Policy: Emissions Congestion Charging

In the UK, AEA (2007) suggest that a key policy synergy is between emissions related congestion charging and increasing the market share for low emission cars in band A and B. The combination of emissions related congestion charge and VED incentives may accelerate the decline in sales and use of high emitting band G vehicles. In doing so, AEA (2007) have proposed a specific congestion charge in central London directly linked to VED banded vehicles structured as follows:

• Vehicles emitting under 120 gCO₂/km (VED bands A and B) and that comply with the Euro 4 air quality emissions standard would be eligible for a 100% discount.
• Vehicles emitting between 121 – 225 gCO₂/km (VED bands C – E, or band F) are liable for a £8.00 charge. Vehicles in band A or B that does not meet Euro 4 emissions standards would also be liable for the same charge.
• Vehicles emitting over 226 gCO₂/km (band G) would be subject to a £25.00 charge. Band F vehicles with emissions over 226 gCO₂/km registered between March 1, 2001 and March 23, 2006 would be liable for the same charge.