International Examples

Congestion pricing is currently implemented in London, Stockholm and Singapore. Other cities, including San Diego and Minneapolis utilize a system of charging on corridors (as opposed to a cordon zone) during peak hours.

London | Stockholm | Singapore

London

No other city in the world more closely mirrors New York in population, economic makeup and transportation than London. Before instituting Congestion Pricing in 2003, London was afflicted by many of the problems facing New York today: gridlock, poor air quality, hazardous streets and a transportation system that lacked the investment necessary to accommodate growth. London suffered the worst traffic congestion in the United Kingdom; drivers in central London spent 50% of their time idling in traffic. Despite these problems, Mayor Ken Livingstone's congestion pricing proposal was initially met with skepticism from many quarters. All that has changed.

Since the inception of $13 charge in 2003, traffic delays in the Congestion Zone have dropped by 26%. Bus service has become dramatically faster and more reliable, while bicycling rates have skyrocketed.

The charge has resulted in a substantial improvement in what was once the UK's most polluted air. Nitrogen Oxides and particulate matter have dropped sharply, while CO2 emissions are down 15%.

Meanwhile, the feared drop in business within the Congestion Zone never materialized. The impact of the charge has been broadly neutral with respect to citywide employment, number of businesses, turnover, commercial rents and profitability all remaining stable. London now leads the UK in economic growth.

Two-thirds of Londoners now approve of the congestion charge, and it is slated for expansion into west London.

Read more about London's congestion charge here.

Stockholm

Stockholm initiated a pilot congestion pricing project for seven months between January and July 2006. As with London, the project was preceded by transportation improvements including 197 new buses, 16 new bus lines and more trains at peak periods.

The congestion charge resulted in a 20% reduction in traffic, while air pollutants dropped roughly 10%.

The charge was heavily contested at its outset, but public opinion gradually veered in its favor. The issue was put before voters in a referendum, and 51.7%.voted to reinstate the charge. It will take effect in July 2007.

Read more about Stockholm's congestion charge here.

Singapore

Singapore was the first city to implement a cordon-based congestion pricing system in 1975. The charging area is much smaller than that of London and is divided into central business districts and expressways/outer ring roads. An ERP (Electronic Road Pricing) system introduced in 1998 now charges for different roads at different times automatically as vehicle passes under gantries.

The charge has been successful in reducing the number of solo drivers and shifting trips from peak to non-peak times. Singapore's Congestion Zone has seen a 13% reduction of traffic during charging period. It has also led to a reduction of 24,700 cars driving during peak and a 22% rise of traffic speeds.

Read more about Singapore's Electronic Road Pricing here.