Territorial Review Copenhagen - Region Hovedstaden

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In designing a detailed scheme of congestion charge such as the area and time
covered, vehicle type charged, price level and structure (flat, gradual or
variable), discount and exemption, policy makers should analyse the following
fundamental issues;
Geographic structure of the city and the congestion analysis: Where
is the congestion severe? Area (polygon) or main avenues (line)?
Are there any physical alternatives, such as road expansions? What is
the residential density in the area? Who contributes to the congestion
in the city? Do most residents or commuters live outside the city?
Impact on economic efficiency: How much will the congestion
charge improve traffic conditions in terms of time and money? What
are the impacts on business?
Financial sustainability: Will the revenue raised afford the initial
costs and operating expense?
Distributional effect: Given that exemptions and discounts usually
accompany such plans, the distributional effect is usually complex.
Who will benefit and lose from the introduction of the plan? Are the
impacts progressive, regressive or neutral?
Impact on general national and local finance: Impact on fuel tax,
parking revenue if managed locally, cost of parking enforcement, etc.
Which sector of national and local governments increase or decrease
the fiscal balance?
The possibility of improving alternative modes of transport in
advance of the introduction of the congestion charge: How and how
much can it mitigate the impact of the congestion charge?
Possible impact on the surrounding area: How much and where will
the through-traffic go? How much additional parking should be
supplied close to the boundary? What are land use impacts?
Impact on environment: Given that climate change is an increasing
concern, governments are highly likely to add the environmental
consideration in the congestion charge scheme. Will the congestion
charge contribute to the decrease of CO 2 emissions or worsen them
by increasing through-traffic?
London: The GLA originally introduced the London Congestion charge
covering the parts of Central London in February 2003, and extended the area
into part of West London in February 2007. The extension increased the resident
coverage from 150 000 to about 230 000. The main objectives of the charge are
to reduce congestion, and to raise funds for investment in London‘s
transportation system. The charge was originally GBP 5 a day, but was later
increased to GBP 8 a day. An entity called Transport for London (TfL) manages
the charging system. The TfL estimated that the level of traffic of all vehicle