Charges are introduced in a world that is rife with other market imperfections and where other policy objectives than efficiency matter. Again, the question is if and how this affects recommendations for setting congestion charges. This is a subject of some controversy, but the emerging view is that charges should remain closely tied to marginal external congestion costs rather than adjusted to compensate for one or a range of other imperfections. There was some support for making the charge deductible from income taxes for commuters. However, this needs to be determined within the broader taxation framework and existing deductions for commuting expenses. Moreover, other forms of revenue use may have a better claim than tax deductions.
Recent advances in the scientific understanding of urban traffic congestion have only strengthened the already solid case for congestion charges as an element of a successful urban transport policy. This report draws lessons from attempts to introduce congestion charges.
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