Presentation of the OECD Incentives to reduce traffic congestion in Israel report

ASSESSING INCENTIVES TO REDUCE CONGESTION IN ISRAEL Overview and key messages

Road Pricing in Israel Event – Future Mobility IL & EY Tel Aviv, 1 December 2019

DIAGNOSTIC

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Traffic congestion in Israel is severe Road traffic density per network length (2014 or latest available)

Source: OECD (2015), Environment at a Glance 2015, OECD Publishing.

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Congestion will worsen unless action is taken Population density per square kilometre

Source: OECD (2018), OECD Economic Survey: Israel 2018, OECD Publishing.

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Israel is investing in public transport but most trips are still by car Annual average km per vehicle (2014 or latest available)

Source: OECD (2015), Environment at a Glance 2015, OECD Publishing.

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Some of the car trips in the peak could be reprogrammed Distribution of motorised trips by travel distance in Tel Aviv

Source: Preliminary analysis from Tel Aviv Travel Habit Survey (TTHS), Ministry of Transport and Ayalon Highways, 2017

Congestion charges can be part of the solution •A well-designed charging system can relieve congestion immediately and in the longer term with enhanced public transport •Revenues from congestion charges can facilitate additional investment in better public transport •Charges should be accompanied by measures to facilitate alternatives to cars •Engagement with the public and the business community can facilitate acceptance and ensure that equity concerns are addressed

OECD assessment of incentives to reduce congestion in Israel Objective Assess a plan prepared by an Inter-Ministerial Technical Committee to introduce congestion charges.

OECD Role Review Israel congestion status

Provide feedback and expert advice

Estimate economic and distributional impacts

Present international approaches

Lay out policy options

OECD expert team: Centre for Tax Policy and Administration, Economics Department, Environment Directorate, International Transport Forum, Public Governance Directorate

IMPACT OF CONGESTION CHARGES

How does congestion charging work • A charge to enter the city centre at peak times • Or a charge to drive anywhere that is higher in congested areas and at congested times • Persuades some drivers that have options to: • Change departure time • Walk or cycle for short trips • Use rail, tram or bus • Cancel trips (maybe teleconference), or make 1 trip instead of 3

Small changes make a big difference As the volume of traffic exceeds the optimum, speed and flow collapse

A small reduction in number of cars restores speed and flow

Source: Ian Wallis Associates, The costs of congestion reappraised, New Zealand Transport Agency, 2013

Real data from Auckland southern Motorway

Source: Ian Wallis Associates, The costs of congestion reappraised, New Zealand Transport Agency, 2013

Reduction in delays achieved by London Congestion Charge Delays cut 30% Traffic cut 18% Excess bus waiting time from irregular service cut 30% Bus disruption due to traffic delays cut 60% Bus speeds up 6 percent

Minutes per km delay compared to nighttime free flow

Source: Congestion Charging Central London Monitoring Report, TfL, Mayor of London, 2004

POLICY CONSIDERATIONS & OPTIONS

How to charge • Cordon - “charging by clicks” • km charge - “charging by usage” • Either would relieve congestion • Cameras alone, with ANPR, sufficient for cordon pricing • GPS tracking would give added flexibility Traffic flows Tel Aviv

Different charging methods work Singapore – cordon and corridor system, migrating to GPS

Stockholm – cordon charge Delays cut 30% in city centre Delays cut 30% on arterials in morning 50% on arterials in afternoon Traffic crossing cordon fell 22%

Prices vary to maintain design speeds: 20-30 km/h on city roads 45-65 km/h on expressways

Technology, intrusion, data protection • Cameras for cordon and area pricing in London • Impact on urban landscape minimal • Data protection measures identical for any system • See Transport for London website for privacy and data protection policy

Not the only privacy issue

Accompanying measures • • • • •

Better bus services Improve the cycling environment Facilitate carpooling Higher parking prices Remove income tax deductions for car use

Use of revenues • Using revenue for additional investment in public transport usually part of the package for successful introduction of congestion charging

Engagement with the public • Clarity on objectives of the charging scheme • Communicate on scale of the problem • Engage with business, citizens and press on possible solutions

Source: Goodwin 2016, The gestation process for road pricing schemes, Local Transport Today.

Key Messages (I) 1

Estimated Impact of Congestion Charges

Estimating that if 5% of drivers change their practices, there could be significant improvements in travel time in the short run.

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How to charge

Estimating distributional impacts of two considered methods: 1. Charges by “clicks” 2. Charges by usage  Both systems can to lead to sizeable reductions in congestion  Assess distributional impacts so that complementary targeted measures can be taken  Regardless of the chosen scheme, a GPS-based monitoring technology should be considered to allow for long-term flexibility  Congestion charge processing must conform with data protection legislation

Key Messages (II) 3

Possible Accompanying Measures

    

Near-term improvements in the quality of bus services Facilitate uptake of carpooling potential Improvements in the environment for cycling Higher parking prices Remove income tax deductions that encourage car use

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Use of revenues from congestion charges

 Fund additional investment in better public transport 5

How to engage with the public

 Support public acceptance through clarity on objectives of the charging scheme  Use information campaigns to support buy-in from business, citizens and press

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Thank you!