Norway implemented electronic urban tolling on the main road corridors into
Sweden
The
United Kingdom
The Smeed Report recommended the implementation of congestion charging in 1964.[71] Road pricing for London was considered by the Greater London Council in 1973 but was not progressed. The Durham City congestion charge was introduced in 2002[72] and the London congestion charge in 2003.[73]
In June 2005,
London
The London congestion charge is a flat-fee daily charge to enter the Congestion Charge Zone (CCZ) in central London, introduced in 2003. This was supplemented in 2008 by a Low Emission Zone (LEZ) charge, and in 2017 by a toxicity charge (‘T-Charge’), now an Ultra Low Emission Zone (ULEZ) charge. A Western Extension to the Congestion Charge Zone was added in 2007 and then removed in January 2011.
A plan to incorporate an emissions-based supplement into the Congestion Charge was cancelled following the 2008 Mayoral election.[81][82] Instead, the London low emission zone was introduced in stages between 2008 and 2012 with an aim of reducing the pollution emissions of diesel-powered commercial vehicles in London.[83]
Approved by Mayor Boris Johnson in April 2013, the Ultra Low Emission Discount (ULED) went into effect on 1 July 2013, substituting the Greener Vehicle Discount. The ULED introduced more stringent emission standards that limited the free access to the congestion charge zone to
A toxicity charge, known as T-Charge, was introduced on 23 October 2017.[87] Older and more polluting cars and vans that did not meet Euro 4 standards had to pay an extra £10 charge on top of the congestion charge to drive in central London, within the CCZ. The charge typically applied to diesel and petrol vehicles registered before 2006, and the levy was expected to affect up to 10,000 vehicles.[88][89]
The T-Charge was replaced on 8 April 2019 with an ULEZ charge.[90] Motor vehicles that do not meet the emissions criteria are charged £12.50 for most vehicle types, or £100 for heavier vehicles,[91] to enter central London for a day. London-licensed taxis are exempted from the ULEZ; temporary exemptions and discounts apply to residents until 24 October 2021, and to disabled drivers until 26 October 2025.[92]
London Mayor Sadiq Khan announced the introduction of the T-Charge on 17 February 2017 after London achieved record air pollution levels in January 2017, and the city was put on very high pollution alert for the first time ever, as cold and stationary weather failed to clear toxic pollutants emitted mainly by diesel vehicles.[93] The Mayor also announced plans to expand the ULEZ[91] beyond Central London a year earlier than planned in 2019.
Middle East
Dubai
The
North America
New York
In March 2001, the
In April 2007 the
Governor Andrew Cuomo reintroduced a congestion pricing proposal for New York City in 2017 in response to the New York City Subway's state of emergency, a proposal that Mayor Bill de Blasio opposed. A commission to investigate the feasibility of congestion pricing, organized in late 2017, found that a congestion pricing scheme could benefit New York City. If approved, New York City's congestion pricing zone will be the first in North America.[99][100][101][102] Cuomo's administration was set to review these proposals in January 2018, although the details of the congestion zones had not been revealed yet.[103]
San Francisco
In 2006,
Other metropolitan areas
In August 2007, the
High-occupancy toll (HOT) lanes
.South America
Brazil
In January 2012, the federal government of Brazil enacted the Urban Mobility Law that authorizes municipalities to implement congestion pricing to reduce traffic flows. The law also seeks to encourage the use of public transportation and reduce air pollution. According to the law, revenues from congestion charges should be destined exclusively to urban infrastructure for public transportation and non-motorized modes of locomotion (such as walking and cycling), and to finance public subsidies for transit fares. The law went into effect in April 2013.[115][116][117]
- São Paulo city
In April 2012, one of the committees of the
Chile
Congestion pricing has also been implemented in urban freeways. Between 2004 and 2005,
See also
- GNSS road pricing
- List of toll bridges
- List of toll roads
- Road space rationing
- Sustainable transport
- Toll roads around the world
- Vehicle miles traveled tax
- Vignette
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- Tsekeris, Theodore; Voß, Stefan (2009). "Design and evaluation of road pricing: State-of-the-art and methodological advances". Netnomics. 10: 5–52. S2CID 153724717.
- Verhoef, Erik T.; Bliemer, Michiel; Steg, Linda; Van Wee, Bert, eds. (2008). Pricing in Road Transport: A Multi-Disciplinary Perspective. Edward Elgar Publishing, Cheltenham, UK. ISBN 978-1845428600.
- Walters, A. A. (1968). The Economics of Road User Charges. World Bank Staff Occasional Papers Number Five, Washington, D.C. ISBN 978-0-8018-0653-7.
External links
- Fuel for Thought – The what, why and how of motoring taxation Institute for Fiscal Studies (2012)
- National Alliance Against Tolls (Britain) Road pricing page
- Reducing Congestion and Funding Transportation Using Road Pricing in Europe and Singapore published by AASHTO and the TRB
- Review of Road Pricing to Reduce Congestion, U.S. Government Accountability Office– 2012
- When the Road Price Is Right – Land Use, Tolls, and Congestion Pricing, ISBN 978-0-87420-262-5
- TripSum @ Xeesa.com: Online Fuel/ ERP/ Taxi fare calculator to check and calculate Fuel cost, ERP(Toll pricing) and Taxi Fare needed for a motorist's driving or taxi trip in Singapore