[lbo-talk] London congestion charge

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Apr 9 16:30:01 PDT 2008


James writes:


> most of the revenue disappears in administration costs.

I saw a nice chart that showed that after 5 years and including startup costs, the London scheme has netted ~10M GBP on a little over 1B GBP of revenue. Oh, and an important measure of success -- average 'excess delay' -- is exactly where it was when they started. So: a big transfer of wealth, sure; not so much on the helping fix the congestion problem or the raising money for the transit problem.

One really interesting effect has been a nice roller coaster:

- Lots of license plates were stolen to avoid the charge (the AAA suggested in 2006 that 1/250 of the cars in the zone are using a stolen plate); someone else gets the bill and has to spend time proving they weren't where the camera says they were (factoid: in 2005, 65,000 tickets were given; about 2000 were ultimately collected)

- Enforcement changed, spy-vs-spy-style, and compliance has gone up

- Expected revenue dropped because, shockingly, fewer people get fined now

Oops, there goes your rosy revenue model projections; time to raise the fee!

And on,

/jordan



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