Premium Essay

Congestion Charge

In:

Submitted By km13756
Words 533
Pages 3
Question 2

I will firstly define concepts of efficiency and equity. We say that particular allocation if efficient if resources (which are scarce) are allocated towards those who get greater utility from them. If those individuals are receiving greater utility for them, the maximum price at which these resources will still be bought (MPC=MB) can be pushed higher raising the total social utility (greater utility of consumers and greater utility of sellers due to higher prices). Equity (also known as economic equality) refers to the idea of fairness in economics. This principle can be easily demonstrated of example of taxation. Only those taxes are seen as economically fair which take away same proportion of individuals income: both poor and rich are affected in the same way. However, if we speak about fixed amounts taxes then certain theoretical sum can take up to 50% of income of some families, while for more wealthy individuals this sum ay amount only to
1%: as the result their life chances are affected differently.
The interaction between equity and efficiency will depend on the way we define utility in our model. The congestion charge assessment is built around value of time. We want to put monetary value on the time we lost in journey times: that way we can derive benefit from saved time due to car journey. The value we put on time is opportunity cost of that time: in case of work-related travel that will be money that could have earned over that time = Wage rate/ hour * time (in hours).
In terms of people which are more likely to pay the congestion charge we can say that they will be people with higher earnings: people’s willingness pay is normally defined with their ability to pay. Those who receive benefits of saved time greater that the congestion charge are more likely to pay it: those with higher wage rates and incomes
consequently.

Similar Documents

Free Essay

Congestion Charge

...Congestion has become one of the fundamental problems confronted by big cities. There are those who argue that congestion charge is the most effective way to make alleviate the situation. As I shall argue, reasons why congestion charge can reduce traffic jam will be explained in this essay. According to London transport data (2012), before 2003 more cars went to the central London than buses in the weekday morning peak. After applied congestion charge policy in 2003, the number of people using bus and motorcycle have increased dramatically while the number of people commuting by car have experienced the opposite trend. It is clear that congestion charge has had a positive impact on congestion situation of London. The charge force people to find other environment-friendly vehicles to use such as buses and motorcycles, rather than using cars to go to work (Livingstone, 2008). There are those who maintain that in spite of traffic jam reduction, the congestion charge has brought many disadvantages to the society and economy (Morris, 2008). Firstly, many retailers in the charging zone have faced problem that people tend to go shopping outside city center for their larger purchase. With regard to a report produced by the London Chamber of Commerce and Industry, a quarter of business leaders were thinking of moving their businesses outside the zone. As a result, there will be a big transformation of streets and shops in London and these streets will no longer attract visitors to...

Words: 400 - Pages: 2

Premium Essay

Peter K

...are two criticisms of London’s congestion charge that are so serious that it should be scrapped. The first is that driving a car is a necessity for most people: demand will be so inelastic that drivers will not alter their behavior. The second is that only people likely to be affected are low income drivers who have no choice but to travel by car.” Carefully evaluate this statement. The criticism is that this charge will be made redundant as this charge will fail to reduce congestion by a significant amount and people will rather pay the charge than find an alternative form of transport. This lack of behavioral change indicates the charge doesn’t do what it’s set out to do, and the only real benefit is the revenue gained for TFL. Using the graph we can see demand is very inelastic and even an increase in price of the charge, from p1 to p2, will only reduce quantity from q1 to q2. This small reduce in quantity is the reason why this is a criticism as congestion will reduce by a relatively small percentage The criticism is that this charge will be made redundant as this charge will fail to reduce congestion by a significant amount and people will rather pay the charge than find an alternative form of transport. This lack of behavioral change indicates the charge doesn’t do what it’s set out to do, and the only real benefit is the revenue gained for TFL. Using the graph we can see demand is very inelastic and even an increase in price of the charge, from p1 to p2, will only reduce...

Words: 903 - Pages: 4

Free Essay

Unknown

...City Council Regular Meetings are held in the City Council Chambers of the Municipal Building on the 2nd and 4th Thursday of each month at 6:00 P.M. Last Thursday, October 24, 2013 held a council meeting at 308 Fountain Circle 7th floor, Huntsville, Alabama 35801. This was my first meeting I have attended since being in the state of Alabama. There were a lot of interesting residents that had problems/ concerns within their community. There were a few cases that were brought up that caught my attention. One was a guy by the name of Mr. Regenald Hill he spoke from the heart concerning issues within the city of Huntsville. He wanted to know are the city of Huntsville actually bettering the quality of life for all the citizens and is we really focus on being one Huntsville, home from making great decisions from integration mass inconsistency and being able to have a surplus in economy well as keeping jobs international recession. He mainly aim was the city of Huntsville failing schools closing them down, combining them and giving them a new name. Instead of changing the name of the schools, fix the issues within the community where kids can be focus in the classrooms. He also made a valuable point which is that the K.K.K was founded in Pulaski, Tennessee, and now we going to take all the predominant black schools in this city and put them in one building on Pulaski pike. He asks the board to be more transparent toward the school systems in Huntsville and be considerate. Ron Dilmer...

Words: 632 - Pages: 3

Free Essay

Live

...Transport for London Central London Congestion Charge, Social impacts Survey 2002, 2003 This report was commissioned by TfL Congestion Charging from the research agency MORI to report on the findings from the main surveys completed as part of the monitoring programme to understand the social impacts of the congestion charge on Londoners and those visiting London. As a panel survey the scale has been unprecedented in researching ongoing social impacts of a transport scheme in London. This programme of research consisted of a wave of surveys ‘Before’ the scheme began, and an equivalent set ‘After’ the implementation of the scheme. The report was the culmination of the project covering the second wave of surveys which was contracted to be undertaken by MORI. The full methodology is clearly described within the report. The report comprises of chapters on each of the main areas covered in the survey. Each chapter then draws on the key findings across each geographical area and comments where there are significant differences between these locations or across classifications within groups of interest. It primarily focuses on results from the ‘After’ wave of surveys, but where appropriate compares these results to respondents expectations from the ‘Before’ wave. The document is very user-friendly, clearly summarising key findings at the front of each chapter, as well as in an executive summary. In addition Chapter 2 provides a useful summary of results across each area and non-socio...

Words: 558 - Pages: 3

Free Essay

Traffic

...Background: Traffic congestion is not a new problem. The number of automobiles and trucks have been increased during the last few decades after the car boom period. So there was an urgent need for constructing more highways and bridges , improving traffic-signal controllers, making changeable highway signs, rerouting rush hour traffic, creating traffic-control centers that monitor and display the overall traffic conditions, using preplanned alternative traffic solutions based on repeated daily traffic patterns, etc. However, some strict financial sanctions or fines must be applied to eliminate the problem of traffic jam. For Jeddah city, the streets are overcrowded with cars and people. At the same time, the airports are welcoming a large number of newcomers all over the world every day. Moreover, the number of roads and bridges is not sufficient to the increasing number of vehicles. In addition, in Jeddah there are approximately four million people both Saudis and expatriates who use over one million vehicles to move around the city. We also expect more. Causes of traffic congestion inside the cities Saudi Arabia is a modern Country, but it also has a modern and serious problem. Every day in the morning and evening, the roads and streets are so crowded with cars, taxis, buses and trucks. In this part will mention the causes of traffic congestion in Saudi Arabia’s major cities. In the next lines, we will speak about the several reasons for traffic problems in...

Words: 1731 - Pages: 7

Free Essay

Geography

...sustainability can be achieved. (40 MARKS) Transport management; PLAN: Speed bumps, traffic lights, round-a-bouts, speed limits, zebras crossings, speed cameras, speed awareness Increase the prevalence of pedestrian areas (MK train station)- achieved by increasing the use of PUBLIC transport, park ‘n ride (Oxford), charge people for using cars= congestion charge in London Introduce bus lanes Boris bikes in London Social, economic and environmental implications of all the strategies of controlling the transport. DISCUSS: reasons for and against come to a conclusion at the end. Sustainability means that any development made meets the needs of the contemporary inhabitants without compromising the needs of future generations. A sustainable city means that the city meets the needs of current and future inhabitants; this is relevant as the focus relates to urban areas. In relation to the management of transport there are many examples of how it can be controlled in order to provide a more sustainable approach to an urban area. The most common strategy of managing transport is by introducing government regulated schemes such as congestion charges and transport schemes e.g. ‘Boris bikes’ which are both in used in London, with bike schemes becoming more popular as a result of the introduction in London in 2010 has inspired the implication of similar schemes in other areas, with a grand total of 600 cities in 49 different countries using them. The scheme allows people...

Words: 1085 - Pages: 5

Free Essay

Unit 2: Research Paper 1

...amount of time the incentives were given at separate but equal intervals (Bullock, 2011). A decrease in cars on the road would limit the amount of traffic on the road and also free up precious parking space. Tolls for single use carpool lanes will also benefit in decreasing traffic. The carpool lane is mostly always free of traffic during rush hours which is good for carpoolers, but also counter intuitive. The carpool lane turns into a wasted lane if people are not taking advantage of carpooling. Sensors can be placed in cars to automatically charge the fare for using carpool lanes during rush hours (Bullock, 2011). Commuters will pay for the device and conveniently register on an online website that monitors the use of the charges. In addition to tolls utilized for carpool lanes, they can also be used for high traffic during peak times. The same sensor devices used for carpool lanes can be used for computer monitoring for congestion pricing, also...

Words: 373 - Pages: 2

Premium Essay

Traffic Congestion Levels Are Rising in Major Cities Around the World.

...medical risks. The second part will offer several feasible solutions to the traffic congestion issue, which are carpooling, establishing an intelligent traffic control system and raise taxes. In the first place, it can be argued that a series of problems can be incurred by high traffic congestion levels. To begin with, traffic jams, arguably, will give rise to increased travel time. Taking China for example, Yang et al. (2011) indicated that traffic congestion, in China, was a serious “urban illness” problem, which had resulted in delays in travel time. Accordingly, the economic efficiency of the whole city is understood to be affected to some extent. Secondly, traffic congestion is responsible for bringing about a large number of economic losses for individuals as well as the waste of oil resources. Generally speaking, the continuous stop and start driving in traffic jams will burn more fuel than smooth driving on an open highway. As a result, extra money will be spent on fuels. Just as Du and Zheng (2012) pointed out that traffic jams could result in tremendous economic losses and waste of fuel resources. In addition, another issue is that high traffic congestion levels may cause significant medical risks. Encountering traffic jams will probably be a severe problem during transferring or picking up a patient to an emergency medical procedure. Carnall (1996) argued that traffic congestion, around the hospital sites, would delay...

Words: 610 - Pages: 3

Premium Essay

Dss and Traffic Management

...Application of DSS to Traffic Management Table of Contents Table of Figures ............................................................................................................................................. 1 Table of Tables .............................................................................................................................................. 1 Introduction .................................................................................................................................................. 2 Framework and Infrastructure...................................................................................................................... 3 MODELLING AND APPLICATION OF DSS TO TRAFFIC MANAGEMENT .......................................................... 8 MSTEM By (Hasan, 2010) .......................................................................................................................... 8 Fuzzy Logic Application by (Almejalli, Dahal, & Hossain, 2006) .............................................................. 12 MultiAgent Modelling by (Ossowski, et al., 2005) .................................................................................. 15 Conclusion ................................................................................................................................................... 18 References .........................................................................................................

Words: 3368 - Pages: 14

Premium Essay

Fundamental of Criminology

...his freedom of action. Neighborhood Investigation - one of the most crucial steps in kidnap for ransom cases which is often overlooked. The objective is to identify and interview in person all individuals in the area where the victim was kidnapped or last known sighting area during the window of opportunity.(last time seen until the time discovered missing. Crime scene - a venue or place where the alleged crime/incident/event has been committed. Corpus delicti - (latin for the body of the crime) - used to describe the physical or material evidence that a crime has been committed. ex. corpse of a murder victim. Confession - is an express acknowledgement by the accused in a criminal prosecution of the truth of his guilt as to the offense charge. Admission - refers to statement of facts not directly constituting an acknowledgement of guilt. Organized criminal group - a structured group of three or more persons existing for a period of time and acting in concert with the aim of committing one or more serious crime or offenses. Organized crime - a combination...

Words: 10547 - Pages: 43

Free Essay

Research Paper

...Transport policy in 2011: a new direction? RESEARCH PAPER 11/22 2 March 2011 This paper outlines the changes made to transport policy by the Conservative-Liberal Democrat Coalition Government and looks at some of the long term transport challenges the government is likely to face over the course of this Parliament. It complements and updates House of Commons research paper 10/28, Transport policy in 2010: a rough guide. Louise Butcher Matthew Keep Recent Research Papers 11/05 Social Indicators 18.01.11 11/06 Scotland Bill [Bill 115 of 2010-11] 19.01.11 11/07 Estates of Deceased Persons (Forfeiture Rule and Law of 19.01.11 Succession) Bill [Bill 8 of 2010-11] 11/08 Unemployment by Constituency, January 2011 19.01.11 11/09 Fixed-term Parliaments Bill: Commons Stages 21.01.11 11/10 UK Defence and Security Policy: A New Approach? 21.01.11 11/11 Health and Social Care Bill [Bill 132 of 2010-11] 27.01.11 11/12 Economic Indicators, February 2011 01.02.11 11/13 Anonymity (Arrested Persons) Bill [Bill 9 of 2010-11] 02.02.11 11/14 Education Bill [Bill 137 of 2010-11] 03.02.11 11/15 Budget Responsibility and National Audit Bill [HL] 08.02.11 [Bill 143 of 2010-11] 11/16 The Local Government Finance Settlement 2011-13 08.02.11 11/17 Legislation (Territorial Extent) Bill [Bill 10 of 2010-11] 08.02.11 11/18 Wash-up 2010 11.02.11 11/19 Unemployment...

Words: 27685 - Pages: 111

Premium Essay

Speed-Density Relationship for Arterial Roads

...CHAPTER 1 INTRODUCTION 1.1 Background of study The primary function of any highway is the transportation of people and goods from its source across to its intended destination. The functional effectiveness of any facility as such should be to ensure it serves its designed capacity with the most of convenience and safety for the users and vehicles plying it. This would help improve the level of service of facility and overall see to it that the socio-economic importance of it is realised. Traffic engineering analysis has to be employed to study the characteristic traffic flow conditions of the highway. The speed, density and flow are the basic traffic stream variables that need to be studied together with their relationship with one another in the traffic stream. These variables are very much linked and their relationship would provide an indication of the level of usage and efficiency of a roadway system and provide transportation planners the basic data in the evaluation of the effectiveness of capacity improvement measures. Information on highway traffic conditions is usually collected by organising and conducting traffic surveys and studies. Traffic studies may be grouped into three main categories as inventories, administrative studies, and dynamic studies. Of these three the dynamic traffic studies involve the collection of data under operational conditions and include studies of speed, traffic volume, travel time and delay, parking and accidents. This study is made...

Words: 10806 - Pages: 44

Free Essay

How Does Transport Influence Land Use and Development

...development of traffic and access way may produce the micro land use such as industry and agriculture. The interrelationships between transportation and land use remain contentious despite extensive research. In particular, the influence of transportation system performance on land use development, although recognized as a lagged relationship. In addition, the land use been influenced because of certain problem that need to be overcome especially on traffic congestion. In response, communities are beginning to implement new approaches to transportation planning, such as better coordinating land use and transportation; increasing the availability of high quality transit service; creating redundancy, resiliency and connectivity within their road networks; and ensuring connectivity between pedestrian, bike, transit, and road facilities. In short, they are coupling a multi-modal approach to transportation with supportive development patterns, to create a variety of transportation options. Concerned that traffic congestion and urban sprawl are overwhelming the human scale of city area, an increasing...

Words: 1435 - Pages: 6

Free Essay

Sasa

...Traffic congestion is a growing problem in many metropolitan areas. Congestion increases travel time, air pollution, carbon dioxide (CO2) emissions and fuel because cannot run efficiently. London’s traffic at the turn of the millennium may have been far worse than that of the average metropolis. When driving in London’s downtown area, drivers spend around half their time waiting in traffic, incurring 2.3 minutes of delay every kilometer they traveled. Traffic congestion is a growing problem in many metropolitan areas. People waste a lot of time in traffic jams every day. Big cities are never good, and London’s downtown area’s traffic is to say unbelievable. Congestion increases travel time, air pollution, carbon dioxide (CO2) emissions and fuel because cannot run efficiently. London’s traffic at the turn of the millennium may have been far worse than that of the average metropolis. When driving in London’s downtown area, drivers spend around half their time waiting in traffic, incurring 2.3 minutes of delay every kilometer they traveled. In the case we are studying the government decided to use the information technology to help the city control the traffic jam situation. The government decided to use 699 cameras at 203 sites in the 8 square miles in the city. To do this would be a challenging project because the project has a very limited time and there is no other successful case to follow.   A political risk is really high and a new transit authority working under a new...

Words: 306 - Pages: 2

Free Essay

Telecommuting

...Speaking Notes Title: Telecommuting – Working from Home Name: Leigh Ann Anderson Purpose: To persuade the audience how telecommuting is beneficial to them and try to convince them to consider it for their jobs. I. Introduction a. Imagine an alarm going off, waking you from a deep sleep. It’s 8 am on a Monday morning and, after much reluctance, you stumble out of bed, take a shower, brush your teeth, and trudge to your kitchen for your morning cup of coffee. Realizing it’s time to head off to work, you start your car and start making your way onto the interstate, only to be slowed down by a mile long stretch of heavy traffic. Looks like you might just be late for work and have to hear a long rant about it from your boss. Or maybe your car didn’t start at all this morning. The battery didn’t give you any notice that it was going to die on you. Perhaps you have a sick child and just find it impossible to make it into work or you’re feeling a bit under the weather yourself. b. These are just a few of the many circumstances that make telecommuting, or working from home, an attractive option. c. There will be those days where it may seem unlikely or even impossible that you will be able to make it to your job, but you still need to get work done in order to stay on track or even meet a deadline. d. In the hopes of persuading you to consider telecommuting, I will explain how beneficial it can be for you and provide you with tips with how to go...

Words: 1101 - Pages: 5