THE INTEGRATION OF ROAD PRICING WITH LAND USE PLANNING

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THE INTEGRATION OF ROAD PRICING WITH LAND USE
PLANNING

• David Banister
• University College London

Presentation for the IMPRINT Thematic Network
Workshop Brussels, May 2002
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• Context
• EU White Paper on Transport Policy for a
  policy sustainable transport mobility
• Fair and efficient pricing
• Investment in transport infrastructure
• Achievement of modal shift
• Need also to push on other fronts such as land
  use and development and complementary macro
  economic policies to shift taxation towards
  consumption use of best available technology.

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• Role of Land Use Planning
• Reduce journey lengths higher use of public
  transport and green modes of transport
• Encourage trip chaining location of services
  and facilities in close proximity
• Promoting high quality public transport
  interchanges that people want to spend time at
  with facilities transport development areas
• Act in support of transport measures such as road
  pricing so that intentions match outcomes

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• Cordon Pricing in London
• A unique opportunity to research some of these
  issues to reduce levels of car use in the
  central area and to raise revenue for investment
  in transport.

• Equity
• Acceptability
• Boundary effects
• Environmental benefits

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• Land Use Impacts of Congestion Pricing

• Short Term Impacts variable in location and
  intensity.
• Review of use and size of vehicles by businesses
  in the cordon area. Review by possible movers
  into cordon area.
• For workers travel to work costs increase
  some still use their vehicles, others switch to
  public transport question of payments by
  employers
• Other travellers, already mainly use public
  transport so little change
• Suppliers will pay charge and pass it on to
  customers so some increases in prices

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• b) Longer term impacts land use and property
  changes need to understand the process of
  change and the theory of change
• Commercial operations
• Household and corporate activities
• Factors of production

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• 5. The Arguments
• The low cost of transport argument transport
  costs are a low part of total production costs
  and so road pricing will have little impact on
  firms decisions other factors such as
  availability of skilled labour, suitable sites,
  grants and environmental quality more important
  but effects may be felt at the margin
• The geographic concentration argument
  production concentrates at locations with higher
  costs, but better access (Krugman, 1991). With
  sufficiently strong returns, all production is
  located at one point. For road pricing, the
  benefits from time savings must be greater than
  the costs imposed.

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• The economic theory argument benefits from a
  change in transport costs is reflected in the
  land market and in rent levels some businesses
  may choose to release increased capital value
  but transport change has to be related to other
  wider effects in the economy.
• Monitoring is required for the land use and
  property markets difficulty of setting up
  causal linkages either conceptually or
  empirically need for dynamic analysis.
• Monitoring is required for the housing market
  note that residents obtain a 90 reduction in
  charge. May encourage infill and higher density
  development, which in turn may reduce benefits.

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• City dynamics and the role of proximity how the
  different arguments and elements work in
  combination. Whether over the longer term, road
  pricing encourages concentration or dispersal of
  land uses.
• Dispersal is already taking place in many cities
  benefits from agglomeration may be constant as
  the costs of transport increase (Kirwan, 2001).
• If sustainable development is key, then policy
  should be directed at concentration the role of
  road pricing is unclear here.
• McCann (1995) costs of overcoming distance
  (transaction and factor efficiency costs) and the
  costs of being located at one point in space
  (agglomeration economies)

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• Comments
• Impacts of congestion charging in London must be
  seen as a small part of the dynamic of city
  development. The impact will be variable, by
  industry, location and time.
• Possible impacts
• Small changes in traffic depends on who will
  pay
• Some reductions in congestion perhaps not
  measureable some increases in bus reliability
• Little change expected in existing businesses
• May be some disincentive for new businesses to
  locate in central London
• May encourage higher value activities in the
  Centre
• Little change in property and rental costs in the
  Centre
• Most impacts likely on marginal businesses

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• 7. Research Requirements
• Development of theoretical understanding through
  the theory of change
• Monitoring of key indicators before, during and
  after implementation to include land values,
  property prices, rent levels, employment, and
  marginal users of Central London
• Targeted case studies to establish detailed
  impacts on land use and development local level
  analysis
• Monitor media and press coverage to determine
  public acceptability and help identify
  modifications
• Systematic empirical data collection to provide
  input to economic and land use models to improve
  our understanding of the processes at work