congestion charging and pricing drawing by ruairi o brien congestion charging and pricing
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CONGESTION CHARGING AND PRICING
www.transportlearning.net
Drawing by Ruairi O Brien
CONGESTION CHARGING AND PRICING
CONGESTION CHARGING AND PRICING
www.transportlearning.net
topics
Where are we now?
What’s road user charging (RUC)?
Why apply RUC? Economic theory
What are we trying to achieve with RUC?
How does RUC achieve it?
Some examples – Singapore, Trondheim, London, Stockholm, Italy, Znojmo
How to implement RUC – maximising the chances
Generating RUC options for your own town/city
CONGESTION CHARGING AND PRICING
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Where are we now?
long delays due to congestion
economic lost (time, energy)
air pollution and noise cause health damage
shortage of parking place
unpleasant street environment-cities
severance of social networks
SO…
NO for increasing capacity by building new roads-due to induce traffic-long been out of transport policy agenda
YES for balance-travel/traffic demand management
CONGESTION CHARGING AND PRICING
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What’s RUC?
Simply: charging drivers for their road use/driving
Aren’t they charged enough?
• purchase tax, road taxes, compulsory insurance, petrol tax, etc.
NO
Marginal cost of driving?
Supermarket parallel!
CONGESTION CHARGING AND PRICING
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Economic theory suggests
the cost borne by the user of roads should reflects the sum of the marginal costs they impose on:
infrastructure provider• cost for operation and road damage
other road users• cost for congestion, risk of accidents
outside transport system• cost for accident externalities and environmental damage
RUC adds these marginal costs onto real cost of driving - drivers take more economically rational travel decisions - traffic volumes reduce
CONGESTION CHARGING AND PRICING
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What do we achieve?
reduced congestion-faster car and public transport journeys, safer cycling and walking,…...
reduced environmental pollution-breathable air, quieter streets, less green house effect,…...
revenue -provides frequent, reliable, comfortable public transport, better cycling/ walking environment, better roads, safety measures, …...
CONGESTION CHARGING AND PRICING
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Acceptability
It’s a problem! - huge political sensitivity
Novelty
Not wanting to pay for what’s been free before
Equity issues
Conventional measures - more popular
But acceptability increases if cash spent on transport and environment
CONGESTION CHARGING AND PRICING
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Has it been tried somewhere?
Singapore Area Licence Scheme in 1975
Bergen Cordon Crossing in 1986
Oslo Cordon Crossing in 1990
Trondheim Cordon Crossing in 1991
Singapore Electronic Road Pricing -combination of cordon crossing and point crossing scheme in 1998
London Area License Scheme 2003 (to be extended 2006)
Stockholm cordon crossing 2006
Major Italian cities – area licences
CONGESTION CHARGING AND PRICING
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What is an RUC scheme like?
Principles of charging
• Area licence
• Cordon
• Distance/speed based
• Charge and time of charging
• Who is charged; and exemptions
For what is revenue used?
Administration/technology - how it is operated
• Charging and billing
• Enforcement
CONGESTION CHARGING AND PRICING
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Singapore: demand management
ALS (1975)
Rush hour traffic reduced by 45%
traffic speeds increased by 20%
accidents fell by 25%
ERP (1998)
Daily Traffic volumes reduced by 20-24%
speeds from 40 to 45 kmh
CONGESTION CHARGING AND PRICING
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Singapore- charging principles
area: CBD-restricted zone and some expressways
time: initially morning peak, later covered evening peak, thereafter included off-peak, EP operates during working hours including Saturday till 2 pm
type: initially Area Licensing then inbound Cordon Crossing
level of charge: $3 for a daily, $2 for off-peak licence, ERP - varies
charging entity: vehicles
variations: time of day, type of vehicle, location (ERP)
Technology – on-board meter and smartcard, debited when vehicle passes charging point
Charges varied every 3 months to keep traffic level of service at same level
Enforcement – camera/ANPR
CONGESTION CHARGING AND PRICING
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Trondheim: infrastructure investments
Many new roads, such as new airport road, tunnels
New bypass
Cycling paths
environmental measures
improved public transport
CONGESTION CHARGING AND PRICING
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Trondheim - charging principles
Area: built area including airport road
time: operates during working hours
type: inbound Cordon Crossing
level of charge: €3 for crossing
charging entity: vehicles
variations: time of day, type of vehicle, location (EP), maximum use per period
CONGESTION CHARGING AND PRICING
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London scheme
Plans for many years
Legal basis - 1999 London Government Act and 2000 Transport Act
Area licence scheme for central area (21 km2), intro Feb 2003
Up to 50,000 vehicles per hour into this area
Planned to raise £130 million per year – in fact £70 million
Revenues hypothecated for 10 years
Exemptions - residents (90% discount)
Many payment methods, ANPR and foot patrol enforcement
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London Scheme area
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London Scheme 2
Congestion inside zone reduced by 30%
Traffic levels reduced by 18%
30% reduction in number of cars and 65,000 fewer car movements
20% increase in movements by buses coaches and taxis
Increase of 29,000 bus passengers entering zone during morning peak
Bus reliability and journey times improved - additional time passengers wait at bus stops caused by service delays or missing buses cut by 20% across all of London and by 30% in and around charging zone
Some debate about retail impacts
Little diversion of traffic around zone
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Netherlands
Urban cordons planned on major roads in Randstad
2.5 Euro charge would decrease peak traffic on motorways by 35%
First step towards kilometer-heffing
Four Randstad cities very unkeen (economic development) but bribed by Dutch Ministry of Transport
Then a dead leader was elected and it all went down the drain, for now
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Implementing RUC
To maximise chances of RUC scheme being implemented, need:
• Agreement on objectives and that there is a problem to solve
• Political champion
• Resources – people and money
• (Preferably) only one decision making body
• Single implementing agency
• Ability to improve alternatives (widely) before pricing implemented
• Straightforward and supportive enabling legislation
• Effective marketing/communication strategy, from the start
CONGESTION CHARGING AND PRICING
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Conclusion
Road pricing - can it ever be acceptable?
Norway, Durham, London show it can be
Key elements in success:
• Perception of problem
• Business community support
• Political consensus OR champion (e.g. Ken)
• Simple scheme, at least to start with
• Hypothecation of revenues
• Obvious up-front investment in alternatives
CONGESTION CHARGING AND PRICING
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Useful references
http://www.europrice-network.org
http://www.progress-project.org
http://www.imprint-eu.org/seminars.htm
• Following papers by
• Begg (nice pictures)
• Chin (Singapore)
• Baker (acceptability)
• Can all be downloaded