Road pricing
Encyclopedia
Road pricing is an economic concept regarding the various direct charges applied for the use of road
Road
A road is a thoroughfare, route, or way on land between two places, which typically has been paved or otherwise improved to allow travel by some conveyance, including a horse, cart, or motor vehicle. Roads consist of one, or sometimes two, roadways each with one or more lanes and also any...

s. The road charges includes fuel tax
Fuel tax
A fuel tax is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation...

es, licence fees
Vehicle licence
A valid vehicle licence is required by law in some countries to be displayed on any registered motor vehicle if it is to be used or kept on a public road.-Worldwide:...

, parking
Parking
Parking is the act of stopping a vehicle and leaving it unoccupied for more than a brief time. Parking on one or both sides of a road is commonly permitted, though often with restrictions...

 taxes, tolls
Toll road
A toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...

, and congestion charges
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

, including those which may vary by time of day, by the specific road, or by the specific vehicle type
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....

, being used. Road pricing has two distinct objectives: revenue generation, usually for road infrastructure financing, and congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 for demand management
Transportation Demand Management
Transportation demand management, traffic demand management or travel demand management is the application of strategies and policies to reduce travel demand , or to redistribute this demand in space or in time.In transport as in any network, managing demand can be a cost-effective alternative to...

 purposes. Toll roads are the typical example of revenue generation. Charges for using high-occupancy toll lanes or urban tolls for entering a restricted area of a city are typical examples of using road pricing for congestion management purposes.

European application

Facing rising levels of traffic congestion
Traffic congestion
Traffic congestion is a condition on road networks that occurs as use increases, and is characterized by slower speeds, longer trip times, and increased vehicular queueing. The most common example is the physical use of roads by vehicles. When traffic demand is great enough that the interaction...

, European governments are giving serious consideration to nationwide road pricing schemes. Some of these could exploit the new Galileo
Galileo positioning system
Galileo is a global navigation satellite system currently being built by the European Union and European Space Agency . The €20 billion project is named after the famous Italian astronomer Galileo Galilei...

 satellite positioning system, although it is possible to arrange road pricing using various different technologies. A satellite based system would entail vehicles containing a satellite tracking device which would determine which roads were being driven along, for how far and at what time of day. This information would then be sent to a central computer system, and the appropriate charges levied against the driver.

Germany

Schemes for charging trucks (lorries) in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 (by the company Toll Collect
Toll Collect
Toll Collect GmbH is a German company that has developed and is running the tolling system for trucks on German motorways.The company is a consortium led by Daimler AG, Deutsche Telekom, and Cofiroute. It has won a bid for the development of a toll billing system from the German government. The...

) and Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

 are already underway. The LKW-MAUT
LKW-MAUT
Germany's LKW-Maut is a toll for goods vehicles based on the distance driven in kilometres, the number of axles and the emission category of the vehicle.-Overview:...

 road pricing scheme began on January 1, 2005, trucks pay between €0.09 and €0.14 per kilometer depending on their emission levels and number of axles. The expensive scheme, combining satellite technology with other technologies, suffered numerous delays before implementation, whilst a scheme using much simpler technology in Austria was up and running in 2004.

In the UK, the Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

 government announced in July 2005 that the proposed UK truck road user charging scheme would not go ahead.

Italy

A traffic charge program in Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...

, called "Ecopass
Ecopass
The Ecopass program is a traffic pollution charge implemented in Milan, Italy, as an urban toll for some motorists traveling within a designated traffic restricted zone or ZTL , corresponding to the central Cerchia dei Bastioni area and encircling around . The Ecopass was implemented as a one-year...

", began on a trial basis on January 2, 2008. It exempts vehicles compliant with the Euro3 and Euro4 emission standards
European emission standards
European emission standards define the acceptable limits for exhaust emissions of new vehicles sold in EU member states. The emission standards are defined in a series of European Union directives staging the progressive introduction of increasingly stringent standards.Currently, emissions of...

 or higher, as well as several alternative fuel vehicle
Alternative fuel vehicle
An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum...

s. Residents within the restricted zone, called ZTL , may purchase a discounted annual pass. Although the program is operationally similar to existing congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 schemes, its main objective is to reduce air pollution from vehicle emissions rather than relieve traffic congestion. The program was extended until December 31, 2009, and a public consultation will be conducted to decide if the charge should become permanent.

Malta

A fully automated system called a Controlled Vehicular Access (CVA) system has been launched in Malta
Malta
Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...

's capital city of Valletta since May 1, 2007. When compared to other countries that make use of congestion charging models, the Maltese system makes use of a wider array of innovations including variable payments according to the duration of stay, flexible exemption rules, including exemptions for residents within the charging zone, and monthly or quarterly billing options for vehicle owners. Pre-payment facilities, including direct debit arrangements and purposely designed vouchers, are also available. The billing system was designed in Malta and has been described as a state of the art 'next generation congestion charge billing solution'. The Valletta Congestion Charge, which is also known as Valletta CVA, was recently nominated for the Best European Transport Strategy Award. Public voting is still underway.

Norway

One of the earliest schemes was introduced in Bergen
Bergen
Bergen is the second largest city in Norway with a population of as of , . Bergen is the administrative centre of Hordaland county. Greater Bergen or Bergen Metropolitan Area as defined by Statistics Norway, has a population of as of , ....

 in Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

 in 1986. Only traffic entering the town is charged and only during weekdays from 6:00 a.m. through 10:00 p.m. Public service vehicles pay no charge.

Bergen has now a fully automated toll plaza system that is based on passing without stopping for all traffic. There are no coin slots or manual service. A similar system was introduced for the Oslo Toll Ring from February 2, 2008. To ensure interoperability of electronic fee collection in Norway a system called AutoPASS is used throughout the country for toll roads and congestion charging schemes etc. Most local drivers have purchased a tag which is automatically read on passing the detectors. , there will be six fully automated schemes in operation. Motorists without a tag pay a fee at a manual barrier.

Sweden

Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

 has a congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 system, Stockholm congestion tax
Stockholm congestion tax
The Stockholm congestion tax , also found referred to as the Stockholm congestion charge, is a congestion pricing system implemented as a tax levied on most vehicles entering and exiting central Stockholm, Sweden...

, in use on a permanent basis since August 1, 2007, after having had a seven month trial period from January 3 to July 31, 2006. The City Centre
Stockholm City Centre
Stockholm City Centre is the city centre of Stockholm in Sweden. The entire city of Stockholm is also the centre of the Stockholm Metropolitan Area....

 is within the congestion tax zone. All the entrances and exits of this area have unmanned control points operating with automatic number plate recognition
Automatic number plate recognition
Automatic number plate recognition is a mass surveillance method that uses optical character recognition on images to read the license plates on vehicles. They can use existing closed-circuit television or road-rule enforcement cameras, or ones specifically designed for the task...

. All vehicles entering or exiting the congestion tax affected area, with a few exceptions, have to pay 10–20 SEK
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...

 (1.09–2.18 EUR
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

, 1.49–2.98 USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

) depending on the time of day between 06:30 and 18:29. The maximum tax amount per vehicle per day is 60 SEK (6.53 EUR, 8.94 USD). Payment is done by various means within 14 days after one has passed one of the control points, one cannot pay at the control points.

United Kingdom

UK governments have periodically considered the possibility of using road pricing since the early 1960s, when the Smeed Report
Smeed Report
The Smeed Report was a study into alternative methods of charging for road use, commissioned by the UK government between 1962 and 1964. The report stopped short of an unqualified recommendation for road pricing but concluded that it could work and should be considered for congested road...

 considered how to implement congestion charging.

Durham
Durham
Durham is a city in north east England. It is within the County Durham local government district, and is the county town of the larger ceremonial county...

 became the first city in the UK to have a permanent congestion charge
Durham City congestion charge
The Durham City congestion charge was the first congestion charge to be introduced in the UK in October 2002.Durham County Council introduced the toll for drivers using 1,000-year-old Saddler Street in the city centre which stands on the peninsula above the River Wear. This is the only public...

 in 2002. London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 has had a congestion charge
London congestion charge
The London congestion charge is a fee charged for some categories of motor vehicle to travel at certain times within the Congestion Charge Zone , a traffic area in London. The charge aims to reduce congestion, and raise investment funds for London's transport system...

 in the central area since 2003. Administered by Transport for London
Transport for London
Transport for London is the local government body responsible for most aspects of the transport system in Greater London in England. Its role is to implement the transport strategy and to manage transport services across London...

 (TfL), the charge was initially set at £5, from 17 February 2003, then raised to £8 on 4 July 2005. The daily charge must be paid by the registered keeper of a vehicle that is on public roads in the congestion charge zone between 7 a.m. and 6 p.m. (previously 6:30 p.m.), Monday to Friday. Failure to pay the charge means a fine of at least £50. The charge area was extended into parts of west London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 on 19 February 2007.

A scheme similar to the one in London was proposed in Manchester, covering a wider area but with a much smaller daily charging window covering the morning and evening rush hours. However, this was overwhelmingly rejected when voted upon in Greater Manchester. A scheme for Cambridge
Cambridge
The city of Cambridge is a university town and the administrative centre of the county of Cambridgeshire, England. It lies in East Anglia about north of London. Cambridge is at the heart of the high-technology centre known as Silicon Fen – a play on Silicon Valley and the fens surrounding the...

 is currently under consideration and the subject of heated public debate, with council surveys showing that a majority of Cambridge-area residents reject the scheme. A scheme for Edinburgh was rejected in a public referendum in February 2005. In March 2008, councils from across the West Midlands
West Midlands (county)
The West Midlands is a metropolitan county in western central England with a 2009 estimated population of 2,638,700. It came into existence as a metropolitan county in 1974 after the passage of the Local Government Act 1972, formed from parts of Staffordshire, Worcestershire and Warwickshire. The...

, including those from Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...

 and Coventry
Coventry
Coventry is a city and metropolitan borough in the county of West Midlands in England. Coventry is the 9th largest city in England and the 11th largest in the United Kingdom. It is also the second largest city in the English Midlands, after Birmingham, with a population of 300,848, although...

, rejected the idea of imposing road pricing schemes on the area, this was despite promises from central government of transport project funding in exchange for the implementation of a road pricing pilot scheme. Similar schemes proposed for cities in the East Midlands
East Midlands
The East Midlands is one of the regions of England, consisting of most of the eastern half of the traditional region of the Midlands. It encompasses the combined area of Nottinghamshire, Derbyshire, Leicestershire, Rutland, Northamptonshire and most of Lincolnshire...

 have also been dropped.

Extensive studies are being done on introducing a scheme for all UK vehicles, with an aim to implementation at the earliest around 2013. In October 2005 the UK government suggested they explore "piggy-backing" road pricing on private sector technologies, such as usage based insurance (also known as pay-as-you-drive, or PAYD). This method would avoid a large-scale public sector procurement exercise, but such products are unlikely to penetrate the mass market. If introduced, this scheme would likely see a charge being levied per kilometre depending on the time of day, the road being driven along, and perhaps the type of vehicle. For example, a large car driving along the western section of the M25
M25 motorway
The M25 motorway, or London Orbital, is a orbital motorway that almost encircles Greater London, England, in the United Kingdom. The motorway was first mooted early in the 20th century. A few sections, based on the now abandoned London Ringways plan, were constructed in the early 1970s and it ...

 in rush hour would pay a high charge; a small car driving along a rural lane would pay a much lower charge. The very highest charges would be likely in the most congested urban areas. It is expected that rural motorists would benefit the most from such a scheme, perhaps by paying less through road pricing than they do at present through petrol and car taxes, whereas urban motorists would pay much more than they presently do. However, this is highly dependent on whether such a scheme would be designed to be either revenue neutral or congestion neutral. A revenue neutral scheme would replace (at least in part) petrol and vehicle taxes, and would be such that Treasury revenue under the new scheme would equal the revenue from current taxes. A congestion neutral scheme would be designed so that growth in congestion levels would stop as a result of the new charges; the latter scheme would require significantly higher (and increasingly higher) charges than the revenue neutral scheme and so would be unpopular with the UK's 30 million motorists. The carbon emission consequence of moving from fuel duty to a charge per mile has been raised as a concern by some environmentalists, as has any diversionary response from heavily trafficked (and hence more expensive) roads. The UK government announced funding for road pricing research in seven local areas in November 2005.

In June 2005, Transport Secretary Alistair Darling
Alistair Darling
Alistair Maclean Darling is a Scottish Labour Party politician who has been a Member of Parliament since 1987, currently for Edinburgh South West. He served as the Chancellor of the Exchequer from 2007 to 2010...

 announced the current proposals to introduce road pricing. Every vehicle would be fitted with a satellite receiver to calculate charges, with prices (including fuel duty) ranging from 2p per mile on uncongested roads to £1.34 on the most congested roads at peak times.

A 2007 online petition against road pricing, started by Peter Roberts and hosted by the British government attracted over 1.8 million signatures, equivalent to 6% of the entire driving population. Over 150,000 signatures were added during the last day before the petition closed on 20 February 2007. In reply, the prime minister e-mailed the petitioners outlining his rationale, denying that the proposals were to introduce a stealth tax or increase surveillance, and promising 'debate' before a decision was made as to whether to introduce a national scheme. Also, in a recent poll 74% of those questioned opposed road pricing.

In July 2008, Roberts started the Drivers' Alliance, an organisation dedicated to researching the issues surrounding road pricing and campaigning against its introduction. The Drivers' Alliance was instrumental in preventing the introduction of a congestion charge in Manchester and also changes in UK government policy where road pricing is no longer being considered.

Singapore

Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

 implemented the world's first congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 scheme in 1975, through manual police control around the CBD of an urban area (see Area Licensing Scheme
Singapore Area Licensing Scheme
The Singapore Area Licensing Scheme , introduced in 1975, charged drivers entering downtown Singapore, and thereby aimed to manage traffic demand. This was the first urban traffic congestion pricing scheme to be successfully implemented in the world...

). In September 1998 the system was upgraded with ETC technology, 100% free-flow (see Electronic Road Pricing
Electronic Road Pricing
The Electronic Road Pricing scheme is an electronic toll collection scheme adopted in Singapore to manage traffic by road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system...

). The electronic toll collection
Electronic toll collection
Electronic toll collection , an adaptation of military "identification friend or foe" technology, aims to eliminate the delay on toll roads by collecting tolls electronically. It is thus a technological implementation of a road pricing concept...

 scheme adopted was implemented by the Land Transport Authority
Land Transport Authority
The Land Transport Authority is a statutory board under the Ministry of Transport of the Singapore Government.-History:...

 (LTA), after careful planning and successfully stress-testing the system. The congestion charges were implemented as part of a comprehensive package of road pricing and harsh ownership restraints, in recognition of the country's land constraints, need of economic competitiveness, and to avoid the traffic gridlock that chokes many cities in the world.

One key aspect of traffic management
Transportation Demand Management
Transportation demand management, traffic demand management or travel demand management is the application of strategies and policies to reduce travel demand , or to redistribute this demand in space or in time.In transport as in any network, managing demand can be a cost-effective alternative to...

 in Singapore is the restraint of vehicle ownership, either through the imposition of high ownership costs or restriction on the actual growth of the car population. These measures have included high annual road tax, custom duties and vehicle registration fees. Besides fiscal deterrents, supply of motor vehicles was regulated since 1990, when a Vehicle Quota System was introduced. Use-related charges, such as fuel taxes (50% of final sale price), congestion charges and high parking rates are utilized by public authorities to further constraint travel. In parallel to the whole spectrum of road pricing measures, the government has invested heavily in public transportation and implemented a park-and-ride scheme. In summary, Singapore's urban and transport strategy allowed the users to have pro-transit "carrots" matching auto-restraint "sticks", As a result, and despite having one of the highest per capita incomes in Asia, fewer than 30% of Singaporean households owns cars.

In an effort to improve the pricing mechanism and to introduce real-time variable pricing
Variable pricing
Most firms use a fixed price policy. That is, they examine the situation, determine an appropriate price, and leave the price fixed at that amount until the situation changes, at which point they go through the process again...

, Singapore’s LTA
Land Transport Authority
The Land Transport Authority is a statutory board under the Ministry of Transport of the Singapore Government.-History:...

, together with IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

, ran a pilot from December 2006 to April 2007, with a traffic estimation and prediction tool
Traffic estimation and prediction system
Traffic estimation and prediction systems have the potential to improve traffic conditions and reduce travel delays by facilitating better utilization of available capacity. These systems exploit currently available and emerging computer, communication, and control technologies to monitor, manage,...

, which uses historical traffic data and real-time feeds with flow conditions from several sources, in order to predict the levels of congestion up to an hour in advance. By accurate estimating prevailing and emerging traffic conditions, this technology is expected to allow variable pricing
Variable pricing
Most firms use a fixed price policy. That is, they examine the situation, determine an appropriate price, and leave the price fixed at that amount until the situation changes, at which point they go through the process again...

, together with improved overall traffic management, including the provision of information in advanced to alert drivers about conditions ahead, and the prices being charged at that moment. This new system integrates with the various LTA's traffic management
Transportation Demand Management
Transportation demand management, traffic demand management or travel demand management is the application of strategies and policies to reduce travel demand , or to redistribute this demand in space or in time.In transport as in any network, managing demand can be a cost-effective alternative to...

 existing systems, such as the Green Link Determining System, TrafficScan, Expressway Monitoring Advisory System, Junction Electronic Eyes, and the Electronic Road Pricing system. The pilot results were successful, showing overall prediction results above 85 percent of accuracy.

Shanghai

Following the strategy of Singapore
Electronic Road Pricing
The Electronic Road Pricing scheme is an electronic toll collection scheme adopted in Singapore to manage traffic by road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system...

, the city of Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

 has implemented policies to restrain both car use and ownership, while improving public transport in Shanghai
Public transport in Shanghai
Shanghai has an extensive public transport system, largely based on buses, trolley buses, taxis, and a rapidly expanding metro system. All of these public transport tools can be accessed using the Shanghai Public Transportation Card, which uses radio frequencies so the card does not have to...

. Since 1998, the number of new car registrations is limited to 50,000 vehicles a year. Car registrations are sold in a public auction
Public auction
A public auction is an auction held on behalf of a government in which the property to be auctioned is either property owned by the government, or property which is sold under the authority of a court of law or a government agency with similar authority....

, with prices reaching up to US$5,000 in 2006. Also, parking is limited and there are restrictions on getting a driver's license
Driver's license
A driver's license/licence , or driving licence is an official document which states that a person may operate a motorized vehicle, such as a motorcycle, car, truck or a bus, on a public roadway. Most U.S...

. Main roadways and highways are tolled, and an assessment was completed to evaluate implementation of congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 for vehicles entering the central business district
Central business district
A central business district is the commercial and often geographic heart of a city. In North America this part of a city is commonly referred to as "downtown" or "city center"...

. The City of Nanjing
Nanjing
' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...

  is also considering the implementation of congestion pricing.

Beijing

The city of Beijing implemented a temporary road space rationing
Road space rationing
Road space rationing is a travel demand management strategy aimed to reduce the negative externalities generated by peak urban travel demand in excess of available supply or road capacity, through artificially restricting demand by rationing the scarce common good road capacity, especially...

 based on plate numbers in order to significantly improve air quality in the city during the 2008 Summer Olympics
2008 Summer Olympics
The 2008 Summer Olympics, officially known as the Games of the XXIX Olympiad, was a major international multi-sport event that took place in Beijing, China, from August 8 to August 24, 2008. A total of 11,028 athletes from 204 National Olympic Committees competed in 28 sports and 302 events...

. Enforcement was carried out through an automated traffic surveillance network, and the restriction was in effect for two months. The measure was so successful in cleaning the air and relieving traffic congestion
Traffic congestion
Traffic congestion is a condition on road networks that occurs as use increases, and is characterized by slower speeds, longer trip times, and increased vehicular queueing. The most common example is the physical use of roads by vehicles. When traffic demand is great enough that the interaction...

, that a modified version of the restriction was made permanent afterward in October 2008, now banning 20% of the vehicles on a given weekday instead of half the vehicles as implemented during the Olympics. Also a ban on heavy trucks from entering the city during the day was implemented, and the oldest most polluting automobiles, called "yellow-label" cars, after the sticker fixed to their windshields, are banned from entering the city center. In July 2009 a nationwide car scrappage program
Scrappage program
A scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, high emissions vehicles from the road...

 was implemented offering rebates for trade in old heavy polluting cars and trucks for new ones.

In December 2010, the city imposed limits on the number of new cars that can be registered by month, which resulted in an immediate decline in new car sales of almost 70%. Buyers are selected through a lottery to meet the monthly quotas . In September 2011, local officials announced plans to introduce congestion pricing in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

. No details have been provided regarding the magnitude of the congestion charges or the charge zone. The measure was initially proposed in 2010 and was recommended by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

.

Guangzhou

In early 2010 the city Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

, Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...

 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.

Single facilities and HOT lanes

The most common application of congestion pricing policies in the U.S. urban transportation context is to adopt an innovative tolling in a single facility (highway or bridge) for a particular limited purpose. The most common of these schemes is known as high-occupancy toll (HOT) lanes, which allows users of low or single-occupancy vehicles to use a high-occupancy vehicle lane
High-occupancy vehicle lane
In transportation engineering and transportation planning, a high-occupancy vehicle lane is a lane reserved for vehicles with a driver and one or more passengers...

s (HOV) if they pay a toll, while travelling in the congested side lanes continues to be free of charge. The first practical implementations was California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

's private toll 91 Express Lanes, in Orange County
Orange County, California
Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...

 in 1995, followed in 1996 by Interstate 15
Interstate 15 in California
In the U.S. state of California, Interstate 15 is a major north–south route through the San Bernardino, Riverside, and San Diego Counties, and it has a length of in the state. It is a major thoroughfare for traffic between Southern California and Las Vegas, Nevada, as well as points beyond...

 in San Diego. There has been controversy over this concept, and HOT schemes have been called "Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...

" lanes, as critics see this new pricing scheme as a perk to the rich.

Congestion pricing in the form of variable tolls by time-of-the-day have also been implemented in several bridges and tunnels providing access to the central business district
Central business district
A central business district is the commercial and often geographic heart of a city. In North America this part of a city is commonly referred to as "downtown" or "city center"...

s of several major cities. In most cases there was a toll already in existence. In March 2001, the Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...

 implemented a discount on regular toll fees during off-peak hours for those vehicles paying electronically with an EZ Pass. These discount toll was implemented at several tunnels and bridges connecting New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

 and New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, including the George Washington Bridge
George Washington Bridge
The George Washington Bridge is a suspension bridge spanning the Hudson River, connecting the Washington Heights neighborhood in the borough of Manhattan in New York City to Fort Lee, Bergen County, New Jersey. Interstate 95 and U.S. Route 1/9 cross the river via the bridge. U.S...

, Lincoln Tunnel
Lincoln Tunnel
The Lincoln Tunnel is a long tunnel under the Hudson River, connecting Weehawken, New Jersey and the borough of Manhattan in New York City.-History:...

, and Holland Tunnel
Holland Tunnel
The Holland Tunnel is a highway tunnel under the Hudson River connecting the island of Manhattan in New York City with Jersey City, New Jersey at Interstate 78 on the mainland. Unusual for an American public works project, it is not named for a government official, politician, or local hero or...

, and at some other bridges administrated by PANYNJ. Since March 2008, qualified low-emission automobiles with a fuel economy
Fuel economy in automobiles
Fuel usage in automobiles refers to the fuel efficiency relationship between distance traveled by an automobile and the amount of fuel consumed....

 of at least 45 miles per gallon are eligible to receive a Port Authority Green Pass, which allows for a 50% discount during off-peak hours as compared to the regular full toll.

New York proposal

On April 22, 2007, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

 Mayor Michael Bloomberg
Michael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...

, citing what he considered to be successes in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

 and Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

, proposed a plan to charge $8 per day for cars to use the streets of the central business district (southern half of Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...

) but not when using only the marginal highways, or nights or weekends. It would not involve satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....

 location, but drivers who wanted their tolls collected automatically could have a transponder like the E-ZPass
E-ZPass
E-ZPass is an electronic toll-collection system used on most tolled roads, bridges, and tunnels in the northeastern US, south to Virginia and West Virginia, and west to Illinois. Currently, there are 25 agencies spread across 14 states that make up the . All member agencies use the same technology,...

 already used to collect tolls on tunnels and bridges.

Immediately following the April 22 announcement, a coalition under the banner Campaign for New York's Future
Campaign for New York's Future
The Campaign for New York's Future is a coalition of civic, business, environmental, labor, community and public health organizations that supports the goals and strategic direction of New York City Mayor Michael Bloomberg’s sustainability proposal, PlaNYC 2030....

 came out in support of the Mayor's sustainability proposal, PlaNYC 2030
PlaNYC
PlaNYC is an effort released by New York City Mayor Michael Bloomberg in 2007 to prepare the city for one million more residents, strengthen the economy, combat climate change, and enhance the quality of life for all New Yorkers. The Plan brought together over 25 City agencies to work toward the...

. Others opposed it, saying it would create "rat run
Rat run
Rat running or cut-through driving refers to the use of secondary roads or residential side streets instead of the intended main roads in urban or suburban areas. People do it to avoid heavy traffic, lengthy traffic signals or other obstacles, even where there are traffic calming measures to...

" districts at the border.

On July 16, 2007, the New York Legislature
New York Legislature
The New York State Legislature is the term often used to refer to the two houses that act as the state legislature of the U.S. state of New York. The New York Constitution does not designate an official term for the two houses together...

 shelved the proposal to bring congestion pricing to Manhattan. A week later they passed a law creating a 17-member New York City Traffic Congestion Mitigation Commission to study methods. The Commission's report was favorable and the City Council voted for the measure, but in April 2008 the New York Legislature declined to vote on it, stalling the initiative.

San Francisco proposal

In 2006, San Francisco authorities began a feasibility study to evaluate congestion pricing
Congestion pricing
Congestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...

 in the city. The study, called the Mobility, Access and Pricing Study (MAPS), was financed with a US$1 million grant from the Federal Highway Administration
Federal Highway Administration
The Federal Highway Administration is a division of the United States Department of Transportation that specializes in highway transportation. The agency's major activities are grouped into two "programs," the Federal-aid Highway Program and the Federal Lands Highway Program...

's Value Pricing Program. The study is part of a congestion pricing demonstration project under the Urban Partnerships Congestion Initiative, for which the San Francisco Bay Area
San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas...

 was awarded a $158 million grant.

Initial results from the study show that the program is feasible, and that typical difficulties and controversial issues had been addressed. Authorities are considering exempting low-income drivers and residents within the toll zones. Discounts for commercial fleets were also considered. Different pricing scenarios were analyzed and presented in public meetings in December 2008, and the final study results are expected in 2009.

Criticism

A group of citizens of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 opposes the proposed introduction of road pricing on the basis that the government could be using it to increase motoring taxes overall. A petition opposing road pricing on the Downing Street
Downing Street
Downing Street in London, England has for over two hundred years housed the official residences of two of the most senior British cabinet ministers: the First Lord of the Treasury, an office now synonymous with that of Prime Minister of the United Kingdom, and the Second Lord of the Treasury, an...

 website was supported by 1.8 million signatures. In 2003, the Institute for Public Policy Research
Institute for Public Policy Research
The IPPR is the leading progressive think-tank in the UK. It produces research and policy ideas committed to upholding values of social justice, democratic reform and environmental sustainability. IPPR is based in London and IPPR North has branches in Newcastle and Manchester.It was founded in...

 think tank concluded that overall road pricing would have to raise more money than current taxes if it were to reduce congestion.

See also

  • Toll Road
    Toll road
    A toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...

  • Transport demand management
  • GNSS Road Pricing
    GNSS Road Pricing
    GNSS road pricing or GNSS tolling is the charging of road users using Global Navigation Satellite System sensors inside vehicles. Advocates argue that road pricing using GNSS permits a number of policies such as tolling by distance on urban roads and can be used for many other applications in...

  • List of toll bridges
  • List of toll roads
  • Road space rationing
    Road space rationing
    Road space rationing is a travel demand management strategy aimed to reduce the negative externalities generated by peak urban travel demand in excess of available supply or road capacity, through artificially restricting demand by rationing the scarce common good road capacity, especially...

  • Toll roads around the world
    Toll roads around the World
    - Bangladesh :Bangladesh has 5 toll bridges and 3 toll roads. All of them are of Electronic collection system. In Bangladesh, roads and bridges are built by the Government. After building the roads and bridge, the governmement invites tender to give an Operation and management contract for 5 years...

  • Vignette
    Vignette (road tax)
    A road tax vignette is a form of tax on vehicles, used in several non-English speaking European countries. The term is of French origin, and is now used throughout Central Europe....

  • Congestion Control (Road Vehicles)
    Congestion Control (Road Vehicles)
    Congestion control is a proposed alternative to congestion charging, which is used in a number of cities around the world...


Further reading

  • Smeed, R.J. (1964), "Road pricing: the economic and technical possibilities", HMSO.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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