Road pricing (congestion charging)
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1 Road pricing (congestion charging) page 1 Road pricing (congestion charging) Introduction Traffic congestion occurs when there is excessive demand for road space and therefore mainly affects urban areas. In New Zealand, road users pay fuel excise duty, road user charges, motor vehicle registration and licensing fees. However, many externalities are not totally accounted for, including environmental costs, crash costs and congestion costs. As a result, the costs paid by road users fall well short of covering the true cost of providing, maintaining and using such infrastructure. This is especially true on congested roads and at peak times. Congestion in the Auckland region is a major problem in terms of lost income, time and pollution. It is estimated to cost the New Zealand economy nearly $1 billion per year, or about 1 percent of New Zealand s gross domestic product (GDP). Objective Congestion charging seeks to charge for the full economic, environmental and social costs of road use, and places more of the true cost of driving back onto road users. It has the purpose of reducing congestion, but it can also raise substantial revenue. Congestion charging can be seen as a tool that can be used to make road user charges more accurately reflect the total costs incurred. Benefits Congestion reduction Economy Environment Increased appeal of alternative modes User pays Revenue Public health Better use is made of road capacity, therefore reducing congestion. Economic benefits from reduced congestion include more efficient movement of freight, lower overall travel costs and more consistent travel costs. Environmental benefits include improved air quality, reduced greenhouse gases and improved water quality. People are encouraged to use more sustainable modes, such as walking, cycling and public transport, as these modes become more appealing. Congestion charging ensures that the people who use the roads pay for their use. Money raised from congestion charging can be spent on public transport. Increased use of active modes improves public health.
2 Road pricing (congestion charging) page 2 Tools for congestion charging Zonal charge A Zonal Charge is a way of charging for access to a particular zone. A Zone can be stand alone or there can be a number of adjoining zones within a transportation system. This includes area schemes that charge all vehicles moving across a defined area or cordon, e.g. London, Stockholm and Singapore. Zonal Charge scheme reduce congestion by discouraging vehicle use into a particular area. The Zonal charge reduces demand for travel in private vehicle and typically increases demand for other modes of transportation. Traffic in Stockholm reduced by 22 percent following a modest zone toll.
3 Road pricing (congestion charging) page 3 Tools for congestion charging continued Fixed length link charge Road tolls are common and usually in the form of a fixed length charge. Payment is made for the use of a length of the transport network. This is usually in the form of toll roads, eg Melbourne City Link, French Autoroutes, M6 Toll (see the section on Toll Roads for further information.) Electronic toll gantries on Melbourne City Link, Victoria, Australia
4 Road pricing (congestion charging) page 4 Tools for congestion charging continued Distance charging Distance charging charges motorists for the distance they have travelled. Distance charging can take several forms, ranging from crude measurements to more accurate position determination. Distance charging is already being implemented in some countries. The Swiss lorry charging scheme calculates distance travelled using tachograph readings. However, tachographs are not present in cars and there is not yet a device available that provides comparable robustness. Another example is the German lorry charging scheme, which calculates distance travelled according to the distance between two junction points on a motorway. Cell-based charging works on the basis of determining when a vehicle is passing through square cells, of a set size, as an approximation for distance charging. Each cell has an applicable tariff, usually set by time of day. The On Board Unit (OBU) determines how many cells a vehicle passes through and this data is then uploaded to an off-board system. Comprehensive distance based charging This system would use satellite position fixes to determine a vehicle s position and then compare this with a stored map of charge zones, charged road sections or specific charge points. This information would then be used to determine charges incurred per km against a known tariff table. The unit would determine the distance travelled by place and time of day. Where to apply these tools Large Urban Town Rural metro area Zonal charge Fixed length link Distance charging This table is an indication only. Individual projects should consider the unique features of the local environment.
5 Road pricing (congestion charging) page 5 Case study London, United Kingdom Background The central London Congestion Charging scheme began operation in February 2003 and was extended in February The principal aim of the scheme is to reduce congestion in central London by encouraging drivers to switch from private car use to other, more sustainable modes of transport. Prior to the congestion charge being implemented, London suffered some of the worst traffic congestion in the UK and Europe: Every weekday morning the equivalent of 25 busy motorway lanes of traffic tried to enter central London and it was estimated that London was losing between 2 4 million every week in terms of lost time caused by congestion (Transport for London, 2002). The city of London has a population of 7.5 million. How the scheme operates During its hours of operation, drivers of vehicles are required to pay a standard daily charge of 8 to travel within the Congestion Charging zone. This is subject to a number of conditions, discounts and exemptions, eg emergency services do not need to pay the charge. The scheme works by having a network of cameras monitoring every entrance to and exit from the Congestion Charging Zone. The cameras provide digital images of the whole vehicle to automatic number plate recognition software, which reads and records each number plate. Improved public transport Leadership As part of the Mayor s transport strategy, congestion charging was also accompanied by a range of measures designed to make public transport easier, cheaper, faster and more reliable. Transport for London (TfL) brought in extra buses to the capital s streets, introducing more routes and improving the frequency and reliability of other routes. The then Mayor of London, Ken Livingston, was a key instigator of the scheme and his leadership helped keep the scheme politically acceptable. The Mayor included proposals for a scheme to reduce congestion in his election manifesto in Following his election, he consulted on and amended the details of the scheme in order to meet demands from businesses, residents and a large number of other interested groups. Traffic reductions Following its introduction in 2003, congestion was reduced in the congestion zone and traffic entering the zone was reduced by around 20 percent. TfL estimates that the initial traffic and congestion reductions arising from the original central London congestion charging scheme led to overall CO 2 reductions of 16 percent inside the charging zone. Alternative fuels The congestion charging scheme has led to an 8 percent reduction in emission of oxides of nitrogen (NOx) and a 6 percent reduction in fine particulate matter (PM10). While the main objective of the scheme remains the reduction of congestion and modal shift away from cars, the scheme also provides an incentive for drivers who still continue to drive in the zone to choose less polluting vehicles, as there are exemptions for certain types of fuel-efficient car.
6 Road pricing (congestion charging) page 6 Case study Stockholm, Sweden Background The Stockholm trials Stockholm has a population of 800,000. It is a city divided by several bodies of water and all through-traffic drives past the central city over several bridges. There are high traffic volumes on the two main thoroughfares, the Central Bridge and the Essingeleden motorway. The Essingeleden is part of European route E4, and is the most heavily trafficked road in Sweden, with about 150,000 vehicles per day (this motorway is not part of the charging scheme). On 2 June 2003, the Stockholm City Council adopted a majority proposal to conduct a trial implementation of congestion charging. The trials started on 22 August On 3 January 2006, the trial implementation of a congestion tax started. The trials concluded by 31 July This included expanded public transport services and more Park & Ride facilities near city access roads. A referendum on the continued implementation of congestion charging was held in conjunction with the general election on 17 September In October 2006, the Swedish government declared that the Stockholm congestion charge was to be introduced permanently during the first half of Core objectives of the scheme The core objectives for the full-scale trial were to: reduce traffic to and from the city by percent during rush hour reduce emissions of carbon dioxide, nitric oxide and particulate matter provide a better city environment provide more resources for public transport. How the scheme operates The congestion charge zone includes the whole of the Stockholm city centre and is 34.5 square kilometers in area. The congestion tax is applied to vehicles on both entry to and exit from the zone. The amount to pay depends on the time of the day the driver enters or exits the congestion tax area. The payment gates are equipped with number plate recognition cameras. The tax may be paid directly via the internet or over the telephone by credit card, or alternatively it can be paid at convenience stores in the city. The tax is not paid on Saturdays, Sundays, public holidays or the day before public holidays, nor during the night-time period (18:30 06:29). The maximum amount of charge per vehicle per day is 60 SEK (around NZ$12). Exemptions to the charge include emergency vehicles, buses, diplomatic vehicles, disabled persons' vehicles, military vehicles, hybrid or electric cars, motorcycles and mopeds, and foreign-registered vehicles. Traffic reductions The biggest traffic decline, as a result of the congestion charge, was in vehicles passing over the charge cordon, which includes all approaches to the inner city. For an entire day s charge period (24 hours), the decline was about 22 percent, equivalent to 100,000 passages over the charge cordon.
7 Road pricing (congestion charging) page 7 Case study Singapore Background Singapore Area Licensing Scheme The islands of Singapore, located in southeast Asia, have a population of 4.68 million. The country has an extremely constricted land area and congestion is seen as impeding economic growth. The introduction of congestion pricing is one of a number of anti-congestion policies implemented in Singapore since the 1970s. The first congestion charging scheme, known as the Area Licensing Scheme (ALS), was introduced in the restricted zone situated in Singapore s CBD in The scheme was subsequently extended to major expressways with the Congestion Charging Scheme. The ALS covered the more congested parts of the CBD, designated as the restricted zone. When the ALS first started, the restricted zone had an area of 610 hectares; but over the next 14 years, it increased to 725 hectares because of the inclusion of areas that had turned commercial in nature and the availability of reclaimed land at the seafront. Technology for an electronic congestion charging system was emerging during the early 1990s. The new system allowed more frequent changes to be made to the congestion charges, so that it can optimise road usage. Charges are levied on a per pass basis and rates are based on the traffic congestion levels at the pricing points. Charges vary according to the class of vehicle, and buses and emergency vehicles are exempt. Annual revenue from the scheme is $80 million (operating costs are $16 million). Objectives of the scheme The main objective of the pay-as-you-use system was to optimise road usage by making motorists more aware of the true cost of making a journey by car. This would therefore reduce congestion. Secondary objectives were to: encourage use of public transport or car pooling encourage use of alternative routes and times of travel provide a smoother ride with more assured journey times for drivers who choose to pay the charge. Traffic reductions Traffic in the zone reduced by nearly 25,000 cars during peak times and average traffic speed increased by approximately 20 percent. Traffic in the zone reduced by 13 percent during charging periods. Total vehicles using the roads in the restricted zone have reduced from 270,000 to approximately 235,000. Car pooling has increased and fewer solo motorists drive into the restricted zone. Many vehicle trips have shifted from peak to non-peak times. The scheme has been effective in maintaining a speed range of 45 65km/h for expressways and 20 30km/h for major roads.
8 Road pricing (congestion charging) page 8 Complementary measures Public transport The success of any congestion charging scheme targeted at beating congestion is improved when there is an efficient public transport system. Good public transport provision will mean that people are able to choose if they will pay the charge or, alternatively, take public transport for their journey. What other policies will this address? Congestion Pollution Urban liveability Reducing congestion results in many economic benefits, such as fewer time delays for freight deliveries and ensuring that staff arrive at employment on time. Congestion charging has the effect of reducing private car use. This results in a number of environmental benefits, such as a reduction in CO 2, NO 2 and particulate matter. Reduced air pollution has a number of benefits for health. Having fewer cars on the road also results in improving the liveability of urban environments. Further information Ministry of Transport (2006) Tackling congestion in Auckland: Auckland road pricing study: Summary document. Wellington: MoT. (accessed 22 January 2010) London Congestion Charging (accessed 22 January 2010) Swedish Transport Agency. Congestion tax (accessed 22 January 2010) Singapore congestion charging (accessed 22 January 2010) Department for Transport UK Congestion charging Feasibility Study (accessed 22 January 2010) Commission for Integrated Transport. World review of congestion charging (accessed 22 January 2010)
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