Preliminary Results of the London Congestion Charging Scheme

Abstract
On February 17, 2003, the London Congestion Charging Scheme came into effect. Preliminary results show a significant response to the £5 (U.S. $8) charge. Congestion over the first year decreased by 30%. Overall traffic levels within the charging zone fell by 16%. Speeds for car travel increased by more than 20%, and bus travel became more reliable. Elasticities of demand for trips by car with respect to generalized costs are estimated to be between –1.32 and –2.10. The average marginal congestion cost within the central zone is estimated at £1.65/vehicle-km (approximatelyU.S. $2.58/vehicle-km). The net economic benefits of the Scheme for the first year were £50 million (U.S. $78 million) and the net revenues, £68 million (U.S. $106 million). Net revenues are mainly being used to improve public transport.