Traffic Congestion Pricing: Methodologies and Equity Implications

Abstract

Road traffic congestion is recognized as a growing and important urban ill. It occurs in different contexts, takes on many faces and is caused by a variety of processes. It affects both work trips and non-work trips, both passengers and goods flow. It affects the quality of life and the competitiveness of a region. It is an additional cost that arises in the forms of delay, environmental degradation, diminished productivity, standard of living and wasted energy. Congestion pricing can result in winners and losers among different socioeconomic groups. However, different studies differ in their conclusions about who wins and who loses because of different assumptions made. This paper reviews the concepts of congestion pricing as a mitigation policy to reduce road congestion and reviews the concept of equity. This paper aims to provide theoretical research that enhances our understanding of congestion pricing policy and the equity implications of this policy.