www.curacaoproject.eu                      CURACAO - coordination of urban road-user charging organisational issues                   Funded by the EU

Road Pricing Context

OBJECTIVES

SCHEME DESIGN

TECHNOLOGY

BUSINESS SYSTEMS

Prediction

PREDICTION

TRAFFIC EFFECTS

ENVIRONMENT

ECONOMY

EQUITY

Appraisal

APPRAISAL

Decision Making

ACCEPTABILITY

TRANSFERABILITY

Implementation and Evaluation

EVALUATION

IMPLEMENTATION

Case Studies

Bergen

Bologna

Bristol

Cambridge

Durham

Dutch National Case

Edinburgh

London

Manchester

Milan

Nord-Jaeren

Oslo

Rome

Stockholm

The Hague

Trondheim



Urban Road User Charging Online Knowledge Base

Comparison of ECONOMY on our case studies

London

There are a number of externalities that have had an impact on the UK and thus central London economy, both of which are closely aligned. TfL list these as:

  • The closure of the Central Line, owing to the Chancery Lane derailment, and the beginning of the war in Iraq in 2003;
  • The central London terrorist bombings in 2005;
  • The Bank of England interest rate increases in 2006.

TfL reported in their Central London Congestion Charging – Impacts monitoring Fifth Annual Report that there was “no general evidence of any clear differential impact of the central London congestion charging scheme on business activity.”

It is clear that it is difficult to quantify the economic impact of Congestion Charging in London. However, it is worth noting a number of observations about the ‘health’ of the economy in London since this indicates, even if it does not quantify, that Congestion Charging has not had a positive or indeed negative impact. We can note the following:

  • During 2005 business performance within the charging zone (at that time without the Western Extension) was significantly better than in the rest of London, notably in terms of profitability and productivity.
  • Analysis of comparative trends for various indicators of business performance continues to show no evidence of serious differences between the charging zone and comparative locations outside that might be indicative of a congestion charging effect either positive or negative on overall business performance in central London.
  • Trends in business VAT registrations follow this trend and do not indicate a significant congestion charging impact on central London businesses.
  • Businesses within the charging zone continue to recognize the decongestion benefits in terms of the area having become a more pleasant place to work and less problematic in terms of accessing work locations.

One of the key success factors for implementation of the Congestion Charging scheme in London, identified by TfL in their fifth annual monitoring report, July 2007, has been robust and far-reaching stakeholder and public consultation.

TfL states that consultation has been a ‘consistent element’ of the scheme from the development of the Mayor’s Transport Strategy in 2001 to the introduction of the Western Extension in 2007. A large number of formal and informal public and stakeholder consultation exercises have been held, some examples of which relate to:

  • The Western Extension;
  • The introduction of the Pay Next Day facility;
  • Removing anomalies relating to resident discounts;
  • Providing incentives to apply for discounts; and
  • Changes to the original Central London zone.

Rome

The ACS+RP schemes are a success in economic terms. The better liveability inside the zones has increased the value of all the buildings and commercial activities. At the beginning of implementation, residents tend to be in favour and retailers/shopkeepers are against. After some months of application of the measure, normally an equilibrium point is found, with common satisfaction.


Stockholm

The budget for the entire Stockholm trial package was SEK 3.8 billion1] (€380 million), or approximately SEK 2.7 billion (€270 million) after deductions for various residual values. Of this total net budget approximately two thirds were costs for investments, initialisation and commissioning of the congestion charging system, whereas the remaining third related to other parts of the package – for example public transport, improved park-and-ride facilities, information and evaluation.

The Swedish Road Administration has estimated that the tested system can be run on an operating cost of around SEK 220 million (€22 million) p.a including re-investments. Initially this cost has been quite higher however. Based on this figure, the Stockholm system is relatively expensive to operate in comparison with those systems in Norway with which it share certain similarities with regard to technology, design and function. For example, the system in Oslo, which is the same size as Stockholm’s (approximately 90 million passages p.a. compared to Stockholm’s approximately 80 million passages p.a.) costs around SEK 145 million (€14,5 million) p. a. in operating costs and administrative expenses.

The cost-benefit analysis (CBA) that was conducted in connection to the trial concluded that if viewed solely as a short-term trial which, once terminated, will not subsequently be resumed, the Stockholm Trial represented a disbenefit of some SEK 2.6 billion (€260 million) in socioeconomic terms.

However, if congestion charging were to be made permanent, corresponding calculations suggested that the system would generate a substantial annual surplus in CBA terms of some SEK 760 million (€76 million) after deductions for operating costs. The investment cost sustained by society would then be “repaid” in the form of socioeconomic benefits within four years. This is a very quick repayment period in comparison with, for example, investments in road infrastructure and public transport, which even under relatively favourable circumstances have a repayment time of between 15 and 25 years.

On the plus side of the balance sheet in the cost-benefit analysis of the congestion-charging system are, for example, shorter travel times (value: SEK 600 million p.a. (€60 million)), improved traffic safety (SEK 125 million p.a. (€12,5 million)) and the positive effects on health and the environment (SEK 90 million p.a.(€9 million) Income from the congestion tax is estimated at around SEK 550 million (€55 million) p.a. after deductions for operating costs.



1] 1 SEK ≈0,10 Euro

Oslo

Since 1990, the Oslo Packages have financed parts of the road and public transport investments in the Oslo region. Oslo Package 2 has been dedicated to investments in public transport. The Government was to finance 45 per cent of the investments in Oslo Package 1. About 40 per cent of the revenue from road user charging should be spent on public transport investments. From 1990-2001 Oslo Package 1 (funding from user charging and the state budget) financed investments for a total of 11 billion NOK (about 1.4 billion Euro).

The total operating income of the Oslo toll ring was 1,248 mill NOK (156 M€). The operating cost of the Oslo toll ring was 134 mill NOK (16.8 M€). The operating costs have stayed at 10-11% of the operating income for the last 10 years. Having close to 93 million registered trips through the ring in 2006, this makes the operating cost per trip to be 1.4NOK (0.2€).

Bristol

No information available.

The Hague

At this point, no economic effects (costs as well as benefits) are known.

Durham


No information available.

Edinburgh

  • A very marginal impact on the Lothian economy – in terms of value added and jobs this is marginally negative.
  • A redistribution effect within the area of both jobs and population: population would be slightly higher in the city centre and outside the city; there would have been some movement of jobs out of the city into the surrounding areas.

Milan

During the period between January and November 2008 the revenues from Ecopass tickets have been as shown in the following table:



As shown in the table above the 71% of revenues comes from the papery tickets sold by authorised shops. That’s because of the high percentage of occasionally users with a consequent relevant percentage of daily tickets sold (93% in respect of the total). Also the tickets bought by web are quite meaningful with a 17% of the total tickets sold, while just a 12% of users employs the current account payment.

The operating costs of system during 2008 have been equal to 6.5 M€ and the whole net revenues will be invested in PT improvements.




Bergen

No information available.

Bologna

No information available.

Cambridge


No information available.

Dutch National Case


No information available.

Manchester


No information available.

Nord-Jaeren


No information available.

Trondheim


Traffic and Income Flows during 1992-2005


The number of vehicles crossing the toll stations increased from close to 21 millions during 1992, the first full year of operation, to more than 50 millions in 2005, the last year of operation.



Some interesting findings on longer-term effects appear, when looking at the period 1992-97, during which the payment scheme was unchanged. During this 5-year period there was a slower average annual growth in total traffic crossing the toll cordon (1.8 %), compared to the general growth in the Trondheim area (2.8 %) or the County of Sør-Trøndelag (2.6 %). Most of the growth in traffic crossing the cordon occurred during the charged hours, indeed 2.9 % compared to only 0.8% during the uncharged hours. Paid crossings constituted 48.6% in 1992, but grew to 51.3% in 1997.

Firstly, this indicates that the Trondheim charging scheme is associated with a slower growth in total in-bound traffic crossing the cordon, than what would otherwise have been expected. Secondly, a gradual return of traffic that initially was “priced out” of the more preferred charged time periods is evident.

The 1998 revision of the scheme led to a major increase in traffic crossing the toll cordons, and also in the percentage of vehicles being charged. Compared to the previous year, the total number of vehicles crossing toll stations increased by 39 % and charged traffic increased by 53%. The main reason for the large increase in charged traffic was the one hour extension of the charging period.

The final extension of the scheme with six additional toll stations on 1 November 2003 is already evident in the traffic data for 2003, but the full effect came in 2004 and 2005. Compared to 2002, the total number of vehicle crossings in 2005 is up by 37% and charged crossings are up by 40%.

The next figure shows how the flow of gross revenues developed during the lifetime of the charging system. The increase in 1998 is due to the introduction of the zone scheme. A second large increase came in 2001 after a 25 % raise in the basic toll level and a third large increase in 2004 is attributable to the final extension of the scheme. In total the charging scheme brought in 1,818 million NOK (227.25€) in gross revenues.

Annual operation costs for the Trondheim charging scheme have been 10-11% of gross revenues throughout its period of operation.