Congestion Pricing for Indian Cities

Abstract

Congestion pricing has demonstrated significant effectiveness in managing traffic congestion in cities around the world. While numerous cities globally have implemented or explored various congestion pricing schemes, their potential remains largely untapped in Indian cities. This paper investigates the feasibility of congestion pricing as a tool to address traffic issues in India, focusing specifically on the city of Ahmedabad. By analyzing both successful and unsuccessful international cases, the study extracts critical lessons that can inform potential implementations in the Indian context. Through a theoretical assessment, this study identifies three distinct spatial characteristics in Indian urban environments that could facilitate effective congestion pricing: (1) well-defined charging zones, (2) advantageous geographical features, and (3) compact, densely built central business districts. These features, prevalent in Indian cities, could play a vital role in achieving successful outcomes similar to those observed internationally. In addition to spatial considerations, the paper addresses the unique challenges Indian policymakers may encounter, such as garnering public support, ensuring political feasibility, and developing the necessary technical infrastructure. To assist policymakers in overcoming these challenges, the study provides practical recommendations rooted in international best practices. Overall, the research extends the discussions on congestion pricing in the Indian context, resulting in the identification of valuable insights to guide decision-making for the implementation of congestion pricing schemes, ultimately promoting sustainable urban mobility and addressing traffic congestion issues in Indian cities.