Transcript THIS PRESENTATION - Transport Learning

CONGESTION CHARGING AND PRICING
CONGESTION
CHARGING AND
PRICING
Drawing by Ruairi O Brien
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topics
CONGESTION CHARGING AND PRICING
Where are we now?
What’s road user charging (RUC)?
Why apply RUC? Economic theory
What are we trying to achieve with RUC?
How does RUC achieve it?
Some examples – Singapore, Trondheim, London,
Stockholm, Italy, Znojmo
How to implement RUC – maximising the chances
Generating RUC options for your own town/city
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Where are we now?
CONGESTION CHARGING AND PRICING
long delays due to congestion
economic lost (time, energy)
air pollution and noise cause health damage
shortage of parking place
unpleasant street environment-cities
severance of social networks
SO…
NO for increasing capacity by building new roads-due to induce trafficlong been out of transport policy agenda
YES for balance-travel/traffic demand management
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What’s RUC?
CONGESTION CHARGING AND PRICING
Simply: charging drivers for their road use/driving
Aren’t they charged enough?
• purchase tax, road taxes, compulsory insurance, petrol tax, etc.
NO
Marginal cost of driving?
Supermarket parallel!
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Economic theory suggests
CONGESTION CHARGING AND PRICING
the cost borne by the user of roads should reflects the sum of the
marginal costs they impose on:
infrastructure provider
• cost for operation and road damage
other road users
• cost for congestion, risk of accidents
outside transport system
• cost for accident externalities and environmental damage
RUC adds these marginal costs onto real cost of driving - drivers
take more economically rational travel decisions - traffic volumes
reduce
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What do we achieve?
CONGESTION CHARGING AND PRICING
reduced congestion-faster car and public transport journeys, safer cycling and
walking,…...
reduced environmental pollution-breathable air, quieter streets, less green
house effect,…...
revenue -provides frequent, reliable, comfortable public transport, better cycling/
walking environment, better roads, safety measures, …...
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Acceptability
CONGESTION CHARGING AND PRICING
It’s a problem! - huge political sensitivity
Novelty
Not wanting to pay for what’s been free
before
Equity issues
Conventional measures - more popular
But acceptability increases if cash spent on
transport and environment
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Has it been tried somewhere?
CONGESTION CHARGING AND PRICING
Singapore Area Licence Scheme in 1975
Bergen Cordon Crossing in 1986
Oslo Cordon Crossing in 1990
Trondheim Cordon Crossing in 1991
Singapore Electronic Road Pricing -combination of cordon
crossing and point crossing scheme in 1998
London Area License Scheme 2003 (to be extended 2006)
Stockholm cordon crossing 2006
Major Italian cities – area licences
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What is an RUC scheme like?
CONGESTION CHARGING AND PRICING
Principles of charging
• Area licence
• Cordon
• Distance/speed based
• Charge and time of charging
• Who is charged; and exemptions
For what is revenue used?
Administration/technology - how it is operated
• Charging and billing
• Enforcement
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Singapore: demand management
CONGESTION CHARGING AND PRICING
ALS (1975)
ERP (1998)
Rush hour
traffic reduced
by 45%
Daily
Traffic
volumes
reduced by
20-24%
traffic speeds
increased by
20%
accidents fell
by 25%
speeds from
40 to 45
kmh
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Singapore- charging principles
CONGESTION CHARGING AND PRICING
area: CBD-restricted zone and some expressways
time: initially morning peak, later covered evening peak, thereafter included offpeak, EP operates during working hours including Saturday till 2 pm
type: initially Area Licensing then inbound Cordon Crossing
level of charge: $3 for a daily, $2 for off-peak licence, ERP - varies
charging entity: vehicles
variations: time of day, type of vehicle, location (ERP)
Technology – on-board meter and smartcard, debited when vehicle passes
charging point
Charges varied every 3 months to keep traffic level of service at same level
Enforcement – camera/ANPR
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Trondheim: infrastructure investments
CONGESTION CHARGING AND PRICING
Many new
roads, such
as new
airport road,
tunnels
New bypass
Cycling paths
environmental
measures
improved
public
transport
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Trondheim - charging principles
CONGESTION CHARGING AND PRICING
Area: built area including airport road
time: operates during working hours
type: inbound Cordon Crossing
level of charge: €3 for crossing
charging entity: vehicles
variations: time of day, type of vehicle, location
(EP), maximum use per period
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London scheme
CONGESTION CHARGING AND PRICING
Plans for many years
Legal basis - 1999 London Government Act and 2000
Transport Act
Area licence scheme for central area (21 km2), intro Feb
2003
Up to 50,000 vehicles per hour into this area
Planned to raise £130 million per year – in fact £70 million
Revenues hypothecated for 10 years
Exemptions - residents (90% discount)
Many payment methods, ANPR and foot patrol enforcement
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London Scheme area
CONGESTION CHARGING AND PRICING
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London Scheme 2
CONGESTION CHARGING AND PRICING
Congestion inside zone reduced by 30%
Traffic levels reduced by 18%
30% reduction in number of cars and 65,000 fewer car
movements
20% increase in movements by buses coaches and taxis
Increase of 29,000 bus passengers entering zone during
morning peak
Bus reliability and journey times improved - additional time
passengers wait at bus stops caused by service delays or
missing buses cut by 20% across all of London and by 30%
in and around charging zone
Some debate about retail impacts
Little diversion of traffic around zone
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Netherlands
CONGESTION CHARGING AND PRICING
Urban cordons planned on major roads in Randstad
2.5 Euro charge would decrease peak traffic on
motorways by 35%
First step towards kilometer-heffing
Four Randstad cities very unkeen (economic
development) but bribed by Dutch Ministry of
Transport
Then a dead leader was elected and it all went down
the drain, for now
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Implementing RUC
CONGESTION CHARGING AND PRICING
To maximise chances of RUC scheme being implemented, need:
• Agreement on objectives and that there is a problem to solve
• Political champion
• Resources – people and money
• (Preferably) only one decision making body
• Single implementing agency
• Ability to improve alternatives (widely) before pricing implemented
• Straightforward and supportive enabling legislation
• Effective marketing/communication strategy, from the start
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Conclusion
CONGESTION CHARGING AND PRICING
Road pricing - can it ever be acceptable?
Norway, Durham, London show it can be
Key elements in success:
• Perception of problem
• Business community support
• Political consensus OR champion (e.g. Ken)
• Simple scheme, at least to start with
• Hypothecation of revenues
• Obvious up-front investment in alternatives
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Useful references
CONGESTION CHARGING AND PRICING
http://www.europrice-network.org
http://www.progress-project.org
http://www.imprint-eu.org/seminars.htm
• Following papers by
• Begg (nice pictures)
• Chin (Singapore)
• Baker (acceptability)
• Can all be downloaded
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