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https://hdl.handle.net/10356/146475| Title: | The cost of traffic : evidence from the London Congestion Charge | Authors: | Tang, Cheng Keat | Keywords: | Business::General::Economic and business aspects | Issue Date: | 2021 | Source: | Tang, C. K. (2021). The cost of traffic : evidence from the London Congestion Charge. Journal of Urban Economics, 121, 103302-. doi:10.1016/j.jue.2020.103302 | Journal: | Journal of Urban Economics | Abstract: | This paper exploits the implementation of the London Congestion Charge (LCC) to provide credible estimates on the willingness to pay to avoid traffic using the housing market. This policy curtails road traffic by imposing a fee on anyone driving into the charge zone. My results show that the LCC is associated with significant improvement in traffic conditions and housing values. Instrumenting local traffic conditions with the enforcement of the LCC, and limiting the analysis to properties proximate to the charge boundary, I find that the elasticity of housing values with respect to traffic is -0.30. These findings suggest that the consequential improvement in traffic conditions due to the LCC has generated substantial windfall of more than £3.8 billion for homeowners in the zone. | URI: | https://hdl.handle.net/10356/146475 | ISSN: | 0094-1190 | DOI: | 10.1016/j.jue.2020.103302 | Schools: | School of Social Sciences | Departments: | Economics | Rights: | © 2020 Elsevier Inc. All rights reserved. This paper was published in Journal of Urban Economics and is made available with permission of Elsevier Inc. | Fulltext Permission: | open | Fulltext Availability: | With Fulltext |
| Appears in Collections: | SSS Journal Articles |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Congestion_Charge (8).pdf | Accepted Version | 1.96 MB | Adobe PDF |  View/Open |
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