Source; EIU

While a range of capital investments and policy options are available to policymakers seeking to curb congestion in Central Europe’s leading cities, the evidence from a growing number of operational examples suggests that traffic can best be beaten by introducing road-user charging. This is the key finding in Driving Change: How policymakers are using road pricing to tackle congestion, a newly-released report from the Economist Intelligence Unit, sponsored by IBM.

Traffic congestion in urban areas is a massive problem in Europe—and it is set to get worse before it gets better. Car ownership has risen ten times more quickly than the population over the past fifteen years in the EU, and it has risen even more quickly in the rapidly expanding markets of Central Europe.

Policymakers have a large arsenal of tools at their disposal to keep cars on the move, but in recent years interest has risen in the use of road-user charging to tackle congestion. “Road-charging solutions elegantly match the real cost of congestion to society and the actual cost of driving for the user,” says Matthew Shinkman of the Economist Intelligence Unit. “More importantly, it appears to work more effectively, more efficiently, and more quickly than many other options available to policymakers”. Vladimir Aninoiu, IMT Leader for Developing Markets IBM CEMAAS, says, "When physical highways reach capacity, it’s time to turn to information highways. If implemented correctly and on a timely basis, technological solutions can improve traffic flow before it gets worse”.

According to the report, local authorities must:

Establish a clear objective and design to meet that objective: In London and Stockholm, the clearly focused objectives of the schemes made it easier to design systems that would achieve those objectives. In Edinburgh, the lack of a clear objective weakened the hand of municipal officials trying to sell the idea to the electorate.

Get the technology right: The technology must be robust, as early failures will doom road-pricing projects which are likely to be controversial already. For example, in-built redundancy is important in ensuring a system will stay running all the time

Manage costs: The Economist Intelligence Unit's research points out that it costs 20 cents to collect one euro in Stockholm, and as much as 60 cents in London. System complexity drives cost, but legal frameworks and procurement processes also have the potential to add unforeseen cost down the road.

Understand the legal framework: In most cases road-user charging systems will require changes in the legal framework with respect to how, when, and by whom people can be charged to drive.

Identify a visible problem: Authorities must be clear that congestion is a real problem for day-to-day car users, and must be able to show that they have tried other, less radical approaches first.

Sell the benefits: Clear and ongoing communication of the benefits of the programme is essential to maintain public support. Even cities which have had schemes in place for years, like Trondheim, find that support falls over time if this is not done right.

Get the timing right: Going to the voters too early can be disastrous, as in the failed attempt to introduce road pricing in Edinburgh. It is very difficult to convince voters to pay for a scheme before they’ve seen the benefits, but support tends to rise after scheme implementation, making a later vote more likely to succeed.

Keep it fair: The system must be fair, and must be perceived as fair by users. This means making sure cheaters are caught, including elements which will soften the blow for vulnerable segments of society, and convincing users that it’s more than just a money-making scheme for the government.

Sweeten the pill: It is crucial to clearly earmark the revenue from the scheme. In London, revenues go to the bus system, while in Oslo they are used to build more roads. The failure to assign revenues clearly opens officials up to the charge that the scheme isn’t really about reducing congestion.

Lead from the front: Most successful European road-user charging schemes have benefited from high-profile political leadership.

Driving Change: How policymakers are using road pricing to tackle congestion:
is available free of charge here.