Congestion Pricing

Congestion Pricing is supposed to encourage users who can be flexible in their usage times to shift their use away from peak periods to times when use is less expensive. It is not limited to transportation; it can be used with any service that faces varying levels of demand by time of day, such as electricity. It s a way of harnessing the power of the market to reduce the waste associated with traffic congestion. Congestion Pricing is a concept from market economics regarding the use of pricing mechanisms to charge the users of public goods for the negative externalities generated by the peak demand in excess of available supply.