Four Generations of Congestion Charging

This paper reviews the use of congestion charging, also called pricing for demand management, which has been used since the 1960’s. The authors note that while the underpinnings of the economic theory have not dramatically changed, the approach to implementing price-based congestion mitigation has evolved in several key features, including political strategies employed, technologies used, customer services offered, and degree of alignment of prices charged with externalities imposed. They analyze how the implementation of these concepts evolved from the first road user charging implementation, the Singapore Area Licensing Scheme through schemes in London, Stockholm, Milan and now Manchester. They review several key features of congestion charging systems that have evolved through the generations: the political tools used by the city authorities to win over a skeptical public have grown in sophistication to make congestion charging possible in places where it earlier would have been politically infeasible; improved payment technologies; evolving technology for payment and enforcement; and increased customer service and convenience. They conclude that new generations will not simply copy the earlier generations, but will further evolve the practice of mitigating congestion.


  • English

Media Info

  • Media Type: CD-ROM
  • Features: References;
  • Pagination: 12p
  • Monograph Title: ITS Connections: Saving Time. Saving Lives

Subject/Index Terms

Filing Info

  • Accession Number: 01142418
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 12 2009 11:23AM