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Congestion Pricing in Transport

a pricing strategy that regulates demand without increasing the supply

Congestion pricing entails surcharging users in excess demand situations for public transport, electricity, data and communications and road pricing to reduce traffic congestion. The policy objective is to leverage cost to make users sensitive when consuming during peak demand and pay for additional congestion, encouraging demand redistribution.

Implementation have reduced congestion in urban environments; however, critics point out that the system is not equitable even as many economists believe in the effectiveness of road pricing in some form. Four types are in use:

a cordon around downtown areas;

area wide congestion pricing;

city center toll ring, and

congestion pricing, where access to a location is priced.

Economic rationale at zero cost, demand exceeds supply, causing shortages corrected with equilibrium prices instead of increasing supply; this entails price increases when and where congestion occurs.

congestion pricing is one demand side efficiency strategy

A quantity supplied is less than the quantity demanded at what is essentially a price of zero. If a service is provided free of charge, people tend to demand more and waste it instead of paying the price that reflected its cost. Congestion pricing charges help allocate resources to their most valuable uses.

Road congestion pricing is found almost exclusively in urban areas and city centers whereas cordon area pricing is a fee paid by users to enter a restricted area. Its effectiveness has improved with technological advances in toll collection.

Cities that have implemented congestion pricing schemes show traffic volume reductions from 10% to 30% as well as reduced air pollution. In some locations, net earnings are invested to promote mobility management, reduce air pollution, initiate pedestrian and cycling strategies as well as upgrade public transportation.

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Shared Mobility and Transit Logistics

public transit ride sharing car and shuttle services

bus rapid transitShared Transport has grown in recent years along with increased interest in urban redevelopment, environmental, energy and economic concerns. Wireless technology now provides innovative solutions. In terms of mobility, first and last mile solutions that help reduce traffic congestion and transit costs.

Car Sharing is a service that provides members with access to transport for hourly use. The shared cars are accessed with a reservation; charges are by time or mile. Benefits include affordable access, less dependence on fossil fuels and incentives to walk, cycle and public transit use.

Shared Trucks and Cargo Bikes Deliver at Lower Costs in the Commercial Sector

autobus d'epocaPublic Transit there is an untapped potential to integrate and offer shared modes to increase access and lower costs. Efforts are underway to develop integration platforms that cross modes and aggregate information about available transit options so that users can choose from a real-time menu to get to their destination, including transit, taxi service, cars or ride sharing.

Bike Sharing Systems Worldwide Have Grown from 74 to over 1000 since 2005

San Candido-Lienz1Bike Sharing encourages individuals the use of multiple transportation modes. Benefits range from increased mobility and health benefits to reduced fuel use. The objective is to integrate cycling into the daily transport network for commuting, personal trips and recreation. Publicly owned, contractor and nonprofit operated programs utilize IT-driven real-time information use technology to assist in demand management throughout a community.

The Story of Mobility in America

Transit LogisticsRide Sharing includes car and van pooling for commuters traveling to/from their place of employment as well as real-time ride sharing services through a mobile app before the trip starts and through which the passenger pays a share of the trip cost.

Ride-Sourcing providers operating as Transportation Network Companies (TNCs) use online platforms to connect passengers with drivers who use personal, non-commercial, vehicles. These companies are using traditional ride sharing, i.e. the sharing of one vehicle by multiple riders to reduce vehicle trips.

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