Congestion Pricing Literature Review

CHAPTER 2
LITERATURE REVIEW
INTRODUCTION
According to the father of Congestion Pricing, William Vickrey, congestion pricing works by increasing the fee during peak hours in highly congested zones during these critical hours which will make time travel to its minimum. Some benefits of Congestion Pricing will be tackled shortly, but will only be the benefits most noticeable and not the technical benefits. By also reviewing the literature, it will give us ideas on how other countries like Singapore, USA and England implement their respective Congestion Pricing systems and it may give us some ideas on how we can integrate their systems to the current situation of traffic in our country.

CONGESTION PRICING IN OTHER COUNTRIES

Table 1

CONGESTION

Five benefits will be discussed and these are: (1) Reduction of traffic congestion and time travel. Vehicle owners will have more time going to places where they want to go. Drivers of mass transportation like buses will be more likely to reach more destinations in one trip. (2) Transit benefits from both additional passengers and developing mechanisms. Meaning, owners of private vehicles will more likely to commute and use mass transportation vehicles because they will save energy in driving and money to fuel their cars. (3) Road savings. Clearly, implementing congestion pricing in an area will make commuters and private vehicle owners to use other modes of mass transportation. In result, traffic congestion will more likely to lessen, thus the government will not need to build more roads which will result to additional vehicles in roads. (4) Safety. Safety in terms that lesser vehicles in the road, lesser accidents will occur. Specifically, car crashes which is common in a traffic congestion. (6) Health benefits may also be included. Passengers who are affected by congestion pricing may not use mass transportation but instead may use cycling or they may even walk if their destination is walkable. Figure 1 shows increase in physical activity and its benefits to passengers. (5) Reduction in air pollution. Simple explanation is that, the lesser the vehicles the lesser the pollutants will