Author：Shunfeng Song
Date：2011-01-07
Summary：
This research presents the economic theory of congestion pricing. Making commuters pay a toll to internalize externality helps to correct market failure and mitigate urban traffic. A number of countries and regions have implemented congestion pricing, including Singapore, USA, and Europe. The international experiences demonstrate very positive consequences, such as significant traffic reduction, time savings, air quality improvement, and revenue generation.
With the sound economic theory and successful international practices, congestion pricing in China could become a reality. In fact, China could have a better feasibility of implementing congestion pricing in major cities due to less regressive congestion charges and fewer institutional barriers.
Keywords：Congestion Pricing
