London Congestion Fee

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London Congestion Fee

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

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