PDF: 1832 KB - Bureau of Infrastructure, Transport and Regional ...

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PDF: 1832 KB - Bureau of Infrastructure, Transport and Regional ...

Chapter 4 | Congestion charging and community attitudes

The theory underpinning congestion charging schemes is based on internalising the

congestion externality. This is not costless and is technically difficult to get right. The

higher the scheme costs, the fewer funds that would be available to attract community

support for the scheme.

In addition, governments often treat the revenue raised as a windfall. Consequently,

there is a strong risk that officials will not apply the same rigorous evaluation

procedures normally required for government expenditure. Thus there is a risk that

low-yielding projects will be funded, some of which perversely benefit those that

have already won from the congestion charging. This is a particularly core issue

where the revenue is earmarked.

In brief, there is a significant risk facing all congestion charging projects that the

potential gains from introducing the scheme will be dissipated by poorly considered

efforts to reduce community resistance.

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