London's Congestion Charge

Kellogg School of Management Cases

ISSN: 2474-6568

Publication date: 20 January 2017

Abstract

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.

Keywords

Citation

Besanko, D., Horner, J. and Kalletta, E. (2017), "London's Congestion Charge", Kellogg School of Management Cases. https://doi.org/10.1108/case.kellogg.2016.000184

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Kellogg School of Management

Copyright © 2006, The Kellogg School of Management at Northwestern University

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