Analysis on Congestion in Cities and Road Pricing

Congestion brings a lot of negative effects. From economic analysis, we can see that congestion is mainly caused by the gap of private cost and social cost. Congestion pricing has been put forward by western scholars and put into practice successfully in Singapore. Many cities in China also face the problem of congestion, which has become the bottleneck of economic development. If government can establish reasonable criteria and region for road pricing, carry out necessary propaganda and hearing of witnesses and build up complete traffic information system, congestion pricing would be a countermeasure to solve the problem of road traffic.