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Traffic accidents and the London congestion charge

Author

Listed:
  • Colin Green
  • John Heywood
  • Maria Navarro Paniagua

Abstract

In a rare effort to internalize congestion costs, London recently instituted charges for traveling by car to the central city during peak hours. Although the theoretical influence on the number and severity of traffic accidents is ambiguous, we show that the policy generated a substantial reduction in both accidents and fatalities in the charged area and hours. At the same time, the spatial, temporal and vehicle specific nature of the charge may cause unintended substitutions as traffic and accidents shift to other proximate areas, times and to uncharged vehicles. We demonstrate that, to the contrary, the congestion charge reduced accidents and fatalities in adjacent areas, times and for uncharged vehicles. These results are consistent with the government's objective to use the congestion charge to more broadly promote public transport and change driving habits.

Suggested Citation

  • Colin Green & John Heywood & Maria Navarro Paniagua, 2014. "Traffic accidents and the London congestion charge," Working Papers 66110088, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:66110088
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    References listed on IDEAS

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    More about this item

    Keywords

    Traffic Congestion; Pricing; Vehicle Accidents;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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