Download - London Congestion Fee
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London Congestion Fee
By: Ben Wu, Grace Ngau
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What is the problem?
Clogged up roads, threatens businesses.
London suffered the worst traffic congestion among Europe.
Drivers in central London spent 50% of their time in queues
Morning, the equivalent of 25 busy motorway lanes of traffic tried to enter central London
London lost between £2-4 million every week in terms of lost time caused by congestion
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Background info
What is congestion charge? The Mayor's election proposal
included a pledge to tackle congestion.
the scheme was fine-tuned in order to meet demand.
In February 2002 February 2003. In February 2007
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How does it work?
a £8 daily Congestion Charge. Aims no tollbooths or barriers around
the congestion charging zone. Many ways of paying Exceptions Penalty Charge
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Does it internalize the externality?
YESSSSSSSSSS! Evidence:
– Traffic entering the original charging zone remains 21 per cent lower
– Traffic entering the Western Extension has fallen by 14 per cent
– There has been a six per cent increase in bus passengers during charging hours
– There has been a 12 per cent increase in cycle journeys into the Western Extension.
– £137m being raised, in the financial year 2007/08
Doesn’t work all the time
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London Congestion Charge Report
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London Congestion Charge Report
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So has the charge achieved its aims?
YES– Levels of traffic in London have
fallen sharply at a time when overall car ownership is rising
– More people are now using environmentally-friendly transport such as buses and Tube trains
– Traffic congestion in central London is not as bad as it was a decade ago
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So has the charge achieved its aims?
NO– Business leaders say that the
congestion charge has adversely affected the takings of retailers
– The capital's streets have not been transformed – despite the reduction in traffic jams
– Not as much as cash has been raised from the congestion charge as was originally hoped
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MODEL
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Bibliography
http://en.wikipedia.org/wiki/London_congestion_charge http://www.citymayors.com/report/congestion_charge.html http://www.bbc.co.uk/london/travel/congestion/ http://www.london.gov.uk/mayor/congest/ http://www.tfl.gov.uk/roadusers/congestioncharging/
default.aspx http://www.independent.co.uk/news/uk/home-news/the-big-
question-has-the-congestion-charge-been-effective-in-reducing-londons-traffic-781505.html
http://www.tfl.gov.uk/roadusers/congestioncharging/