Congestion Pricing

Congestion pricing is a dynamic pricing strategy that adjusts demand by raising prices without increasing supply. Congestion fees are common in the transportation and shipping industry, but they are also used for services and utilities that change over time, such as electricity and telecommunications.

Congestion pricing is a system that charges customers who need temporary or periodically added services or products. Adjust excess demand by applying higher price during peak demand cycle

It is often used for traffic resources, but the congestion fee is not limited to traffic, it can be used for all services facing various levels of demand such as electricity. Crowded pricing should encourage users who can flexibly use time from peak to low cost. One criticism of congestion billing is that it behaves like a recurring tax and hurts low-income users more than other groups.

In recent years, companies such as Uber have introduced various types of congestion prices called surge prices in order to share additional passenger fee at peak hours.

The basic principle behind congestion pricing comes from the market economy and congestion pricing is considered a demand side solution to regulate traffic.

The objective use of convergence pricing is to raise the price to make the user aware of the cost imposed by the user when consuming resources during peak demand period. The theory is that consumers will use and waste more or less resources. By raising the price of a resource, the intention of the user to pay for this resource exacerbates the shortage of resources.

In 1952, the Nobel Laureate winner William Bickley initially proposed to add a distance or time-based fare system to the New York City subway to manage traffic congestion. Therefore, some people think that Bickley is a crowded pricing father.

Maurice Array, who received the Nobel Prize in economics, detailed the congestion pricing theory to manage traffic jams and became the key to designing the first road toll system in 1975. Implementation of the year

Most economists agreed with the economic viability of certain road tolls to reduce traffic congestion and congestion pricing reduced traffic congestion in urban areas that were implemented due to economic burden It is a fair strategy. Communities adjacent to congested traffic areas and retail and other economic activities located in these areas

The experiences from several cities that implemented congestion pricing suggests that social and political acceptability is important. Public dissatisfaction with congestion fee or refusal to recommend congestion fee is mainly due to inequality, the economic burden of neighboring communities, the impact on retailers and overall economic activities, concerns that income will be another concern tax It is due to. Congestion pricing is still very controversial by the people before and after implementation. This part was solved, for example, by a referendum after the trial period of seven months in Stockholm, but people living outside of the city often have to pay tax so people living in this area There is a benefit.

Implementing traffic congestion reduced traffic jams in urban areas, but it also caused criticism and public dissatisfaction. Critics claim that the congestion fee is unfair, places an economic burden on neighboring communities, adversely affects the retail industry and overall economic activity, and implies another taxation. However, an investigation of economic literature on this subject discovered that most economists believe that some form of road toll fee that reduces traffic congestion is economically feasible despite the form of road tolls did. Discrepancies Opinions are divided into two categories: how to set toll fee, how to pay common fee, how to handle excessive income, whether to compensate for "losers" of previous free road tolls, how to supplement that way, I do not agree to privatize.

Most economists agreed with the economic viability of certain road tolls to reduce traffic congestion and congestion pricing reduced traffic congestion in urban areas that were implemented due to economic burden It is a fair strategy. Communities adjacent to congested traffic areas and retail and other economic activities located in these areas