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There are two criticisms of Londons congestion charge that are so serious that it should be scrapped. The first is that driving a car is a necessity for most people: demand will be so inelastic that drivers will not alter their behavior. The second is - Essay Example

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The London congestion zone is one of the largest congestion charge zone in the world that aim at reducing congestion and generating investment funds to London’s transport system. In this perspective, the fee is charged on most motor vehicles that wish to operate within the…
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There are two criticisms of Londons congestion charge that are so serious that it should be scrapped. The first is that driving a car is a necessity for most people: demand will be so inelastic that drivers will not alter their behavior. The second is
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There are two criticisms of Londons congestion charge that are so serious that it should be scrapped. The first is that driving a car is a necessity for most people: demand will be so inelastic that drivers will not alter their behavior. The second is

Download file to see previous pages... The objectives of congestion charges are to minimize lingering environmental effects, congestion in central London and to raise funds for London’s transport system (Santos & Bhakar, 2006).
However, critics argue that the congestion charges result in several economic implications and, therefore, it should be scrapped. One sentiment that has generated intriguing debate identifies that, “driving a car in London has become a necessity and, therefore, the demand will be inelastic that drivers will not alter their behavior.” There are some truth with this argument since most of people in London uses their cars as a transportation tool, others for pleasures while others uses their personal vehicles as part of their work. In this perspective, driving is a necessity since the trend shows that driving has become a part of life.
Other means of transportation to substitute driving are inaccessible to some individuals. Legally, driving is considered a privilege extended by the state. This right can be suspended, revoke or minimized for a number of reasons. However, in London, driving is an important part of life especially for those living in a huge metro area (phoenix) because there is no public transit within some miles of their houses (Prudhomme & Bocarejo, 2005). In retrospect, congestion charge could not influence their behavior. In other words, the introduction of such traffic measures will have minimal or no effects on the driving behaviors of London people since it is inevitable.
It, therefore, means the rate of attaining the main objective of the congestion charge is slow since individuals are not responding appropriately. Economically, the law of demand suggests that if the expenditure of acquiring a certain product or enjoying services increases, then consumers is likely to change their consumption behavior. To be precise, as the cost increases, the demand for such commodities decline ceteris paribus ...Download file to see next pagesRead More
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