The London Congestion Charging Scheme: The Evidence

  • John Peirson
  • Roger Vickerman
Part of the Advances in Spatial Science book series (ADVSPATIAL)


In February 2003, the Mayor of London introduced road pricing for driving in a small area of Central London. The London Congestion Charging Scheme uses relatively simple technology, was implemented over two and a half years, faced political opposition and required the efforts of a determined political champion who refused to be put off. The £5 charge has reduced car movements by about 30%, and increased bus use and traffic speeds. The unexpectedly large reduction in car use is partly explained by the possibility of taking routes around the charging zone. For this reason, the implied elasticity of about −0.8 is greater than many other previous elasticity estimates. It is suggested that extending the Scheme to a larger area or applying a similar scheme to certain other cities may not be quite so successful.


Price Elasticity Road User Ring Road Road Price Congestion Charge 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • John Peirson
    • 1
  • Roger Vickerman
    • 1
  1. 1.Department of EconomicsUniversity of KentCanterburyUK

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