Sydney Considering Road Congestion Pricing

17 July 2006 - 12:00pm

While a London-style congestion charge is unpopular with voters, experts agree that a congestion pricing scheme for major arterial roads is the only way to solve the city's traffic problems.

"A city-wide tolling system that charges motorists for using main roads at the busiest times of day has been proposed as a radical solution to Sydney's traffic nightmare. Although politicians and motorists reject a London-style congestion tax, experts yesterday said variable tolling on arterial roads could be the only way to fix the city's gridlock.

The satellite technology that would enable it is around the corner, while peak-period tolling is already operating in several overseas cities to discourage drivers.

Peter Stopher, a professor of transport planning at the University of Sydney, said a city-wide charge would be more effective than a CBD congestion tax. 'What we would do is charge people according to how much they're driving, where and when,' said Professor Stopher, of the Institute of Transport Studies."

Source: The Sydney Morning Herald, July 4, 2006

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The Sydney C of C Does Not Understand Congestion Pricing

The Sydney Chamber of Commerce comments:
"A congestion tax would be a disaster for businesses and residents, and would do nothing to address the underlying cause of congestion,"

Wrong on both counts.

If you have congestion pricing on all the major arterials of the region, no district will suffer a major loss of business to other districts without congestion pricing. This is an advantage over Central Business District congestion pricing.

An underlying cause of congestion is that, if you give away a scarce and valuable commodity for free, you will create shortages. If we gave away free gasoline or free caviar, we would create shortages. Because we let people drive for free on scarce urban land, we create shortages of land to drive on - commonly called congestion. The Chamber of Commerce should have learned this in Economics 101.

Charles Siegel

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