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					                                                Coordination of urban road-user charging organisational issues
                                                                                   http://www.curacaoproject.eu




                   Pricing in Urban Areas:
                   the CURACAO project


                              David Blackledge
                        Transport & Travel Research ltd
                             Project Coordinator



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                     Introduction




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                    Objectives



     • To support and promote
       fairer and more efficient
       pricing of road usage in
       urban areas

     by

     • coordinating research
       and monitoring results of
       road user charging
       schemes


Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                     Overview




             15 consortium partners (5 cities, 10 expert
             partners)

             3 year duration April 2006 – March 2009

             Research, best practice monitoring,
             coordination and dissemination (no
             demonstrations)


Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                              Project approach



             What barriers are
             stopping cities moving
             forward with road
             pricing
             implementation?

             What support do
             cities need in order to
             overcome these
             barriers?



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                         Barriers to road pricing




             User Needs Assessment conducted for 22
             European cities in July 2006

             Top 3 barriers:
                  Low public acceptability
                  Lack of a political champion
                  Difficulty in planning/managing such a large project




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                        Overcoming barriers


             Annual reports on the state-of-the-art knowledge of road
             pricing research

             Online database of good/bad practice

             Lessons learned from cities with road pricing experience
             (Bristol, Oslo + other Norwegian cities, Rome, Stockholm and
             The Hague)

             Working with a User Group of 20 interested cities throughout
             Europe

             Working with politicians

             6 User Group workshops to identify problems and offer
             solutions


Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                  Case Studies




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                         Case Studies - Oslo


             Since 1990 road and public transport investments in the Oslo
             region have been partly financed by a toll ring (Oslo Packages
             1 & 2)

             Oslo Package 2 ends in 2007. Results:
                  Raised revenue for infrastructure investment
                  Slower traffic growth than national average
                  Two thirds of the population is in favour of a new toll ring where
                  income is dedicated to public transport

             To prolong user payment beyond 2007, Oslo Package 3 will
             be presented to Parliament in two stages:
                  Price and discount system this autumn
                  Whole package towards the end of 2008




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                        Case Studies - Rome


             Since 2001, access to historical centre controlled
             by combined Access Control System and Road
             Pricing Scheme

             Restriction period 06.30-18.00 controlled through
             access gates and permits (OBU and smart cards)

             Benefits to date:
                  10% decrease in overall traffic throughout the day
                  15% decrease in the morning peak hour (08.30-09.30).
                  6% increased public transport use

             Future plans: tackle 2-wheelers and implement an
             evening extension (from 18.00 to 23.00)

Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                   Case Studies - Stockholm

             Full scale congestion tax trial Jan - July 2006

             Cordon around city centre with 18 control points, using ANPR
             and tag + beacon

             Variable pricing by direction and time of day

             Impact:
                  Traffic levels down 22%
                  6% increase in public transport use

             Referendum in Stockholm Municipality voted in favour of
             permanent scheme (September 2006)

             New government reinstated congestion tax in August 2007,
             using revenue to finance orbital motorway bypass
                  ANPR only
                  Some changes to exemptions
Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                      Case Studies - London

        Congestion Charging operational since 2003

       Cordon around central area – Western extension Feb
       2007

        ANPR technology
             Tag and Beacon being investigated


       Single daily charge to enter central zone

       Results
             Traffic entering zone decreased 18%
             Congestion decreased 26%



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                      Case Studies - The UK
                                                         national debate


        2003: London Congestion Charging: “It WORKS in a
          place like London!”

        2004: UK Government Road Pricing Feasibility Study -
          “It‟s feasible” (Again!)

        The Prime Minister says:
           “…national road charging may be feasible from
             2014… Government will lead the debate ”




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
         February 2007: 1.8m people “sign” an electronic
           petition against road pricing on the Prime
           Minister‟s website

         “Thousands join the fight against road pricing”
         Daily Telegraph, Wednesday 10th January 2007

         “Blair e-mails 1.7 million people to defend road-
            pricing plans”
         The Times, Wednesday 21st February 2007

         “Road pricing is not a stealth tax, says Blair”
         The Guardian, Wednesday 21st February 2007


Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                    UK Transport Innovation
                                                            Fund




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                   State of the Art Review




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                      State-of-the-Art Report

             Rolling annual review
             First version May 2007


             100 pages of expert opinion on:
                  Policy objectives
                  Scheme design
                  Acceptability
                  Impacts on urban economy
                  Equity issues
                  Technology
                  Environment
                  Transferability
                  Prediction, Appraisal and Evaluation

Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                  Objectives of road pricing
                                                          schemes

     •   Efficiency
     •   Equity and social inclusion
     •   Environment
     •   Revenue raising
     •   Economic growth
     •   Health / Safety / Liveability
     •   Future generations


Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                               Ranking of Objectives (User
                                                     Needs Survey)




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                            Scheme Design



     • Charging regime
                • Area licence
                • Cordon
                • Distance or time
     •   Level of charge
     •   Times / areas of charge
     •   Exemptions
     •   Technology
Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                 Prediction


           – Empirical survey work and model-based studies
             designed to test scheme options
           – Prediction covers:
                •   Type of scheme
                •   Demand impacts
                •   Supply impacts
                •   Second order impacts
                •   Objective output indicators
                •   Short and long-run impacts
           – Many knowledge gaps



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                  Appraisal

           – Evaluation is extremely important to the
             decision-making community
           – Ranked 5 out of 9 in the UNAQ survey,
           – Closely linked to Prediction
                • Expected impacts and actual impacts




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                    Impact on the Economy

     London
        – Business surveys show recognition of transport benefits from
          congestion charging
        – Congestion Charging has had broadly neutral impact on central
          London economy
     Norway
        – Chamber of Commerce reported no significant effect on trade
     Stockholm
        – Impact of congestion tax upon consumer purchasing and
          transport costs for companies very slight
        – Freight users responded by:
            • Increasing productivity
            • Switching to untolled roads
            • Passing costs onto consumers



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                     Equity


    • Concern over inequity frequently cited as reason for
      rejecting road pricing proposals
               • Flat road pricing charge could be “regressive” – unfair on the poor
               • Greater benefits for the wealthy?


    • Vertical Equity
               • Distribution of impacts by income and socio-economic
                 characteristics


    • Horizontal Equity
               • Impact on people living in different areas or making differing types
                 of journeys




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                      Equity

     • Revenue distribution has an impact on equity
     • Spatial impact of road pricing cordons
                • Boundary effect
                • Singapore experience suggested benefit to firms outside
                  cordon
     • Edinburgh proposals deemed largely
       inequitable due to range of exemptions to the
       charge
     • Little empirical research on equity impacts
     • Clearer guidance needed on ways of designing
       schemes to reduce inequities



Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                Acceptability


     1.        The Public
     •         Linked to:
           –     Scheme Characteristics
                 •    Objectives
                 •    Hypothecation of revenues
                 •    Scheme design: Level of charge, boundaries, cut-off times
           –     Implementation Process
                 •    Attitudes towards road pricing changes between before and
                      after scenarios
                 •    Acceptability generally increases post RUC implementation
           –     Political Acceptability
                 •    Very important in order to gain successful implementation
                 •    Strong political commitment vital (“political champion”)




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                               Acceptability

     2. Business
           –     Important community
           –     Generally sceptical towards the concept of RUC
           –     Retailers within charging zone fear unfair
                 competition with those outside the charging zone
           –     BUT…..Expectations do not necessarily follow in
                 reality:
                •     Trondheim Chamber of Commerce reported that the
                      Norwegian toll ring had no effect on trade
                •     Business Acceptability seems to follow the same trend as
                      that of the public in that support seems to rise post
                      scheme implementation




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                                Acceptability


     3. Media
           –     Can influence opinions of all stakeholders

           –     Unbalanced coverage likely to highlight the
                 „negative‟ aspects of RUC with no thought to the
                 „positive‟ benefits

           –     Successful scheme promoters get the media and
                 other key stakeholders “onside” at an early stage




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                             Transferability


     • Important for advancing knowledge about the
       state of Road Pricing schemes

     • Congestion cost and the optimal level required
       to internalise externalities vary widely between
       areas

     • Successful implementation in one city does not
       imply successful implementation in another city




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                               Links




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                  www.transport-pricing.net/




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07
                                                         Further information




                       Project website: www.curacaoproject.eu

                           Project email: curacao@ttr-ltd.com
                           Project office: +44 (0)117 907 6520

                                David.blackledge@ttr-ltd.com




Imprint-net second conference – Implementing Pricing Reforms in Transport. Brussels, 16/10/07

				
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