Road Pricing, Road Pricing

Some of these could exploit the new Galileo satellite positioning system, although it is possible to arrange road pricing using various different technologies. A satellite based system would entail vehicles containing a satellite tracking device which would determine which roads were being driven along, for how far and at what time of day. This information would then be sent to a central computer system, and the appropriate charges levied against the driver.

The congestion charges were implemented as part of a comprehensive package of road pricing and harsh supply restraints, in recognition of the country's land constraints, need of economic competitiveness, and to avoid the traffic gridlock that chokes many cities in the world.

Road pricing has the possibility of being a regressive tax, in that a flat-rate tax falls more heavily on poor drivers than the rich. A way for the government to deflect this criticism would be to use the toll revenue to reduce other, equally regressive taxes.

The ultimate fairness of road pricing is only determined once the use of any net revenues is taken into account.

Millward, David, " Road pricing revolt is gathering speed ", The Daily Telegraph , January 3, 2007.

Source: Wikipedia > Road Pricing