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Road pricing means that motorists pay directly for driving on a particular roadway. Road pricing can be applied at various levels, such as a bridge or a tunnel, a roadway section, roadways in a corridor, all roads in an area (such as a central business district), or roadways at regional centres. Road pricing schemes targeting roads in an area take different forms. Area pricing imposes a charge on the actual road use in cities. Congestion pricing refers to road pricing used as a demand management strategy to reduce traffic congestion. Cordon pricing is equivalent to an entrance fee into the city.
Objectives:
Common policy objectives of road pricing can be categorised as:
- to manage congestion by influencing the location and time of demand, and inducing shifts towards more sustainable transport modes such as public transport,
- to reduce negative environmental effects from traffic, and/or
- to raise revenue.
From the economist’s view, road pricing aims to internalise the externalities generated by road use.
Applicable geographic area and socio-economic conditions (where):
1. Geographic conditions:
- Road pricing can be applicable in urban areas where congestion and/or air pollution are perceived as serious problems
2. Socio-economic conditions
- Strong political will to introduce road pricing is necessary
Stakeholders:
- by whom: Road pricing is usually implemented by public or private transport agencies, and local authorities. Implementation may require the approval of other levels of government.
- for whom: motorists, professional drivers (truck and taxi drivers), and residents of the areas
Time span (by when):
Introduction of area pricing or cordon pricing requires a period of planning of the scheme, technology, and participation, since the scope of those schemes are areas, rather more complex than one road. In London’s case it took about three years from the election of the mayor to the introduction of congestion charging. In the case of road pricing for point, facility, and corridor, the required time for preparation can be shorter than area and cordon pricing.
Expected impacts:
It is expected that road pricing will reduce the level of congestion and environmental damage, brought about by a reduction in traffic to a more manageable level. It also produces revenue for the government.
Remarks:
APEIS/RISPO Strategic Policy Options (SPOs) Database:
http://www.iges.or.jp/cgi-bin/rispo/index_spo.cgi
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