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Territorial Review Copenhagen - Region Hovedstaden

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159<br />

types entering the central Congestion Charge Zone was consistently 16% lower<br />

in 2006 than the pre-charge levels in 2002. TfL also reported improvement of air<br />

quality in the zone. TfL‘s annual report for 2006-7 shows that revenues from the<br />

congestion charge were GBP 252.4 million over the financial year (8.5% of<br />

TfL‘s annual revenue). It spent more than half the revenue on the operating costs<br />

of the charging system. After deducting the operating costs and the other<br />

charges, net income was GBP 89.1 million. Law requires that the TfL spend all<br />

net income raised through the charge on reinvestment in London‘s transportation<br />

infrastructure. The TfL invested about 80% of net income in bus network<br />

improvements. As a result, new routes were introduced and existing routes<br />

extended, and frequency of service increased. As a result, bus use increased in<br />

the central London Area.<br />

From October 2008, the GLA will introduce a completely new charging<br />

structure. The new system will charge cars based on potential CO 2 vehicle<br />

emissions. Cars and certain pickup trucks will be charged GBP 25 a day, while<br />

low-emission cars will be free of charge.<br />

Stockholm: Stockholm introduced a congestion charge on a permanent basis<br />

in August 2007, after a seven-month trial period between January 2006 and July<br />

2006. The charged area covers Stockholm City Centre. The trial was successful,<br />

with reduced traffic and improved air quality. Before the national government<br />

made this decision, municipal governments held a referendum regarding the<br />

permanent introduction of the congestion charge. The result in the municipality<br />

of Stockholm was 53% support for the charge. However, the surrounding<br />

municipalities unanimously disapproved of the introduction of the charge,<br />

voting against it by between 54.1% and 70.4%. Many residents in the<br />

surrounding municipalities commuted to the congestion charge area and were<br />

heavily influenced by the charge. After the referendum, the government took the<br />

result in the municipality of Stockholm into consideration and implemented the<br />

congestion charge.<br />

The national government introduced the congestion charge as a tax and has<br />

managed the revenue. The government will use the revenue entirely for new<br />

road construction in and around the Stockholm area, including the construction<br />

of a new major bypass road, while the government spent all the revenue on<br />

public transport in Stockholm during the trial period.<br />

Norway: Congestion pricing in Norway is different from that in London and<br />

Stockholm, and is levied as tolls in the main corridors ―ring road‖ rather than as<br />

an area-based charge. Though it was initially intended to raise revenue to<br />

finance the ring road, it created the same impact as a congestion charge. The<br />

revenue has also provided funds for improvements in public transport and<br />

environmental projects.<br />

Singapore: Singapore has the world‘s most sophisticated and long-standing<br />

congestion charge system, thanks to the small geographic area of the city state<br />

(42 kilometres east to west and 23 kilometres north to south) and to the strong<br />

political will of the dominant political party. The fare is automatically charged<br />

depending on the time, place and vehicle type. This is the most developed type

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