London Congestion Charging Research Articles

Do Economic Incentives Promote Physical Activity? Evaluating the Impact of the London Congestion Charge on Active Commuting and Health

We investigate the role of economic incentives for health behaviour by estimating the impacts of the London Congestion Charge, a major transportation policy which increases the cost of car use within the central London area, on travel-related physical activity and health. Individuals living inside the charging zone are eligible for a 90% discount of the charge. Using a geographical information system (GIS), we analyse full-digit post code information to precisely identify the eligibility of the discount for survey participants in the London Travel Demand Survey 2005-2011. We employ a boundary regression-discontinuity design, and find no evidence that the financial incentive promotes active commuting (cycling and walking) or improves general health status around the border of the congestion charging zone. The result rejects the high aspirations expressed in the social epidemiology and public health literature.

Road Supply in Central London: Addition of an Ignored Social Cost

Studies examining the social cost of driving usually ignore the opportunity cost of having roads in place: the associated land rents. Especially for geographic regions where land is valuable, including the rent costs may even lead governments to close some roads. By using the London congestion charging zone case, a more general long-run social cost curve is calculated with the addition of the rents. Based on the optimal road usage concept, this study found that including the rents in the cost/benefit analysis significantly affects the results and can increase the social cost by up to 200% and decrease the optimal road usage by 40%.

Why do ideas succeed and fail over time? The role of narratives in policy windows and the case of the London congestion charge

The dynamics by which policy ideas rise and fall can be linked to the intimate interactions between discrete physical time dimensions, such as policy windows, and distinctive perceptions of time, particularly the connections made between past, present and future in the form of narratives. Kingdon describes how ‘an idea whose time has come’ can be carried forward in the key policy change instrument of a policy window, but much remains to be understood about the dynamics of windows, including why they apparently open for a relatively short time period, and the significance of the legacy left by windows in terms of their ability to influence later events. The article seeks a greater understanding of these dynamics through an examination of the potentially vital role played by the construction of narratives. The case study is taken from the politically sensitive area of urban road pricing, in the form of the London Congestion Charge.

The effects of congestion charging on road traffic casualties: A causal analysis using difference-in-difference estimation

This paper aims to identify the impacts of the London congestion charge on road casualties within the central London charging zone. It develops a full difference-in-difference (DID) model that is integrated with generalized linear models, such as Poisson and Negative Binomial regression models. Covariates are included in the model to adjust for factors that violate the parallel trend assumption, which is critical in the DID model. The lower Bayesian Information Criterion value suggests that the full difference-in-difference model performs well in evaluating the relationship between road accidents and the London congestion charge as well as other socio-economic factors. After adjusting for a time trend and regional effects, the results show that the introduction of the London congestion charge has a significant influence on the incidence of road casualties. The congestion charge reduces the total number of car accidents, but is associated with an increase in two wheeled vehicle accidents.

Re-assessing the Results of the London Congestion Charging Scheme

The London congestion charging scheme was introduced in 2003 alongside a series of other changes to the transport system, most notably improved bus services. Research on the effects of the scheme usually attributes (often implicitly) all the changes that took place in central London since 2003 to the congestion charging, while the effects of other factors, as well as the effects of trends over time, are not usually (explicitly) considered. This paper revisits the results of the London scheme to examine to what degree observed effects (related to congestion and traffic levels, changes in travel behaviour and air pollution) can be fully or partly attributed to congestion charging. Attention is also given to the amount of revenues the scheme generated. While there is no dispute over the theoretical rationale for introducing congestion charging, the London scheme reveals that questions can be raised with regard to its practical effectiveness.

Estimating the impact of road traffic pricing on residential property values: an investigation of the London congestion charge

A congestion charge was introduced in the centre of London in February 2003. At the outset, the charge was justified by local policy makers on the basis of an expected reduction in car journeys which would result in improvements in environmental amenity, relating to increased journey speeds across all transport modes, reduced accidents and reduced pollution. In so far as this proved to be the case we would expect the improved environmental amenity to be capitalised into increased local residential property values. Simultaneously, vocal 'anti' traffic congestion charge lobbies suggested that the introduction of such a scheme would be detrimental to local residents in terms of increased motoring costs and the inability of road pricing to deliver expected benefits. This paper examines the extent to which these competing influences on residential property values have impacted house prices in Greater London subsequent to the introduction of road pricing.

Central London congestion charging: understanding its impacts

The origins of a road user charging concept for central London and the development of the central London congestion charging scheme are outlined. The paper then explains the objectives and the main features of Transport for London's programme of impacts monitoring of the scheme. It summarises the main results that were obtained. Drawing on the extensive data from the monitoring programme, the paper then compares the patterns of congestion and traffic flows that were observed in the original scheme and in its western extension. This shows how congestion was initially eased as traffic levels were reduced and how it subsequently increased as the effective capacity of the road network was reduced or reallocated. The paper concludes with some reflections on the achievements of the charging scheme.

London's congestion charging scheme and the growth and survival of the minicab sector

Although new businesses are at the heart of economic growth, their survival rates have been rather abysmal. While Frankish et al. (2006) - in their paper Charting the Valley of Death - provided a revised 'proportional hazards model' in their consideration of business survival and closure, Langdon's (2006) research on the business birthrate strategy and economic development highlighted the failures of the public sector and policy makers with regards to micro businesses as a high priority matter. However, none of these studies considered the candidature of the minicab sector as a possible new venture with rather high and largely externally driven, mortality rates. Using in-depth interviews and the narratives of minicab operators in London, we evaluate the claim that London's congestion charging scheme introduced on 17 February 2003 has been a blessing to this latent small business sector. Our primary focuses is to evaluate the impact of London congestion charging scheme on the acclaimed uncharged fares category (i.e., minicabs in this case). We conclude the paper by suggesting that this sector is worthy of consideration in any impact analysis and/or assessment of the charge scheme - especially as they 'chart their valley of death'.

Regional Road Pricing Comparisons

In this study, we compared various examples of road pricing projects around the world. In particular, we made a case study of road pricing projects in the cities of United Kingdom, Norway and Singapore. We then imposed a hypothetical road pricing system in Sapporo on the basis of revenue to help cover the city's spiralling winter road maintenance costs. To this end, we designed two different winter-time road pricing systems; a bounded cordon toll and a mileage charge. The bounded cordon toll consisted of an area based road pricing system similar to London's Congestion Charging System (CCS). The mileage system on the other hand charged a set amount for the mileage travelled during the winter season. In order to determine the acceptability and the willingness of residents to pay for the schemes, a survey was conducted with random samples taken from the centre and outer suburbs. Findings suggest that an area based cordon toll is the more acceptable of the two. Inner city residents were more sensitive to road pricing changes, but other factors such as car ownership and accessibility to alternative forms of transportation also play a role.

Testing a reliable in-vehicle navigation algorithm in the field

The results of a field experiment carried out to assess the accuracy and efficiency of a new in-vehicle navigation algorithm, whose aim is to incorporate and consider travel time reliability and route the guided vehicle along uncongested roads, in the absence of real-time traffic information are presented. Using historical travel time profiles deduced from floating vehicle data, the algorithm is implemented in a purpose-developed software tool and tested in the London Congestion Charging Zone. The experiment consists of driving a vehicle along routes computed by the algorithm and comparing the outcome with that of a conventional navigation system installed in a second vehicle. The results indicate that the new algorithm outperforms the conventional system in most cases, thus suggesting that it is a step forward towards a more intelligent navigation system.

Vision for industry

Vision systems are used on everything from controlling the semiconductor production process to number plate recognition for the London congestion charge, but lack of appropriate training by universities is seriously damaging future development and application of the technology.

Air pollution and mortality benefits of the London Congestion Charge: spatial and socioeconomic inequalities

Objectives:To alleviate traffic congestion in Central London, the Mayor introduced the Congestion Charging Scheme (CCS) in February 2003. We modelled the impact of the CCS on levels of traffic pollutants,...

London Congestion Charging

London Congestion Charging

Modeled Air Pollution and Mortality Benefits of the London Congestion Charge: Spatial and Social Inequalities

Modeled Air Pollution and Mortality Benefits of the London Congestion Charge: Spatial and Social Inequalities

The effect of the London congestion charge on road casualties: an intervention analysis

The introduction of the congestion charge in central London on the 17th of February, 2003, led to a reduction in congestion. One factor that has not been fully analysed is the impact of the congestion charge on traffic casualties in London. Less car travel within the charging zone may result in fewer traffic collisions, however, as the number of pedestrians, cyclists, and motorcyclists increased after the introduction of the congestion charge, the number of traffic casualties associated with these groups may also have increased. Reductions in congestion can also lead to faster speeds. Therefore, there could be increases in injury severity for those crashes that do occur. An intervention analysis was conducted to investigate the effect of the congestion charge on traffic casualties for motorists, pedestrians, cyclists, and motorcyclists, both within the charging zone and in areas of London outside the zone. This was done for killed and serious injuries (known as KSI in British terminology) and for slight injuries to examine whether there were any shifts in severity outcomes. Our results suggest no statistically significant effect for total casualties in London, but within the charging zone there has been a statistically significant drop in motorist casualties, and possibly an increase in cyclist casualties. There is an associated effect of an increase in casualties of motorcyclists and cyclists in some areas outside the charging zone, suggesting that changes in the design of the congestion charge may be needed to achieve reductions in casualties.

The accuracy of regulatory cost estimates: a study of the London congestion charging scheme

AbstractThis paper considers the accuracy of regulatory cost estimates using the London congestion charging scheme as a case study. In common with other regulations, ex ante estimates of the direct costs of the scheme were produced by the regulator, Transport for London. Reviews of a number of environmental and industrial regulations have shown that ex ante costs tend to exceed the ex post (or outturn) costs. This study finds that while Transport for London moderately overestimated the total costs of the scheme (by 16%) there was a significant overestimate of chargepayer compliance costs (by 64%). The main reasons for this were greater than expected reductions in traffic and unanticipated technological innovation. As the compliance cost is essentially the cost of transacting payment of the charge, these results have wider implications for other similar regulations. One example is the proposed national road user charging in the UK, where it could reasonably be expected that the ex post cost of compliance will again be lower than the ex ante estimate, and that compliance costs will continue to reduce over time. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.

Congestion charging in London: the policy and the politics

This book describes the introduction of the congestion charge in London, explaining the rationale for road pricing, ways of implementation, traffic restraint before the Mayor of London, experience in other parts of the World, the establishment of the Greater London Council, the Mayor's Transport strategy for London, the Mayor's congestion charging scheme, implementation, scrutiny of the scheme by the London Assembly, attitudes of various stakeholders, the first year of operation, lessons learned from the implementation of congestion charging, and the future, including the possibility of a national road pricing scheme in the UK.

The London Congestion Charge

By the 1990s, the average speed of trips across London was below that at the beginning of the twentieth century—before the car was introduced—and by the end of that decade, public concern over levels of traffic congestion was high. In early 2003, London imposed a congestion charge—a daily charge for driving or parking a vehicle on public roads within central London between the hours of 7:00 a.m. and 6:30 p.m. on workdays. Traffic congestion has declined substantially, and the program is largely popular. This article describes the origins of the London congestion charge, how it overcame practical and theoretical difficulties, and what effects it has had. The introduction of the London congestion charge is, in important respects, a triumph of economics. It represents a high-profile public and political recognition of congestion as a distorting externality and of road pricing as an appropriate policy response.

Road pricing: lessons from London

This paper assesses the original London Congestion Charging Scheme (LCCS) and its impacts, and it simulates the proposed extension which will include most of Kensington and Chelsea. It also touches upon the political economy of the congestion charge and the increase of the charge from £5 to £8 per day. The possibility of transferring the experience to Paris, Rome and New York is also discussed. The LCCS has had positive impacts. This was despite the considerable political influences on the charge level and location. It is difficult to assess the impacts of the increase of the charge from £5 to £8, which took place in July 2005, because no data have yet been released by Transport for London. The proposed extension of the charging zone does not seem to be an efficient change on economic grounds, at least for the specific boundaries, method of charging and level of charging that is currently planned. Our benefit cost ratios computed under different assumptions of costs and benefits are all below unity. Overall, the experience shows that simple methods of congestion charging, though in no way resembling first-best Pigouvian taxes, can do a remarkably good job of creating benefits from the reduction of congestion. Nevertheless, the magnitude of these benefits can be highly sensitive to the details of the scheme, which therefore need to be developed with great care.

The impact of the London congestion charging scheme on the generalised cost of car commuters to the city of London from a value of travel time savings perspective

This paper shows that the impacts of the London Congestion Charging Scheme should not be analysed from the standard approach to value of travel time savings. This will invariably lead to the mistaken conclusion that drivers who value their travel time savings below the £5 congestion charge will be regarded as losers from the Scheme. The use of a simple expression of generalised costs leads to different conclusions. First, a motorist who continues to drive but values the time savings of the Scheme less than £5 can still gain from the scheme, if the generalised cost post-charging is lower than the generalised cost pre-charging. Second, a motorist who switches to the bus can still gain from the scheme. Since the bus travel time post-charging will typically be lower than the bus travel time pre-charging, it is possible that the generalised cost of a trip by car pre-charging will be higher than the generalised cost of a trip by bus post-charging, even after taking into consideration the inconvenience of switching.