Congestion in the South East
The problem of congestion in South East, particularly London, is a
great
one. Throughout the nineteenth and twentieth centuries increased car
use
was seen as part of growing economic progress, but now we aware of the
negative externalities caused by it, congestion and pollution,
something
must be done to restrict road use.
Congestion in London is a massive problem. It causes unsightly
gridlocked
roads, difficulties in travelling around, and causes businesses to use
extra
vehicles to be able to carry out their work efficiently, thus adding
to the
problem further. To tackle this problem, there are two methods of
restricting car use in London. One is using direct
controls/interventions,
e.g. yellow lines, full pedestrianisation, traffic wardens etc. The
other
is the use of the price mechanism, e.g. road pricing, taxes, public
transport subsidies etc.
The fundamental difference between the two methods is that whereas a
direct
control bans use of a good/service, the price mechanism will restrict
its
use by making its users pay the full social cost for it. Relating this
idea
to road use, this can be an advantage of using a direct control. To
ban
cars from parts of the South East (i.e. pedestrianisation or perhaps
use of
double yellow or red lines) would be certain to work, whereas making
people
pay to use their cars would not, and its effectiveness would depend on
the
price elasticity of demand of car use. Another advantage of using a
direct
control is that if you did not wish to ban the use of cars altogether
you
could at least accurately limit ...
... middle of paper ...
...targeted and
distinguishes
(unlike road tax) between those who use Central London's roads at
rush-hour
and those who drive through the countryside at night. This would
create
revenue that could be redirected into improving public transport. This
system would also be more likely to create equity. What this means is
that
road users would pay for the negative externalities which they
themselves
create, whereas an increased petrol tax charges all drivers
regardless.
However, this is one disadvantage of using the price mechanism - no
matter
what price, or type of price is imposed, the poor are always going to
be hit
harder than the rich. A £5 fee for using London's roads will be a
significant amount for those on benefits, less so for BMW driving
Company
Executives.
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