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Singapore was the first country to introduce congestion pricing on its urban roads in 1975, and was refined in 1998. Since then, it has been applied in cities together with London, Durham, England, Stockholm, Gothenburg, Milan, and New York Metropolis. By setting a value on an over-consumed product, congestion pricing encourages the redistribution of the demand in area or in time, leading to extra environment friendly outcomes. This pricing technique regulates demand, making it possible to manage congestion with out growing provide. It additionally has been extensively studied and advocated by mainstream transport economists for ports, waterways, airports and road pricing, although actual implementation is fairly limited as a result of controversial issues subject to debate concerning this coverage, significantly for urban roads, equivalent to undesirable distribution effects, the disposition of the revenues raised, and the social and political acceptability of the congestion charge. According to the economic principle behind congestion pricing, the target of this policy is to make use of the price mechanism to cowl the social price of an activity the place customers in any other case do not pay for the adverse externalities they create (comparable to driving in a congested area throughout peak demand). Congestion pricing is one in all a number of alternative demand facet (as opposed to supply side) strategies provided by economists to deal with traffic congest