IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v13y2006i1p22-33.html
   My bibliography  Save this article

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

Author

Listed:
  • Santos, Georgina
  • Bhakar, Jasvinder

Abstract

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.

Suggested Citation

  • Santos, Georgina & Bhakar, Jasvinder, 2006. "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," Transport Policy, Elsevier, vol. 13(1), pages 22-33, January.
  • Handle: RePEc:eee:trapol:v:13:y:2006:i:1:p:22-33
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967-070X(05)00089-2
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brownstone, David & Small, Kenneth A., 2005. "Valuing time and reliability: assessing the evidence from road pricing demonstrations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 279-293, May.
    2. Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
    3. Hensher, David A. & Goodwin, Phil, 2004. "Using values of travel time savings for toll roads: avoiding some common errors," Transport Policy, Elsevier, vol. 11(2), pages 171-181, April.
    4. Hau, Timothy D., 1992. "Economic fundamentals of road pricing : a diagrammatic analysis," Policy Research Working Paper Series 1070, The World Bank.
    5. Georgina Santos & Laurent Rojey, 2004. "Distributional impacts of road pricing: The truth behind the myth," Transportation, Springer, vol. 31(1), pages 21-42, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Koning, 2010. "The Social Cost of Road Congestion in Ile-de-France Region (and France): Empirical Evidences from the Paris Ring-Road," Working Papers halshs-00467888, HAL.
    2. Marco Percoco, 2016. "The impact of road pricing on accidents: a note on Milan," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 343-352, October.
    3. Percoco, Marco, 2014. "The impact of road pricing on housing prices: Preliminary evidence from Milan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 188-194.
    4. Percoco, Marco, 2014. "The effect of road pricing on traffic composition: Evidence from a natural experiment in Milan, Italy," Transport Policy, Elsevier, vol. 31(C), pages 55-60.
    5. Marco Percoco, 2015. "Heterogeneity in the reaction of traffic flows to road pricing: a synthetic control approach applied to Milan," Transportation, Springer, vol. 42(6), pages 1063-1079, November.
    6. Martin Koning, 2010. "The Social Cost of Road Congestion in Ile-de-France Region (and France): Empirical Evidences from the Paris Ring-Road," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00467888, HAL.
    7. Ding, Hongliang & Sze, N.N. & Li, Haojie & Guo, Yanyong, 2021. "Affected area and residual period of London Congestion Charging scheme on road safety," Transport Policy, Elsevier, vol. 100(C), pages 120-128.
    8. André de Palma & Robin Lindsey, 2009. "Traffic Congestion Pricing Methods and Technologies," Working Papers hal-00414526, HAL.
    9. Ian W.H. Parry, 2009. "Pricing Urban Congestion," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 461-484, September.
    10. Elvik, Rune & Ramjerdi, Farideh, 2014. "A comparative analysis of the effects of economic policy instruments in promoting environmentally sustainable transport," Transport Policy, Elsevier, vol. 33(C), pages 89-95.
    11. Souche, Stéphanie & Raux, Charles & Croissant, Yves, 2012. "On the perceived justice of urban road pricing: An empirical study in Lyon," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1124-1136.
    12. Rotaris, Lucia & Danielis, Romeo & Marcucci, Edoardo & Massiani, Jérôme, 2010. "The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost-benefit analysis assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 359-375, June.
    13. Morton, Craig & Lovelace, Robin & Anable, Jillian, 2017. "Exploring the effect of local transport policies on the adoption of low emission vehicles: Evidence from the London Congestion Charge and Hybrid Electric Vehicles," Transport Policy, Elsevier, vol. 60(C), pages 34-46.
    14. Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1), pages 1-17.
    15. Azari, Kian Ahmadi & Arintono, Sulistyo & Hamid, Hussain & Davoodi, Seyed Rasoul, 2013. "Evaluation of demand for different trip purposes under various congestion pricing scenarios," Journal of Transport Geography, Elsevier, vol. 29(C), pages 43-51.
    16. Vieira, João & Moura, Filipe & Manuel Viegas, José, 2007. "Transport policy and environmental impacts: The importance of multi-instrumentality in policy integration," Transport Policy, Elsevier, vol. 14(5), pages 421-432, September.
    17. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, Open Access Journal, vol. 12(18), pages 1-39, September.
    18. Ahmadi Azari, Kian & Arintono, Sulistyo & Hamid, Hussain & Rahmat, Riza Atiq O.K., 2013. "Modelling demand under parking and cordon pricing policy," Transport Policy, Elsevier, vol. 25(C), pages 1-9.
    19. Xie, Litian & Olszewski, Piotr, 2011. "Modelling the effects of road pricing on traffic using ERP traffic data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(6), pages 512-522, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Button, Kenneth, 2004. "1. The Rationale For Road Pricing: Standard Theory And Latest Advances," Research in Transportation Economics, Elsevier, vol. 9(1), pages 3-25, January.
    2. Georgina Santos & Erik Verhoef, 2011. "Road Congestion Pricing," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 23, Edward Elgar Publishing.
    3. Glavic, Drazenko & Milos, Mladenovic & Luttinen, Tapio & Cicevic, Svetlana & Trifunovic, Aleksandar, 2017. "Road to price: User perspectives on road pricing in transition country," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 79-94.
    4. Seiji S. C. Steimetz, 2009. "White‐Knuckle Externalities," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 304-316, April.
    5. Li, Zheng & Hensher, David A., 2012. "Congestion charging and car use: A review of stated preference and opinion studies and market monitoring evidence," Transport Policy, Elsevier, vol. 20(C), pages 47-61.
    6. Kockelman, Kara M. & Kalmanje, Sukumar, 2005. "Credit-based congestion pricing: a policy proposal and the public's response," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 671-690.
    7. Haoran He & David Neumark & Qian Weng, 2019. "Do Workers Value Flexible Jobs? A Field Experiment," NBER Working Papers 25423, National Bureau of Economic Research, Inc.
    8. Raux, Charles & Souche, Stéphanie & Pons, Damien, 2012. "The efficiency of congestion charging: Some lessons from cost–benefit analyses," Research in Transportation Economics, Elsevier, vol. 36(1), pages 85-92.
    9. Rotaris, Lucia & Danielis, Romeo & Marcucci, Edoardo & Massiani, Jérôme, 2010. "The urban road pricing scheme to curb pollution in Milan, Italy: Description, impacts and preliminary cost-benefit analysis assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 359-375, June.
    10. Xie, Litian & Olszewski, Piotr, 2011. "Modelling the effects of road pricing on traffic using ERP traffic data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(6), pages 512-522, July.
    11. Ozbay, Kaan & Yanmaz-Tuzel, Ozlem, 2008. "Valuation of travel time and departure time choice in the presence of time-of-day pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 577-590, May.
    12. Hensher, David A. & Greene, William H. & Li, Zheng, 2011. "Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 954-972, August.
    13. Agarwal, Sumit & Diao, Mi & Keppo, Jussi & Sing, Tien Foo, 2020. "Preferences of public transit commuters: Evidence from smart card data in Singapore," Journal of Urban Economics, Elsevier, vol. 120(C).
    14. Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 784-794, August.
    15. Janusch, Nicholas, 2016. "A note on the distortionary effects of revenue-neutral tolls in a bottleneck congestion game," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 95-103.
    16. Roy Brouwer & Solomon Tarfasa, 2020. "Testing hypothetical bias in a framed field experiment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 343-357, September.
    17. Bertaud, Alain, 2003. "Clearing the air in Atlanta: transit and smart growth or conventional economics?," Journal of Urban Economics, Elsevier, vol. 54(3), pages 379-400, November.
    18. Peer, Stefanie & Knockaert, Jasper & Koster, Paul & Tseng, Yin-Yen & Verhoef, Erik T., 2013. "Door-to-door travel times in RP departure time choice models: An approximation method using GPS data," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 134-150.
    19. Bhat, Chandra R. & Sardesai, Rupali, 2006. "The impact of stop-making and travel time reliability on commute mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 709-730, November.
    20. Hossan, Md Sakoat & Asgari, Hamidreza & Jin, Xia, 2016. "Investigating preference heterogeneity in Value of Time (VOT) and Value of Reliability (VOR) estimation for managed lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 638-649.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:13:y:2006:i:1:p:22-33. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.