Road pricing : barriers to successful implementation and influences on business responses : case studies of Singapore, the Netherlands and Southampton

Abstract

This thesis examines the controversial policy of road pricing, using a qualitative approach based on a series of case studies. Two related issues are explored; first the barriers to implementation, which help account for the lack of road pricing schemes to date, and second how businesses are likely to respond to a road pricing scheme. As the effects of road pricing are not fully understood, policy makers are often reluctant to implement schemes. This amplifies the problem that there are a lack of operational schemes to learn from, and in turn means the impacts of road pricing remain poorly understood. The first part of the analysis explores the institutional, attitudinal, practical and technological factors that influence the success and failure of road pricing policy, through case studies of Singapore and the Netherlands. In particular, the dominance of the automobile in society, and the history of policy controls on its ownership and use are shown to play a key role in affecting both the acceptance, and the ultimate success, of road pricing. A series of potential barriers to implementation are outlined, key . lessons are identified, and recommendations are made for future road pricing proposals, both in Southampton and beyond. The second part of this thesis moves on to consider the potential economic impacts of road pricing, focusing on how businesses in Southampton would respond to a hypothetical road pricing scheme. A wide range of ways that businesses could respond to road pricing are identified, which are categorised as locational, organisational, transport and financial. This thesis shows that a number of businesses in Southampton are locally embedded, both through territorial embeddedness, high sunk costs and ties to Southampton because of its unique characteristics as a deep water port and cruising centre. This embeddedness means many firms are less likely to relocate in response to road pricing than policy makers often fear. Firms' non-locational responses are affected by a number of factors, including their level of behavioural and cognitive `lock in' to their working and transport practices, and their willingness and ability to pass on any extra costs that they may incur if road pricing is introduced. Although Southampton is in many ways unique, this research has focused on understanding and explaining the reasons for particular responses, rather than simply identifying them; and as such the results can be applied to other cities considering implementing road pricing.

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