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This paper presents a study of the increasingly urgent problems of congestion and pollution caused by cars, particularly in central London; it views congestion as both an economic and an environmental problem. The paper discusses: (1) why cities require fewer cars; (2) how road pricing works; (3) road pricing issues; (4) public and political opinions about transport; (5) road pricing in relation to other policies. The author advocates the introduction of road pricing in central London as part of a comprehensive package of policies designed to reduce congestion and pollution, including: (1) other fiscal measures, such as the removal of tax subsidies for company car driving; (2) substantial improvements to public transport; (3) physical measures, such as the introduction of more extensive bus and cycle lanes; (4) in the longer term, a new approach to land use planning and urban communications. Properly used, road pricing would: (1) free road space for buses, delivery vehicles, essential services, cyclists and additional pedestrian areas; (2) substantially increase average traffic speeds for all vehicles, including car drivers who 'pay and stay'; (3) help to reduce pollution in city centres. Initially, road pricing should take the form of supplementary licensing, an additional payment for driving in central London during peak hours. By 1995, as the technology becomes available, electronic road pricing should be used, but only in a form involving 'smart card' technology in order to guarantee anonymity.
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