Why do traffic jams happen in the first place? Why don’t we simply build more roads? And should drivers really have to pay for using them?

In this episode, we talk about congestion pricing with Erik Verhoef, professor at the Vrije Universiteit Amsterdam and research fellow at the Tinbergen Institute. His research focuses on how economic instruments can help address the negative externalities of transport, with a particular focus on road congestion.

We discuss why economists have long seen congestion pricing as an effective solution to traffic, why expanding road capacity alone often fails to solve the problem, and how congestion depends on where and when people travel. From electronic road pricing in ingapore to congestion charging in London and Stockholm, we explore how different systems work in practice and what policymakers can learn from them.

Finally, we look at the politics of congestion pricing, why public opposition often declines after implementation, how revenues can shape perceptions of fairness, and why solving congestion may require changing the behavior of only a small share of travelers.

More about our guest:

https://research.vu.nl/en/persons/erik-verhoef/

Music recommendation of the episode:

https://open.spotify.com/intl-de/track/06ypiqmILMdVeaiErMFA91