What is a congestion charge? To reduce congestion and excess demand for public goods, market economists introduced the concept of congestion charges.
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| What is a congestion charge? |
Users pay the negative effects (such as traffic congestion) caused by the use of the goods. Congestion charges are directed to traffic congestion in urban areas. Several cities have applied congestion charges to control traffic congestion by introducing cordon areas in city centers, city toll rings, congestion charges for single facilities, and congestion charges for being within an area wide determined.
One C" White within a red circle indicates the beginning of a congestion zone, and a "C" intersects at the end of the zone. Below are some urban cities that have successfully implemented congestion charges.
What is a congestion charge?
Durham
Durham introduced congestion charges in 2002 that reduced traffic congestion by approximately 85% during the first year.
The congestion charge in Durham City applies to motorists who use Saddler Street to access Durham Cathedral and Durham Castle.
As Saddler Street is narrow, traffic congestion was a common problem that caused several car accidents and pedestrian casualties. Durham was the first city in the United Kingdom to introduce congestion charges.
London
London has the largest congestion zone in the world and was first implemented in 2003. A congestion rate zone has been established in central London where vehicle users are charged within the area.
Charges are applicable during weekdays and are suspended during weekends, holidays and between December 25 and January 1st. System implementation is monitored through automatic vehicle recognition and fees and fines apply.
Stockholm
Stockholm introduced the congestion charge as a test between January and July 2006. The test was a success and the system was implemented in October 2007 with the aim of reducing environmental pollution.
The charge applies to vehicles leaving or entering the central region of Stockholm during the day and during the week.
Other cities with congestion charge systems
Valletta, Milan and Gothenburg implemented congestion charges in 2007, 2012 and 2013, respectively.
Cities introduced charges to reduce traffic congestion, create additional parking spaces within congestion cargo areas, reduce pollution and protect and restore the public transport sector.
Benefits
Proponents of the concept of congestion rates cite benefits such as income generation for local governments and environmental conservation.
Another benefit is the reduction of traffic congestion because drivers will probably avoid unnecessary driving. When introducing congestion charges on urban roads, users are more likely to use alternative means of transportation, such as public transportation, walking or cycling.
This reduces the consumption of fossil fuels and air pollution. Road traffic reduction also reduces noise and delays associated with excess traffic.
Critics
The congestion charging system is criticized by many who believe it is a way to introduce additional taxes to citizens. This applies particularly to low-income travelers because the charges put more pressure on their finances.
While the charges relieve road congestion, they are criticized for changing congestion to other means of transportation, such as trains and public vehicles.
However, the benefits of congestion charges have had a positive impact on the economy and the environment. The concept is being implemented more and more in more urban centers.
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