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livemint.com / 2 months ago
livemint.com / 3 months ago
Mint Explainer | Why Niti Aayog recommends congestion pricing to discourage excess usage of private vehicles
Subscribe to enjoy similar stories. NEW DELHI: A Niti Aayog study on decarbonizing India's transport sector published earlier this week called for congestion pricing to disincentivize private vehicle ownership. Congestion pricing is a strategy to charge vehicle drivers a fee to enter high-traffic urban areas during peak hours.
Developed economies including Singapore, the US and the UK have implemented this method of urban tolling to reduce traffic jams. Mint explains the rationale behind this move in the backdrop of private vehicles accounting for more than half of India's road-based passenger movement.
What did the Niti Aayog study say?
The study examined the current state of India’s transport – road, rail and water-based transport – along with existing policies aimed at decarbonisation. Based on this, it mapped what the sector would look like in 2050 and 2070 in a business-as-usual scenario and in a scenario where India works aggressively to reduce greenhouse gas emissions (net zero scenario).
It said private vehicles accounted for 53% of India’s road-based movement in 2025 and public transport made up 47%. Based on the modelling, the share of public vehicles could rise to 50% in a business-as-usual scenario, and even 60% in a net-zero scenario where the country adopts stronger policies to reduce greenhouse gas emissions.
It suggested that India disincentivizes excess usage of personal vehicles by implementing congestion pricing, high parking fees, and ownership taxes in urban centres. Congestion pricing is akin to urban tolling.
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