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PRICING GOES GLOBAL 35 In the field of transport pricing, the European Trans- Pricing measures are effective in changing people's port White Paper, published in 2001, defines the follow- behavior and travel patterns. Experiences with the lim- ing long-term policy objective: "gradually . . . replace ited traffic zone in Rome show a 10% reduction of the existing transport system taxes with more effective instru- daily traffic. A test in Bristol showed reductions of 15% ments for integrating infrastructure costs and external to 20% in daily car travel during periods of poor air costs." It goes on to identify charges for infrastructure use quality, mainly caused by car drivers switching to public and the fuel tax as two such instruments. In recent transport. Car users change timing, route, or destination months, the European Commission has presented pro- more easily than mode. posals for directives on the charging of heavy goods vehi- By making pricing part of a package of measures, it cles on the trans-European transport network and on can be made acceptable. Intelligent marketing and clear electronic charging systems. The last directive intends to political leadership are essential. A lengthy and complex move Europe toward satellite-based road user charging. process can be necessary to gain support, and the media Over the past 10 years the European Commission has play a key role. Proposed approaches should have a clear cofinanced a substantial body of research and demon- purpose and well-defined objectives. Exemptions to the stration projects in the field of urban pricing. The latest scheme are needed for equity reasons, and the manage- of these is the Pricing Road Use for Greater Responsibil- ment of exemptions can require significant organizational ity, Efficiency, and Sustainability in Cities (PROGRESS) effort. project, which is producing interesting results based on practical experiences. The majority of European cities testing road pricing thus far have not yet fully imple- EVALUATION OF SINGAPORE'S ELECTRONIC mented their pricing schemes, but data are gradually ROAD PRICING SYSTEM becoming available. The following table shows the Euro- pean cities that are starting to produce data; participants Gopinath Menon in the PROGRESS project appear in bold. In 1975, Singapore introduced a manual (i.e., nonelec- Development Full Pilot/ tronic) cordon-based road pricing system that used area of Full Pricing Demonstration licenses to control congestion in the city area. In 1998, Scheme Scheme Scheme this was converted to a fully automated electronic road pricing system (ERP) that uses a dedicated short-range Trondheim Rome Bristol radio communication system in the 2.40-GHz band. Oslo London Edinburgh The ERP is in operation at 28 entry points into the city Bergen Durham Genoa on weekdays from 7:30 a.m. to 7:00 p.m. and at 17 Stockholm Copenhagen points along congested stretches of expressways and Gothenburg major roads on weekdays from 7:30 to 9:30 a.m. Given the ERP's intent to charge vehicles for road These cities' approaches vary both conceptually and use when and where they cause congestion, the system in the technologies applied. Some existing pricing pro- functions as a pure demand management measure. grams (Trondheim, Rome) will be expanded on a trial Entry points have overhead gantry signs. All vehicles basis during 2004. The plan in Stockholm is for a full- have fitted an in-vehicle unit, which is a pocket-sized scale cordon pricing scheme that will be launched early transponder. Payment occurs via a smart card, which is in 2005. The Stockholm population will be able to give issued by a consortium of banks. It is an active system in its views on the scheme in a referendum in 2006. that deductions are made instantaneously from the The experiences and conclusions of the different smart card when the vehicle goes under the ERP gantry. urban road pricing research and demonstration projects The details of the last 25 ERP transactions are held in in Europe thus far can be summarized as follows: the smart card. Photographs of rear license plates ensure that drivers of violating vehicles have to pay a fine. Urban pricing is possible with the use of existing The capital cost of the ERP was S$197 million (US$1 and emerging technology. However, challenges persist. = S$1.76). Annual operating costs are S$16 million, and For example, further development of satellite-based annual revenue is S$80 million. The system has proved technology is needed. In urban areas other technological to be reliable over the past 5 years. or nontechnological solutions will need to be part of Different classes of vehicles pay different charges on such systems. The European Galileo satellite network the basis of passenger car unit equivalents. ERP rates will improve satellite reception. The installation of the are reviewed at 3-month intervals and are based purely onboard equipment is complex, and retrofitting can on prevailing traffic speeds along the roads. The ERP cause problems. aims to maintain a speed range of 20 to 30 kilometers