London's Congestion Charge

Kellogg School of Management Cases

ISSN: 2474-6568

Publication date: 20 January 2017


To provide a good illustration of how an unregulated market with negative externalities can lead to an overprovision of a good (in this case driving). Also, to show how an externality tax (in this case, London's congestion charge) can lead to an improvement in social welfare.



Besanko, D., Horner, J. and Kalletta, E. (2017), "London's Congestion Charge", Kellogg School of Management Cases.

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