Impact of Congestion Charge on Retail: London Experience

Abstract

The effect of London's congestion charge on the retail sector has aroused considerable interest since the introduction of the scheme in February 2003. We investigate the impact of the congestion charge using a variety of econometric models applied to a total retail sales index for central London (monthly) and weekly retail sales data for the John Lewis Oxford Street store within the congestion charging zone. The analysis suggests that the charge had a significant impact on sales at the John Lewis Oxford Street store over the period studied. However, it also suggests the charge did not affect overall retail sales in central London, an area larger than but encompassing the congestion charging zone.