Area charging / Cordon pricing

FACT SHEET NO.: Cat-No.1 / Subcat-No.1.1-1

1. Pricing

1.1 Infrastructure charging / Access management schemes

Area charging / Cordon pricing

Charge motorised vehicles for entering or driving in an area, usually the city centre. Motorised vehicles are charged for their use of road space in a certain area and/or during a particular time period. By increasing the cost of travelling at certain times, in certain areas and/or along certain routes, policy makers attempt to influence the demand for road use.

The city centre of London (area charging), and the city centres of Oslo and Milan (cordon pricing). In area-based congestion pricing, drivers pay to enter a designated area and/or to drive in that area. They can drive freely within that area for the whole day. The disadvantage of area charging is that it is (in practice) more difficult to implement than cordon-based pricing, especially if the charging area is large. This is because all cars within the pricing area have to be monitored. With cordon-based pricing, only cars entering the cordon have to be checked. The disadvantage of cordon pricing is that vehicles that remain in the area (i.e. polluting vehicles) will never be charged [5]. Both systems (area charging, cordon pricing) result in a reduction of the modal share of the car, in favour of public transport and slow modes. This leads to a reduction of green house gas emissions. Note that urban road transport produces a large part of all emissions that are harmful to the climate. From that point of view, the measure is basically an effort to make drivers pay for the delays/costs/pollution/congestion/etc they impose. It forces them to reconsider their mode choice [6]. In Rome this had a reverse effect after introducing a congestion charge for cars in the inner city. To avoid charges, people started using motorcycles. This resulted in pollution levels, higher than before the implementation of the charging system [3].

Congestion reduction in the city centre, creating a change in the mode choice, less pollutant emissions, generate revenues or a combination of these form the objective of this measure. An integrated approach where aims are combined, is generally most preferable [4]. From political point of view, toll systems serve to protect the environment and avoid traffic in city centres. In practice you can distinguish a variety of tolling systems, each with another aim: reduce car traffic and emissions (pollution/noise), finance public transport, create addional revenues, or a mix of these. The congestion charging system (i.e. London) focusses on regulating traffic. It usually covers only a small area. Revenues are used to enable financing additional collective transport systems to/from the city centre. Another type of tolling system (i.e Oslo) primairily aims at bringing in revenues. To achieve that, they usually cover a wide area. The third type of tolling system (i.e. Milan) aims at changing the behaviour of car drivers, by applying toll charge rates depending on the emission category of the vehicle [3] [4].In all cases, area charging reduces the modal share of the car, in favour of public transport and slow modes of transport. This results in a reduction of green house gas emissions. Urban road transport produces a large part of all emissions that are harmful to the climate. From that point of view, charging is basically an effort to make drivers pay for the delays/costs/pollution/congestion/etc they impose. It forces them to reconsider their mode choice [6]. An important aspect op this TPM is, that it may not reduce congestion to the expected level. Due to characteristics such as loading / unloading of lorries in narrow streets, insufficient travel alternatives, congestion may remain. Therefore, before this TPM is introduced, these aspects should be studied, in order to design a well balanced set op TPMs, taking other problems into account as well.

Reduction in the modal share of the car, more travel by public transport and slow modes

Households tend to move towards the inner side of the toll cordon, while jobs/employment tend to move to the outside

Necessary trips (like work trips) show a reduction in car use. Discretionary trips (like shopping) might be redirected to other locations

When toll cordons do not fully enclose an area, drivers will try to avoid these cordons leading to congestion on other routes. Discretionary car trips (like shopping) might be redirected to other locations.

No impact, when time windows are not applicable

Probably increased occupancy rate in passenger cars, as vehicles are charged and not their individual occupants

Due to reduction of modal share of the car (in favor of slow modes and public transport), a small reduction in green house gas emissions.

[1] CAPRICE Final Conference (2011) Round Table, How To Organise And Finance Sustainable Mobility
[2] CAPRICE Final Conference (2011) Metropolitan Areas, presentation by Michael Cremer (The Greens)
[3] CAPRICE Final Conference (2011) Question And Answers
[4] European Commission (2001) European transport policy for 2010: time to decide - White Paper
[5] Takuya Maruyama & Noburu Harata (2005): Difference Between Area Based And Cordon Based Congestion Pricing
[6] Press4Transport FP7 (2011) Congestion Charging