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Traffic accidents and the London congestion charge

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  • Green, Colin P.
  • Heywood, John S.
  • Navarro, María

Abstract

In a rare effort to internalize congestion costs, London recently instituted charges for traveling by car to the central city during peak hours. Although the theoretical influence on the number and severity of traffic accidents is ambiguous, we show that the policy generated a substantial reduction in both the number of accidents and in the accident rate. At the same time, the spatial, temporal and vehicle specific nature of the charge may cause unintended substitutions as traffic and accidents shift to other proximate areas, times and to uncharged vehicles. We demonstrate that, to the contrary, the congestion charge reduced accidents and the accident rate in adjacent areas, times and for uncharged vehicles. These results are consistent with the government's objective to use the congestion charge to more broadly promote public transport and change driving habits.

Suggested Citation

  • Green, Colin P. & Heywood, John S. & Navarro, María, 2016. "Traffic accidents and the London congestion charge," Journal of Public Economics, Elsevier, vol. 133(C), pages 11-22.
    • Handle: RePEc:eee:pubeco:v:133:y:2016:i:c:p:11-22
    DOI: 10.1016/j.jpubeco.2015.10.005
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    More about this item

    Keywords

    Traffic; Congestion externalities; Pricing; Vehicle accidents;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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