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An investigation into the possible effects of a Congestion Charge within Glasgow City Centre with particular regard to the property markets.

Urban growth over centuries has been built on the premise that transportation costs for goods, for people and for ideas can be minimized. A corollary of this has traditionally been a public transport system which has transported the working population to the Central Business District, the heart of a City.

Economics Essay

A lack of investment in public services combined with increased car affordability has, however, resulted in a boom in car ownership. The growth in car ownership has had a dramatic impact on urban centres worldwide. In Scotland, specifically Glasgow and Edinburgh, measures are considered necessary to control the increasing numbers of cars on the road. The main consequence of this trend has been congestion and declining air quality.

The logical conclusion from the fact that a transport network was established prior to the establishment of the automobile as the primary mode of transport is that the infrastructure is somewhat limited. Where both the transport infrastructure is lacking and causing environmental hazards, action is usually considered a necessity. At a global scale, sustainable development is receiving much deserved attention, particularly with regards the state of the environment. The unsustainable rate of natural resource exploitation has led to a growing appreciation of the need to change current approaches. In response to increasing concerns about climate change, the United Nations Framework Convention on Climate Change was agreed at the Earth Summit in Rio de Janeiro in 1992. Under the Convention, all developed countries agreed to an aim to return their greenhouse gas emissions to 1990 levels by 2000. The UK is one of a small number of OECD countries who have met this target.

In moving towards a more sustainable, lower carbon economy, the value of an integrated transport network with fewer car journeys is deemed extremely high. A study conducted in 2000 by DEFRA, for Glasgow City Council, showed that an enormous 90% of Nitrogen Dioxide emissions for that year alone came from road traffic. The need to reduce traffic on Glasgow’s roads is therefore deemed a priority in order to meet international environmental legislation and create a more sustainable society.

The question thus presenting itself is how can Glasgow achieve a sustainable, lower carbon economy – i.e. ease the congestion problem and improve air quality without affecting the local economy? The pollution levels from vehicles in Glasgow are so high that in certain areas the air quality is severely affecting the health of the people exposed. Consequently, there is a real need for implementation of a policy measure aimed at reducing congestion within the city centre. This study provides an in-depth analysis of congestion charging in other towns and cities and concludes that congestion charging is recommended and that, additionally, consequences for the property sector are likely to be insignificant as a result of proximity to the motorway network is more significant than proximity to the central business district, in terms of urban rent.

Urban growth over centuries has been built on the premise that transportation costs for goods, for people and for ideas can be minimized. A corollary of this has traditionally been a public transport system which has transported the working population to the Central Business District, the heart of a City. A lack of investment in public services combined with increased car affordability has, however, resulted in a boom in car ownership. The growth in car ownership has had a dramatic impact on urban centres worldwide. In Scotland, specifically Glasgow and Edinburgh, measures are considered necessary to control the increasing numbers of cars on the road. The main consequence of this trend has been congestion and declining air quality.

The logical conclusion from the fact that a transport network was established prior to the establishment of the automobile as the primary mode of transport is that the infrastructure is somewhat limited. Where both the transport infrastructure is lacking and causing environmental hazards, action is usually considered a necessity. At a global scale, sustainable development is receiving much deserved attention, particularly with regards the state of the environment. The unsustainable rate of natural resource exploitation has led to a growing appreciation of the need to change current approaches. In response to increasing concerns about climate change, the United Nations Framework Convention on Climate Change was agreed at the Earth Summit in Rio de Janeiro in 1992. 188 countries have now signed it. Under the Convention, all developed countries agreed to an aim to return their greenhouse gas emissions to 1990 levels by 2000. The UK is one of a small number of OECD countries who have met this target. The most up to date data on the UK’s emissions shows that carbon dioxide emissions fell by 8.7 percent between 1990 and 2002 and total greenhouse gas emissions fell by 15.3 per cent over the same period.

It was quickly recognised, however, that the Convention commitments could only be a first step in the international response to climate change. Climate prediction models show that deeper cuts in emissions will be needed to prevent serious interference with the climate. The Kyoto Protocol, agreed in December 1997, was designed to address this issue. Developed (Annex 1) countries agreed to targets that will reduce their overall emissions of a basket of six greenhouse gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride) by 5.2% below 1990 levels over the period 2008-2012. The Kyoto Protocol is the first treaty of its kind to impose legally binding targets on countries, and differentiates between different Parties to the Convention. Only annex 1 countries have legally binding emissions reduction targets under the Kyoto Protocol. For example, the European Union and its member states agreed to a reduction of emissions from 1990 levels of -8%, the United States to -7%, Japan to -6%, Russia and the Ukraine to return to 1990 levels, and Australia was allowed an 8% increase.

Under the Kyoto Protocol, the European Union and its Member States have agreed to meet their commitments jointly. This ‘bubble’ arrangement allows the EU’s target to be redistributed between member states to reflect their national circumstances, requirements for economic growth, and the scope for further emission reductions. In June 1998, under the UK Presidency of the EU, environment ministers agreed how the target should be shared out. The UK agreed to reduce its emissions by 12.5%, which is its legally binding target under the Kyoto Protocol. Targets for other member states ranged from -21% for Germany and Denmark, to -6% for the Netherlands, +13% for Ireland and +27% for Portugal. Most developed countries believe that the targets they agreed at Kyoto are demanding. In many cases, their emissions are forecast to be significantly higher than 1990 levels in 2010.

In the Draft UK Climate Change Programme, the Committee noted that, “Climate change is perceived by Governments as a serious threat” (para 1), and that “we recognise that the subject of climate change is a controversial one, both scientifically and politically. The Committee took no evidence as to whether or not climate change exists, nor – if it does – to what it is attributable. Some witnesses told us of their doubts about the existence or likely scale of climate change and we acknowledge the problems posed by such an issue, where science has not yet provided definitive answers to some critical questions. This study starts from the presumption that climate change may be occurring, and that it may be partially at least attributable to emissions resulting from human activity.” (para 4).

Whilst the UK Government retains overall responsibility for the Kyoto Protocol target, the devolved regions control the means by which emissions can be reduced. In moving towards a more sustainable, lower carbon economy, the value of an integrated transport network with fewer car journeys is deemed extremely high. A study conducted in 2000 by DEFRA, for Glasgow City Council, showed that an enormous 90% of Nitrogen Dioxide emissions for that year alone came from road traffic. The need to reduce traffic on Glasgow’s roads is therefore deemed a priority in order to meet international environmental legislation and create a more sustainable society.

The question thus presenting itself is how can Glasgow achieve a sustainable, lower carbon economy – i.e. ease the congestion problem and improve air quality without affecting the local economy? One measure currently being considered for Edinburgh and already established in London and elsewhere has been the implementation of congestion charges. These policy interventions are aimed at challenging the economics of “convenient” car journeys into key locales, forcing people to choose alternative transport arrangements, especially for those whose journeys are non-urgent. The following report will investigate the impacts of implementing congestion charging in Glasgow by analysing the experiences of previous projects and by using data generated from previous feasibility studies.

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