Congestion Pricing

Congestion pricing is a market-based policy instrument that, at its most basic, requires road users to pay for using a stretch or road or for passing through a designated charging zone. Congestion pricing may also be referred to as road pricing or congestion charging. The terminology may differ according to the country using the term and may also be influenced by factors such as public acceptability and the aims of the pricing scheme in question.

There are a number of reasons why congestion pricing might be introduced: first, for environmental reasons—to reduce the emissions of greenhouse gases, or local air pollution; second, to ease the traffic flow, especially in cases where congestion is considered to be having an adverse effect on the local economy; third, to ...