A cross-country comparative analysis of congestion pricing systems: Lessons for decarbonizing transportation
The transport sector contributes to 14 % of global greenhouse gas (GHG) emissions, and the sector’s emissions have risen by 19 % in the last decade (SLOCAT, 2021). To achieve net zero emissions by 2050, the transport sector must decarbonize rapidly (IPCC, 2021). In addition to GHG concerns, internal combustion engine vehicles are one of the main contributors to air quality emissions which negatively impact human health and lead to environmental damage (Santos et al., 2019). Air quality emissions include particulate matter (PM10 and PM2.5) and nitrogen oxides (NOx) (Ma et al., 2021; Santos et al., 2019). While substantial policy efforts have been focused on fuel switching and pollution limits, additional policy is needed to encourage behavioural change in driving demand and mode of transit choice (Boggio and Beria, 2019, Piatkowski et al., 2019). Congestion pricing is a key policy which can motivate these changes (Lindsey & Santos, 2020). This study focuses primarily on GHG mitigation aspects of congesting pricing, though air quality co-benefits are also discussed.
Alongside national and sub-national climate action, local governments play a particularly important role in implementing climate change mitigation policy (Markolf et al., 2017). They have responded to the climate crisis by adopting Climate Action Plans and committing to agreements such as the U.S. Conference of Mayors’ Climate Protection Agreement, the International Council for Local Government Initiatives – Local Governments for Sustainability, and the C40 network of global cities striving to reduce GHG emissions (Markolf et al., 2017). Congestion pricing is enacted on locally managed streets and roads providing local governments with a unique avenue to address GHG and air quality emissions. Of cities in the C40 network, 45 developed and published a climate action plan, and 21 have implemented a congestion pricing system (n.d.-b). Our Cities. Retrieved November 3 from, 2022, November, 2022a).
Very little comparative analysis has been done to identify congestion pricing design features that are most desirable for achieving GHG and air quality emission reductions. Both climate and transportation policy studies have used multi-attribute policy analysis as a conceptual framework for analysis (Goulder and Parry, 2008, Lehe, 2019, Mahapatra et al., 2021, Rhodes and Jaccard, 2013). Unlike previous studies which largely focused on a single criterion, system or system type, this study utilizes a multi-attribute policy analysis to assess a broad selection of evaluative attributes across multiple system types worldwide. Including multiple types of congestion pricing systems provides a novel perspective on the role of design features for GHG and air quality emissions reductions at the community level. This study contributes to the literature by distinguishing congestion pricing as an important class of GHG and air quality emissions reduction policy, reviewing its use in a cross-country context, and drawing key lessons for the design and implementation of future congesting pricing policies.
This study provides a cross-country comparative analysis of congestion pricing systems across 11 wealthy cities within the Organisation for Economic Co-operation and Development (OECD) based on their gross domestic product (GDP). The primary research objectives are to:
- 1.Identify and compare the types, design features and implementation contexts (i.e., socio-economic and political conditions) for existing congestion pricing systems in the selected 11 cities, and
- 2.Assess the identified congestion pricing systems in terms of reported GHG and air quality emissions reductions, reported mode shift among private commuters, and reported public support as a proxy for political acceptability.
Section 1 introduces different types of congestion pricing systems reviewing past literature and theoretical concepts guiding the study. Section 2 provides an overview of the methods used to perform the analysis of congesting pricing systems against multiple policy attributes. Section 3 summarizes the results of the evaluation of four congestion pricing systems against evaluative attributes. Section 4 discusses the research results considering existing literature, examining the interrelationship between evaluative attributes, desirable design features for achieving emissions abatement, and equitable congestion pricing system implementation. Finally, Section 5 offers conclusions and policy recommendations.
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