Why direct road pricing is inevitable

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Earlier this week, the Grattan Institute issued a media released explaining its proposal for a cordon-style congestion charge across both Sydney and Melbourne, which would be followed by direct user pricing five years after implementation:

Drivers should be charged $5 to enter the Sydney and Melbourne CBDs in the morning peak and another $5 to exit in the afternoon peak… the scheme would reduce the number of cars entering the CBDs each morning by about 40 per cent.

It recommends that the money raised be spent on upgrading CBD streets to make them safer and less congested for pedestrians…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.