The Mayor of London claimed that the London Congestion Charge has caused a change in travel habits in favour of public transport. What evidence is there to support this claim and what consequences might follow from it? Why do you think London businesses claim to be broadly supportive of the scheme? How might the current London Congestion Charge be modified if it is to move more closely towards a Pigouvian tax which charges individual drivers according to the negative externalities they themselves impose?
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