What is Congestion Charging?

Sustainable Transport, Congestion Pricing, Innovation, London, Singapore, Stockholm 4 Comments »

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Photo of traffic congestion in Hong Kong by A.H. 1987 from Flickr

Solving the problem of congestion is usually a top priority for city authorities, who note that congestion not only causes air pollution, but also decreases quality of life and imposes significant economic costs, especially in rapidly growing cities. Although different cities have developed different solutions for dealing with the problem of congestion, few have successfully solved it. Mostly cities come up with ad hoc measures for dealing with congestion, like constructing more roads, bridges and highways, which paradoxically spur more car ownership and, hence, more congestion.

To date, the most effective measure to reduce congestion is something called congestion pricing, a type of road pricing put in place during specific times and locations, namely the most congested areas during peak times like rush hour. The pricing scheme is used to encourage travelers to shift to other travel times, routes and modes of transit. Congestion charging rates are flexible and can differ according to the type of motor vehicle, and can either be a flat rate or updated regularly to reflect the prevailing traffic conditions.
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