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Fact Check: Does congestion pricing help decrease traffic?

By ·March 5, 2025

Yes

Existing congestion pricing schemes have generally shown to be effective in improving traffic flows, incentivizing commuters to car pool or take public transit to avoid charges.

Singapore was the first major urban area to operate a comprehensive congestion charging program. Car trips into central Singapore came down 10-15% in the two years after introduction of their 1988 Electronic Road Pricing scheme, charging for the use of main throughways.

London introduced congestion charging in 2003, with the goal of raising funds for public transport, reducing emissions, and limiting car traffic. Their efforts were also successful, reducing travel delays by 30%.

Despite initial public opposition, Stockholm implemented congestion charging in 2007 as a trial. This led to a 20-25% reduction in traffic volumes on most congested roads, a decrease in travel times, and a 4.5% increase in public transit use. The subsequent referendum on congestion pricing was easily approved.

  This fact brief is responsive to conversations such as this one.

Sources:

EconoFact | Can Congestion Pricing Help Solve Urban Traffic Problems?

U.S. Department of Transportation | Congestion Pricing: Examples Around the World

International Transport Forum | Long-Term Effects of the Swedish Congestion Charges

International Transport Forum | Congestion Control in Singapore


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