Road Pricing & Delivery Vehicles

At the risk of this blog losing its (already vague) focus, I thought I'd post some of my thoughts on congestion charging, a form of road pricing. Over at the Cambridge Network social network there's been a thread on this precise subject, as there are proposals for such a scheme in Cambridge, UK. So I'm now cross-posting my thoughts here.

As regards congestion charging being good/bad for business, it's really dependent on the increased value it generates versus the costs. In the case of deliveries, it can be argued that the less time spent in traffic jams, the lower the fuel costs, and also the more deliveries per day a single van can make. If deliveries during rush hour are essential, then the above benefits apply. If not, then (with a time-varying charge) the delivery firm would not incur the charge.

Meanwhile, if a charge means that people spend less time in traffic jams and more time at work or at home, employers are likely to benefit. The real problem with evaluating many congestion charging schemes is the cost that's attached to current levels of congestion. Estimates in 2004 were £12bn/year for all of the UK (Feasibility Study of Road Pricing in the UK, Dft, 2004). Similarly, in the USA, the 2003 estimate in the Texas Urban Mobility Report was $63bn/year.

The real question is therefore whether people appreciate what the cost of their causing congestion is.