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Road Pricing - Essay Example

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Social programs that we can use for our analysis can be 'Road Pricing' policy used by the government of England to reduce the traffic congestion in London. The plan began in 2003, with a flat-rate charge of 5 on the vechicle travelling on the roads that surround Central London…
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Road Pricing
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Road Pricing

This cleary indicates that there has been hinderance in traffic flow due to traffic congestion and these cases present externalities which must be avoided by using road pricing to reduce the number of cars on road by charging them a flat-fee in the form of road pricing. According to a source that major traffic jams occur in Central London at around 7:30 am in the morning and then 6:30 pm in the evening. Those eligible to pay were around 150,000 people who used the road every day. These charges were only levied on private vehicles. Pulic vehicles were exempted from these charges so as various other kinds of groups.
However, many organisations in UK have argued over the price that is being charged. They claim that it is not the appropiate charge and is much higher than social costs that a vechile inflicts. They also support the reduction of this charge. Similarly, many people have argued that there are errors in database technology which often leads to double charging and over charging. So, in both cases if this carelessness persist it would not solve the problem of congestion but would deter people from driving even if they can afford to pay these costs. The economics behind this will that due to double charging and over charging , demand would go down to zero. ... Read More
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