3.

Policy and Regulation:

• How can government policies be designed to encourage the use of
sustainable transport options?
• What are the economic implications of congestion pricing in major
cities?
1- How can government policies be designed to encourage the use of sustainable transport
options?

Rebuilding Public Transit and Enhancing Multimodal Transportation

Thriving cities rely on public transportation such as subways and buses because they are more
efficient, equitable, and less polluting. To increase ridership, it is essential to improve the speed
and reliability of service and make alternatives like private cars more expensive and less
attractive. The passenger experience can be improved by increasing the number of buses or
trains and adding more stops to reduce walking time to public transit. Multimodal hubs can also
be created to facilitate the transition between different modes of transportation. Authorities
should offer promotional fare packages to encourage more people to use public transit.
Additional Recommendations:

• Develop smart transportation systems that use data to improve scheduling and coordination
of transit services.

• Enhance public-private partnerships to provide innovative transportation solutions.

Full Electrification of Transportation

Using electric vehicles improves air quality and reduces emissions and noise. Cities must ensure
that electrical grids can meet the increasing demand and expand charging infrastructure.
Financial and non-financial incentives should be offered to encourage citizens to buy electric
vehicles, such as allowing them to use bus lanes and providing free parking and charging.
Additional Recommendations:

• Expand fast charging networks to reduce charging time and make electric vehicles more
attractive.

• Encourage the use of electric buses in public transit systems as an initial step towards full
electrification.

Promoting Walking and Cycling

Expanding walking and cycling requires building infrastructure such as car-free zones and bike
lanes. Bike and scooter-sharing services should be encouraged, and their use in public transit
should be facilitated. Cities like Paris can set an example by funding additional bike paths and
closing parts of downtown to cars. Additional Recommendations:

• Organize awareness campaigns to promote a healthy lifestyle and active transportation.

• Offer educational programs to teach residents how to use bicycles safely and effectively.

Building Infrastructure to Withstand Climate Change Effects

Construction projects must consider the increased risk of flooding due to climate change.
Business continuity plans for transportation systems should be in place to ensure quick recovery
after disasters. Keeping the electrical grid updated is crucial to meet the increased demand from
electric vehicles and prepare for sudden surges caused by extreme weather. Additional
Recommendations:
• Invest in sensor and early warning technologies to improve the city's response to severe
weather conditions.

• Enhance green infrastructure such as green roofs and rain gardens to reduce the impact of
flooding.

Investing in New Technologies to Reduce Emissions

This includes parking apps that reduce the need for driving around looking for spots and
charging apps that inform EV drivers about charging locations. Local companies working on fossil
fuel alternatives, such as hydrogen and battery technologies, should be encouraged to develop
their products in cities. Additional Recommendations:

• Strengthen partnerships with universities and research centers to develop new and
sustainable technologies.

• Provide incentives for companies that adopt clean transportation technologies and reduce
emissions in their daily operations.

These policies and recommendations aim to enhance sustainability and reduce the
environmental impact of cities in the future while improving the quality of life for their residents.
2- What are the economic implications of congestion pricing in
major cities?
What is congestion pricing?

Congestion pricing is a dynamic pricing strategy that aims to regulate demand by increasing
prices without increasing supply. This strategy is used in the transportation sector to reduce
congestion and air pollution by charging higher fees to enter congested areas in major cities. It is
also used in the hospitality and utility sectors where demand varies depending on time or
season.

Most important key points:

Congestion pricing imposes price increases for services that experience temporary or periodic
increases in demand.

It is used in transportation, tourism, hospitality and utility sectors.

Congestion pricing includes several types such as demand or surge pricing, segmented pricing,
and peak pricing.

It is based on the fact that consumers will consume free or cheap resources more than
expensive resources.

It can increase revenues but may involve high costs.

Understanding congestion pricing:

Also known as demand or value pricing, it adds additional fees for services with temporary or
periodic increases in demand.

It is used to reduce traffic and improve air quality.

The goal is to regulate excess demand by applying higher prices during periods of high demand.

Types of pricing depending on congestion:

Dynamic pricing, peak pricing, or surge pricing: Prices change based on changing conditions such
as increased demand at certain times.

Segmented pricing: Prices are set based on customers' willingness to pay more for certain
services.

Pricing for Peak Users: Based on peak times and used for transportation and utilities.

Theoretical background:

Congestion pricing is a demand-side solution to traffic regulation driven by market economics.

Increasing prices reduces resource usage during periods of high demand.

The effectiveness of this strategy in reducing congestion has been proven in urban areas that
have adopted it.

Advantages and disadvantages:

Advantages:

Congestion and usage control.

Increase revenue.

Reduce pollution and energy consumption.

Defects:

It burdens drivers and low-income people.

Business may be hurt in some areas due to reduced traffic.

Management and monitoring costs may be high

Reference : Congestion Pricing: Overview, Advantages and Disadvantages (investopedia.com)