However, despite this, the actual implementation and running costs of the congestion charge have been suggestibly much higher than the benefit (Evans, 2007). Figures from TfL suggest that the revenue:cost ratio is extremely high (Leape, 2006). For example, upkeep of the monitoring systems requires technical experts which cost a lot to employ. The video cameras used as part of the system are also extremely costly and require maintenance and protection from vandalism (Leape, 206). Secondly, there is a lot of bureaucracy involved in chasing up congestion charge dodgers and others who falsely abuse the exemption system. Finally, there are other effects that can be judged by approaching the congestion charge economically, such as the effect on jobs and economic activity within the 22km2 zone (Leape, 2006). It is interesting to look at the effects that the congestion charge has had on retail within the zone. One paper (Quddus, Camel & Bell, 2007) looked at a John Lewis department store within the zone, on Oxford Street. The data looked at four years between 2001 and 2004, which included three years of pre-congestion data and one year post-congestion data. It was decided to stop collecting sales data after this point as the opening hours changed, which is a good way of avoiding bias in this type of economic study. However, there may still be bias present from only evaluating one year of congestion charge sales data, as three years of pre-congestion charge data was examined giving a broader picture of the economic scope of the store. Despite this, the study produced some interesting results. After controlling for Gross Value Added (GVA) specific to London and...
This paper offers a thorough analysis of the all-round impacts of the imposition of congestion charge in London. Not only economic, but also social and environmental impact is considered. The paper attempt to provide how the congestion charge assist in improving environment. It also evaluates the impact on unemployment changes facilitated by charging.
One of the main aspects of transportation in London that was intended to be improved by the congestion charge was the economics. There is evidence that there has been a positive economic effect seen by introducing the charge, with an estimated 90% of pre-charge congestion costs being eliminated by profits. However, despite this, the actual implementation and running costs of the congestion charge have been suggestibly much higher than the benefit.
In terms of the environment, there were significant reductions in traffic flows within the congestion zone area between 2003 and 2006.
There are many different approaches to the congestion charge and how it has had an effect on London from an economic standpoint. These have all given various different results within the literature, although these are partly dependent on the methodologies used and the time periods examined. One of the main issues that can come from assessing a project like the congestion charge is that it will be evaluated in the short-term, and there may be additional costs or benefits to be seen within the medium- or long-term which cannot be assessed by current results.