The Distributional Impact of Various Road Charging Schemes for London.

This Working Paper presents results obtained using the MVA START model for London, with the primary intention of investigating the distributional impact of road pricing in various forms and at various levels. In order to look at distributional effects the START model had to be 'disaggregated' by income groups - three each for non-car owning and car-owning households. Initially, this allowed us to see the distributional impact of the LPAC Preferred Strategy, mainly involving public transport and traffic management policies. Beyond this we tested three structures (or 'regimes') of road pricing, varying from a complex three cordon plus screenlines structure, to a single Central London cordon. Somewhat surprisingly, the latter was found to be regressive in its application. The structure with the highest benefits, as well as being relatively progressive, was the complex structure of three cordons plus screenlines, with an optimum charge level of 50 pence per cordon crossing, each way but with the outer two cordons being peak only.