Policy: Overview

Although various road-pricing schemes exist throughout the world, the following case evidence focuses on area-wide pricing schemes such as those implemented in London and Singapore. Key congestion schemes are summarized below:

• Since 1975, Singapore has operated a road-pricing scheme with Electronic Road Pricing (ERP) introduced in 1988. The ERP scheme reduced congestion in the area by 13% and increased average speeds up to 20% (CfIT, 2006a).

• Between 1991 – 2005, Trondheim, Norway operated a Congestion charge reducing traffic by 10% (CfIT, 2006a).

• In February 2003, the Central London Congestion Charging scheme was introduced reducing traffic in the central charging zone by 16% and congestion by up to 30%. A western extension to the existing charging zone was introduced in early 2007 (CfIT, 2006a).

• In July 2006, Stockholm completed a six-month trial of Road Pricing achieving on average a 22% reduction in traffic (OECD, 2008). Subsequently, a referendum indicated that 51% of residents supported a permanent Road Pricing scheme leading to full implementation in August 2007 (CfIT, 2006; OECD, 2008).

Other cities that have conducted feasibility studies or reveal other signs of plans for congestion related schemes are listed along with potential dates for implementation include: Milan (2007), Shanghai (2008-2010), Copenhagen (2009), Prague (2010), Cardiff (2010), Auckland (2015-2020), and the Netherlands (2012 national scheme) (Blythe, 2005; CfIT, 2006; CfIT, 2006a; EEA, 2008). The following provides more in-depth case analysis of London, Stockholm and Singapore.