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The Impact of the Congestion Charge on Retail: the London Experience

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  • Mohammed A. Quddus
  • Alon Carmel
  • Michael G. H. Bell

Abstract

The effect of London's congestion charge on the retail sector has aroused considerable interest since the introduction of the scheme in February 2003. We investigate the impact of the congestion charge using a variety of econometric models applied to a total retail sales index for central London (monthly) and weekly retail sales data for the John Lewis Oxford Street store within the congestion charging zone. The analysis suggests that the charge had a significant impact on sales at the John Lewis Oxford Street store over the period studied. However, it also suggests the charge did not affect overall retail sales in central London, an area larger than but encompassing the congestion charging zone. © 2007 LSE and the University of Bath

Suggested Citation

  • Mohammed A. Quddus & Alon Carmel & Michael G. H. Bell, 2007. "The Impact of the Congestion Charge on Retail: the London Experience," Journal of Transport Economics and Policy, University of Bath, vol. 41(1), pages 113-133, January.
    • Handle: RePEc:tpe:jtecpo:v:41:y:2007:i:1:p:113-133
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    Cited by:

    1. Dale, Simon & Frost, Matthew & Ison, Stephen & Nettleship, Ken & Warren, Peter, 2017. "An evaluation of the economic and business investment impact of an integrated package of public transport improvements funded by a Workplace Parking Levy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 149-162.
    2. Danielis, Romeo & Maggi, Elena & Rotaris, Lucia & Valeri, Eva, 2012. "Urban supply chains and transportation policies," Working Papers 12_7, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    3. De Borger, Bruno & Russo, Antonio, 2017. "The political economy of pricing car access to downtown commercial districts," Transportation Research Part B: Methodological, Elsevier, vol. 98(C), pages 76-93.
    4. 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.
    5. Danielis, Romeo & Maggi, Elena & Rotaris, Lucia & Valeri, Eva, 2012. "Urban supply chains and transportation policies," Working Papers 1207, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    6. 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.
    7. 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.
    8. Dale, Simon & Frost, Matthew & Ison, Stephen & Quddus, Mohammed & Warren, Mr Peter, 2017. "Evaluating the impact of a workplace parking levy on local traffic congestion: The case of Nottingham UK," Transport Policy, Elsevier, vol. 59(C), pages 153-164.
    9. Mullen, Caroline & Tight, Miles & Whiteing, Anthony & Jopson, Ann, 2014. "Knowing their place on the roads: What would equality mean for walking and cycling?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 238-248.
    10. 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.
    11. Moshe Givoni, 2012. "Re-assessing the Results of the London Congestion Charging Scheme," Urban Studies, Urban Studies Journal Limited, vol. 49(5), pages 1089-1105, April.
    12. Bonsall, Peter & Young, William, 2010. "Is there a case for replacing parking charges by road user charges?," Transport Policy, Elsevier, vol. 17(5), pages 323-334, September.
    13. Eliasson, Jonas, 2017. "Congestion pricing," MPRA Paper 88224, University Library of Munich, Germany.
    14. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008.
    15. Hoffman, Karla & Berardino, Frank & Hunter, George, 2013. "Congestion pricing applications to manage high temporal demand for public services and their relevance to air space management," Transport Policy, Elsevier, vol. 28(C), pages 28-41.
    16. Zhong, Shaopeng & Wang, Shusheng & Jiang, Yao & Yu, Bo & Zhang, Wenhao, 2015. "Distinguishing the land use effects of road pricing based on the urban form attributes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 44-58.
    17. Munford, Luke A., 2017. "The impact of congestion charging on social capital," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 192-208.
    18. Enrica Carbone & Vinayak V. Dixit & E. Elisabet Rutstrom, 2022. "Should I stay or should I go? Congestion pricing and equilibrium selection in a transportation network," Theory and Decision, Springer, vol. 93(3), pages 535-562, October.
    19. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.

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