The term ‘congestion pricing’ is used to describe a distance, area or cordon-based road user charging policy around congested areas to reduce the use of private vehicles and increase the use of public transportation. Congestion pricing is also known as electronic road pricing. Drivers usually ignore the social costs of using the road and only calculate their benefits which result in traffic congestion and air pollution. Singapore was the first country to implement Congestion pricing in 1975, followed by London in 2003 and Stockholm in 2007. CPPR Research Intern, Devika P V writes…

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