Congestion pricing is a surcharge system applied to public goods experiencing overuse, like roads, public transport, and utilities, during peak demand. It aims to manage congestion by regulating demand, effectively reducing overcrowding without needing to expand the supply of the good or service. Examples include higher fees during rush hour for buses, electricity, trains, roads (road pricing), airport slots, and canal usage. This approach encourages users to shift their consumption to off-peak times or explore alternative options, ultimately improving efficiency and reducing overall congestion.
1952: Vickrey Proposes Time-Based Fare System
In 1952, Nobel laureate William Vickrey proposed a distance- or time-based fare system for the New York City Subway.
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1964: Smeed Report Recommendations Rejected
In 1964, the Smeed Report, published by the British Ministry of Transport, considered congestion pricing but its recommendations were rejected by successive British governments.
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1968: First congestion pricing scheme at New York City airports in 1968
In 1968, the first congestion pricing scheme started with higher landing fees for peak-hour use by smaller aircraft at Newark, Kennedy, and LaGuardia airports in New York City. General aviation activity during peak periods decreased by 30% as a result.
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1972: British Airports Authority implemented first peak pricing policy in 1972
In 1972, the British Airports Authority (BAA) implemented the first peak pricing policy for commercial aviation, with surcharges varying depending on the season and time of day.
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1975: Singapore Implements Congestion Pricing
In 1975, Singapore became the first country to implement congestion pricing on its urban roads as part of the Singapore Area Licensing Scheme. This initial scheme included other comprehensive road pricing measures, stringent car ownership rules, and improvements in mass transit.
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1975: Singapore Area Licensing Scheme
In 1975, the Singapore Area Licensing Scheme became the first implementation of congestion pricing, combining road pricing measures, car ownership rules, and improvements in mass transit.
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1976: BAA raised peak charges in 1976
By 1976, the British Airports Authority (BAA) had raised these peak charges.
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1983: Hong Kong Pilot Test on Congestion Pricing
In 1983 Hong Kong conducted a pilot test on an electronic congestion pricing system which lasted until 1985.
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1984: London-Heathrow had seven pricing structures between 1976 and 1984.
London-Heathrow had seven pricing structures between 1976 and 1984.
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1985: End of Hong Kong Pilot Test on Congestion Pricing
The pilot test on an electronic congestion pricing system in Hong Kong ended in 1985 with positive results.
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1986: Bergen Introduces Tolled Entrances
In 1986, Bergen became the first city in Norway to introduce tolled entrances to the more central urban areas.
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1986: Bergen Pioneers Electronic Urban Tolling
In 1986, Bergen, Norway, pioneered the implementation of electronic urban tolling.
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1988: US carriers won international arbitration case against BAA in 1988
In 1988, US carriers won their international arbitration case against the British Airports Authority (BAA).
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1988: Higher landing fee for smaller aircraft at Boston's Logan Airport adopted in 1988
In 1988, a higher landing fee for smaller aircraft at Boston's Logan Airport was adopted, leading to much of general aviation abandoning Logan for secondary airports.
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1990: Oslo Implements Electronic Urban Tolling
In 1990, Oslo, Norway, implemented electronic urban tolling, leading to an unintended congestion pricing effect.
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1991: Trondheim Introduces Electronic Urban Tolling
In 1991, Trondheim implemented electronic urban tolling with congestion pricing effects due to charges varying by time of day.
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1991: Athens Airport and Hong Kong implemented congestion pricing measures in 1991
In 1991, the Athens Airport charged a 25% higher landing fee for aircraft arriving between 11:00 and 17:00 during the high tourism season. Hong Kong also charged an additional flat fee to the basic weight charge. Also In 1991, peak pricing at London's main airports Heathrow, Gatwick and Stansted was implemented; airlines were charged different landing fees for peak and off-peak operations depending on the weight of aircraft.
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1992: Autoroute A1 Implements Congestion Pricing
Since 1992, Autoroute A1 in Northern France has applied congestion prices during weekends to spread demand on the trip back to Paris on Sunday afternoons and evenings.
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1995: California's 91 Express Lanes Implementation
In 1995, California's private toll 91 Express Lanes in Orange County became one of the first practical implementations of high-occupancy toll (HOT) lanes.
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1996: Interstate 15 in San Diego Introduces HOT Lanes
In 1996, Interstate 15 in San Diego introduced high-occupancy toll (HOT) lanes.
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1998: Refinement of Singapore's Congestion Pricing
In 1998, Singapore refined its initial congestion pricing system implemented in 1975 to improve its effectiveness.
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1998: Singapore System Upgrade
In 1998, Singapore upgraded its existing congestion pricing system.
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2000: Reduction in vehicle kilometres in London
Between 2000 and 2012 there was an overall reduction of 11% in vehicle kilometres in London.
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March 2001: PANYNJ Implements Off-Peak Toll Discount
In March 2001, the Port Authority of New York and New Jersey (PANYNJ) implemented a discount on regular toll fees during off-peak hours for vehicles paying electronically with an E-ZPass issued in New York State.
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2001: Rome Implements Congestion Pricing
In 2001, Rome implemented a congestion pricing scheme.
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2001: Norwegian Parliament Approves Congestion Charges Legislation
In 2001, the Norwegian Parliament approved legislation to implement congestion charges in cities.
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October 2002: Durham Introduces Congestion Charges
In October 2002, Durham introduced congestion charges, leading to an 85% reduction in vehicle traffic after one year.
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2002: Edinburgh Initiates Congestion Pricing Implementation
In 2002, Edinburgh, United Kingdom, initiated an implementation process for congestion pricing.
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2003: London Congestion Charge Implemented
In 2003, London implemented a congestion pricing scheme.
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2003: Congestion Pricing Rationale Presented to US Congress
In 2003, testimony before the United States Congress Joint Economic Committee summarized the transport economics rationale for implementing congestion pricing, describing it as a response to the mispricing of highway capacity.
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2003: 2020 studies on effects of congestion pricing in Beijing and London
In 2020, a study of driving restrictions in Beijing estimated that congestion pricing implementation would reduce traffic, increase speed, reduce pollution and accidents, and increase tax revenues. Another 2020 study of London found that congestion pricing (introduced in 2003) led to reductions in pollution and driving overall, but it increased pollution from diesel vehicles.
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2005: Edinburgh Referendum Rejects Congestion Pricing
In 2005, a referendum in Edinburgh rejected the congestion pricing proposal with a majority of 74.4%.
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August 2006: Highest toll charged through Panama Canal Transit Slot Auction in August 2006
In August 2006, the highest toll for high priority passage through the Transit Slot Auction was US$220,300 charged on a tanker, bypassing a 90-ship queue due to maintenance, avoiding a seven-day delay. The normal fee would have been just US$13,430.
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December 2006: Singapore's Real-Time Pricing Pilot
In December 2006, Singapore's LTA, together with IBM, started a pilot program using a traffic estimation and prediction tool (TrEPS) for real-time variable pricing.
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2006: 2006 study on Stockholm's congestion pricing effects
A 2019 study of congestion pricing in Stockholm between 2006 and 2010 found that in the absence of congestion pricing that Stockholm's air would have been 5 to 15 percent more polluted between 2006 and 2010", and that young children would have suffered substantially more asthma attacks.
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2006: San Francisco Begins Feasibility Study
In 2006, San Francisco transport authorities began a feasibility study to evaluate the introduction of congestion pricing.
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2006: Stockholm Congestion Tax Trial
In 2006, Stockholm implemented a congestion tax as a seven-month trial.
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2006: TfL Observes Lower Traffic Flows and Speeds
In 2006, the last year before the London congestion zone was expanded, TfL observed that traffic flows were lower than in any recent year, while network traffic speeds were also lower than in any recent year.
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2006: Increase in road works by utilities and general development activity
Since 2006 there has been an increase in road works by utilities and general development activity
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2006: Panama Canal Authority launched high priority transit
Since 2006, the ACP has available a 25th slot, sold through the Transit Slot Auction to the highest bidder.
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April 2007: Completion of Singapore's Real-Time Pricing Pilot
In April 2007, Singapore and IBM completed a pilot program for real-time variable congestion pricing with a traffic estimation and prediction tool.
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August 2007: US DOT Selects Areas for Congestion Pricing Initiative
In August 2007, the United States Department of Transportation selected five metropolitan areas to initiate congestion pricing demonstration projects under the Urban Partnerships Congestion Initiative.
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2007: Stockholm introduced congestion tax permanently
In 2007 Stockholm introduced congestion tax permanently.
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2007: London Congestion Charge Extension
In 2007, London extended its congestion pricing scheme.
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2007: New York City Shelves Pilot Program Proposal
In 2007, New York City shelved a proposal for a three-year pilot program for congestion pricing implementation in Manhattan.
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2007: Western Extension in London
In 2007, the Western Extension in London was implemented.
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2007: Impact of congestion charge extension on London businesses in 2007
In 2007, the extension of the congestion charge in London had disputed effects on businesses. Some reports indicated heavy impacts due to lost sales and increased delivery costs, while others suggested higher productivity and profitability within the charge zone. Some claimed an average drop in business of 25% following the 2007 extension.
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2007: Work started on Panama Canal expansion in 2007
In 2007, work started on the expansion of the Panama Canal through a new third set of locks to solve long-term congestion problems.
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2007: Santiago de Chile Implements Congestion Pricing During Rush Hours
Since 2007, Santiago de Chile has used congestion pricing during rush hours to maintain reasonable speeds within the city core.
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January 2008: Milan's Ecopass Program Begins
In January 2008, Milan began a one-year trial program called Ecopass, which charged low emission standard vehicles and exempted cleaner vehicles.
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March 2008: PANYNJ Introduces Green Pass for Low-Emission Vehicles
Since March 2008, qualified low-emission automobiles are eligible to receive a Port Authority Green Pass, allowing for a 50% discount during off-peak hours.
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July 2008: London Cancels CO2 Emission-Based Pricing
In July 2008, Boris Johnson, the new Mayor of London, announced that the planned CO2 charging structure would no longer be implemented.
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October 2008: Proposal for CO2 emission rates based pricing in London
In October 2008, a proposal by former Mayor of London Ken Livingstone would have resulted in a new pricing structure based on potential CO2 emission rates.
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December 2008: San Francisco Presents Initial Pricing Scenarios
In December 2008, initial congestion pricing scenarios were presented at public meetings in San Francisco.
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December 2008: Greater Manchester Congestion Pricing Scheme Rejected
On December 12 2008, Greater Manchester's congestion pricing scheme was overwhelmingly rejected by a public referendum across 10 councils.
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2008: New York City Replaced in Congestion Pricing Initiative
In 2008, New York City left the Urban Partnerships Congestion Initiative and was replaced by Metro ExpressLanes in Los Angeles County.
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2008: New York City Proposition Denied
In 2008, a new congestion pricing proposition for New York City was denied, leading to the reallocation of potential federal grants.
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2008: West Midlands Councils Reject Congestion Pricing
In 2008, councils from across the West Midlands in the United Kingdom rejected the idea of imposing congestion pricing schemes.
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January 2009: Variable Tolls Implemented at Sydney Harbour Bridge
In January 2009, variable tolls were implemented at Sydney Harbour Bridge, marking Australia's first road congestion pricing scheme.
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2009: Commute Delays Reported at San Francisco–Oakland Bay Bridge
In 2009, commute delays in the first six months have dropped by an average of 15 percent compared with 2009 at the San Francisco-Oakland Bay Bridge.
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2009: Anticipated capacity limit of the Panama Canal between 2009 and 2012
The Panama Canal Authority (ACP) estimated that the canal would reach its maximum sustainable capacity between 2009 and 2012, prompting the expansion of the canal through a new third set of locks.
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July 2010: Congestion Tolls Implemented at San Francisco–Oakland Bay Bridge
In July 2010 congestion tolls were implemented at the San Francisco–Oakland Bay Bridge, with higher tolls during peak hours.
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November 2010: San Francisco Announces Final Study Results
In November 2010, San Francisco announced the final results of its congestion pricing feasibility study, proposing modified alternatives.
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2010: 2019 study on Stockholm's congestion pricing effects
A 2019 study of congestion pricing in Stockholm between 2006 and 2010 found that in the absence of congestion pricing that Stockholm's air would have been 5 to 15 percent more polluted between 2006 and 2010", and that young children would have suffered substantially more asthma attacks.
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2010: Congestion Pricing Proposed for Guangzhou
In early 2010, a congestion pricing scheme was proposed for Guangzhou, Guangdong province, leading to public discussion.
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2010: Time Differing Fees Introduced in Trondheim
Starting with Trondheim in 2010, time differing fees were introduced, so that rush hours cost more.
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January 4, 2011: London Removes Western Extension & Increases Basic Charge
On January 4, 2011, Boris Johnson removed the 2007 Western Extension from London's congestion charging zone and increased the basic charge to £10.
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September 2011: Plans for Congestion Pricing in Beijing Announced
In September 2011, local officials announced plans to introduce congestion pricing in Beijing.
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October 2011: Norway Announces Rules Allowing Congestion Charging in Cities
In October 2011, the Norwegian government announced rules allowing congestion charging in cities to cut emissions and relieve traffic.
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December 31, 2011: Milan's Ecopass Program Ends
On December 31, 2011, Milan's Ecopass program ended.
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January 2012: Brazil Enacts Urban Mobility Law
In January 2012, the federal government of Brazil enacted the Urban Mobility Law, authorizing municipalities to implement congestion pricing to reduce traffic.
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January 16, 2012: Milan's Area C Program Begins
On January 16, 2012, Milan replaced the Ecopass program with Area C, converting the scheme from a pollution charge to a congestion charge.
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April 2012: São Paulo Committee Approves Congestion Pricing Bill
In April 2012, a committee of the São Paulo city council approved a bill to introduce congestion pricing within the existing road space rationing area.
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November 2012: TfL Proposes Abolishing Greener Vehicle Discount
In November 2012, Transport for London (TfL) presented a proposal to abolish the Greener Vehicle Discount.
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November 2012: São Paulo Strategic Plan Proposes Congestion Pricing by 2025
São Paulo's strategic urban development plan "SP 2040", approved in November 2012, proposes the implementation of congestion pricing by 2025.
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2012: Increase in HOT/Express Lanes in the US
According to the Texas A&M Transportation Institute, by 2012 there were 294 corridor-miles of HOT/Express lanes and 163 corridor-miles of HOT/Express lanes under construction in the United States.
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2012: Reduction in vehicle kilometres in London
Between 2000 and 2012 there was an overall reduction of 11% in vehicle kilometres in London.
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2012: Anticipated capacity limit of the Panama Canal between 2009 and 2012
The Panama Canal Authority (ACP) estimated that the canal would reach its maximum sustainable capacity between 2009 and 2012, prompting the expansion of the canal through a new third set of locks.
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January 1, 2013: Hybrid Vehicle Exemption Date
On January 1, 2013, exemptions for hybrid electric and bi-fuel natural gas vehicles from Milan's Area C charge were initially scheduled to end.
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January 2013: Gothenburg Congestion Tax Implemented
In January 2013, the Gothenburg congestion tax was implemented, modeled after the Stockholm scheme.
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March 2013: Milan's Area C Scheme Made Permanent
In March 2013, Milan made the Area C congestion pricing scheme permanent. Net earnings are used for sustainable mobility and pollution reduction initiatives.
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April 2013: Urban Mobility Law in Brazil Goes Into Effect
In April 2013, the Urban Mobility Law in Brazil went into effect, allowing for the implementation of congestion pricing.
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July 2013: Ultra Low Emission Discount (ULED) Goes Into Effect
On July 1, 2013, the Ultra Low Emission Discount (ULED) went into effect, limiting free access to the congestion charge zone to selected vehicles.
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2013: 2013 study on driver satisfaction in Seattle
In 2013, a study found that after congestion pricing was implemented in Seattle, drivers reported greater satisfaction with the routes covered by congestion pricing and reported lower stress.
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2013: TfL Reports on Congestion Charging Scheme
In 2013, ten years since its implementation, TfL reported that the congestion charging scheme resulted in a 10% reduction in traffic volumes from baseline conditions, and an overall reduction of 11% in vehicle kilometres in London between 2000 and 2012.
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November 2015: Norway Implements Urban Charging Schemes in Additional Cities
As of November 2015, Norwegian authorities have implemented urban charging schemes in five additional cities or municipalities.
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December 2015: Beijing Announces Congestion Pricing Plans
In December 2015, the Beijing Municipal Commission of Transport announced plans to introduce congestion charges in 2016 as part of the city's motor vehicle emission control plan.
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2015: Proposed Trial in San Francisco
In 2015 a six-month to one-year trial was proposed in San Francisco.
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January 2016: Increased Congestion Taxes in Stockholm
On January 2016, congestion taxes were increased in the inner-city parts of Stockholm, and congestion tax was introduced on Essingeleden motorway.
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May 2016: Beijing Considers Congestion Charges by 2020
In May 2016, the Beijing city legislature announced it would consider levying traffic congestion charges by 2020 as part of measures to reform the vehicle quota system.
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June 2016: Commercial operation of expanded Panama Canal began in June 2016
In June 2016, the expanded Panama Canal began commercial operation. The new locks allow transit of larger, Post-Panamax ships, which have a greater cargo capacity than the current locks are capable of handling.
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June 2016: Beijing Departments Working on Congestion Pricing Proposal
As of June 2016, Beijing's environmental and transport departments are collaborating on a congestion pricing proposal.
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2016: 2016 studies on effects of congestion pricing in Singapore
In 2016, a study found that more people used public transportation due to increases in congestion pricing in Singapore. Another 2016 study found that real estate prices dropped by 19% within the cordoned-off areas of Singapore where congestion pricing was in place relative to the areas outside of the area.
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December 31, 2016: Hybrid Vehicle Exemption Extended
The exemption for hybrid electric and bi-fuel natural gas vehicles from Milan's Area C charge had been postponed until December 31, 2016.
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October 2017: Introduction of T-Charge in London
In October 2017, a new toxicity charge (T-charge) was introduced in London. Older and more polluting vehicles faced an extra £10 charge within the Congestion Charge Zone.
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2017: Cuomo Reintroduces Congestion Pricing Proposal
In 2017, Governor Andrew Cuomo reintroduced a congestion pricing proposal for New York City.
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March 2019: Cuomo's Congestion Pricing Plan Approved
In March 2019, Cuomo's congestion pricing plan for New York City was approved.
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April 2019: Expansion of T-Charge to ULEZ in London
On April 8, 2019, London's T-charge was expanded into the Ultra Low Emission Zone (ULEZ).
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2019: 2019 study on Stockholm's congestion pricing effects
In 2019, a study found that without congestion pricing between 2006 and 2010, Stockholm's air would have been 5 to 15 percent more polluted, leading to more asthma attacks in young children.
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2019: Average Round Trip Price on Interstate 66 in Washington, D.C.
In 2019, the average round trip price on Interstate 66 in the Washington, D.C., metro area was $11.88.
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2020: 2020 studies on effects of congestion pricing in Beijing and London
In 2020, a study of driving restrictions in Beijing estimated that congestion pricing implementation would reduce traffic, increase speed, reduce pollution and accidents, and increase tax revenues. Another 2020 study of London found that congestion pricing (introduced in 2003) led to reductions in pollution and driving overall, but it increased pollution from diesel vehicles.
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2020: Average Round Trip Price on Interstate 66 in Washington, D.C.
In 2020, the average round trip price on Interstate 66 in the Washington, D.C., metro area was $5.04.
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2020: Congestion Pricing Costs in Oslo
In 2020, the price to enter Oslo to the inner city and leave by passing five stations costs NOK 126 (€10,66).
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2021: 2021 study on CO2 emissions reduction due to congestion pricing
In 2021, a study found that congestion pricing reduced CO2 emissions through downsizing commuting distances and housing sizes.
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2021: Average Round Trip Price on Interstate 66 in Washington, D.C.
In 2021, the average round trip price on Interstate 66 in the Washington, D.C., metro area was $4.75.
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May 2023: MTA Finalizes and Publishes Environmental Assessment
In May 2023, the Metropolitan Transportation Authority (MTA) finalized and published the Environmental Assessment (EA) of the congestion program, including a public comment period.
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June 12, 2023: End of Public Comment Period for EA
The public comment period for the Environmental Assessment (EA) of the congestion program ended on June 12, 2023.
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June 22, 2023: FHWA Publishes Finding of No Significant Impact
On June 22, 2023, the Federal Highway Administration (FHWA) published its Finding of No Significant Impact (FONSI) decision of the congestion pricing project.
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June 26, 2023: Federal Approval for NYC Congestion Pricing
On June 26, 2023, the Federal Highway Administration gave its final approval for New York City's congestion pricing plan, allowing the MTA to set toll rates.
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June 2024: NYC Congestion Pricing Plan Postponed
On June 5, 2024, Governor Kathy Hochul announced the indefinite postponement of New York City's congestion pricing plan, originally scheduled for implementation on June 30, 2024.
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October 2024: Thailand Announces Congestion Charge Plans for Bangkok
In October 2024, Thailand's Ministry of Transport announced plans for a congestion charge in inner Bangkok to subsidize railway fares.
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November 2024: NYC Congestion Pricing to Move Forward at Reduced Rate
In November 2024, Governor Hochul announced an intent for the toll to go forward with a planned implementation in 5 January 2025, at a reduced rate.
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January 2025: Planned Implementation in NYC at a reduced rate
On January 5, 2025, toll implementation in NYC is planned to move forward at a reduced rate.
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2025: Congestion Pricing Implemented in New York City
Congestion pricing in New York City was implemented in 2025, with charges for most vehicles entering Manhattan south of 60th Street that vary throughout the day.
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2045: Projected impacts of congestion pricing in 2045
In 2045, projections indicated a 10.4% reduction in crossings from Brooklyn to the congestion zone, including the BQE, Manhattan and Brooklyn Bridge. There would also be a 5.4% decrease in vehicles on FDR Drive. These reductions represent 16,000 to 42,000 fewer people accessing the congestion zone in a private automobile on an average weekday.
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2045: Projected impacts of congestion pricing in 2045
In 2045, projections indicated a 10.4% reduction in crossings from Brooklyn to the congestion zone, including the BQE, Manhattan and Brooklyn Bridge. There would also be a 5.4% decrease in vehicles on FDR Drive. These reductions represent 16,000 to 42,000 fewer people accessing the congestion zone in a private automobile on an average weekday.
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