If the French government were to raise the toll charged on its motorways, would the value of the

step 1 So first we need to understand according to a question. Question says that introduction to conge

If the French government were to raise the toll charged on...

Key Concepts

Monetary Value (Price-Based Measure)

This concept considers the value of road space as the monetary amount paid to use it, such as the toll revenue collected. When the toll is raised, the road space’s value measured in terms of price increases, since each unit of road consumed is now associated with a higher cost. This perspective treats value in a way analogous to market pricing of a scarce resource.

Use Value (Willingness-to-Pay or Marginal Utility)

This idea focuses on the intrinsic value derived from road space by its users, considering how much benefit or satisfaction ('utility') they obtain from every additional unit they consume. With a higher toll, fewer users—specifically those who value the road more—choose to use it, which may result in a higher average willingness-to-pay. Thus, while the toll (the monetary value) goes up, this measure of value reflects the underlying demand and the marginal benefit to the remaining users.

Transcript

00:01 So first we need to understand according to a question.

00:04 Question says that introduction to congestion charge for driving, for driving in central london traffic levels initially fell by 20 % right? so what is congestion charge? congestion charge if i write here.

00:17 So first we understand this.

00:19 What is congestion charge if i write this? congestion charge is a charge that is made made to.

00:31 To that is made a charge that is made to drive into an area which is typically congested.

00:44 A area typically city or a center that has high traffic or congestion, right? that has high traffic, high traffic and congestion.

01:01 Right.

01:02 And then what happens is in london, in london a congestion charge was introduced, charge was introduced to reduce the conjunction in traffic restricted area right? introduce, introduce in congestion charge zone.

01:25 Charge was introduced in congestion charge zone.

01:28 Congestion charged zone.

01:34 The goal is to keep drivers out of the zone during rush hour.

01:38 The goal is to keep the driver out of zone during rush hour, right? so basically to reduce traffic.

01:59 The funds raised are, so what are the benefits of that? funds the funds raised are used to improve public transport used to improve public transport like buses tubes so there is a when congestion charge one intrus more and more people are traveling to tubes so revenue using tubes and public transport were increasing right were increased and i talk about here such a renewal of london versus removal or older because that emit more pollutants right so pollution decreased pollution decreased because because of removal of older public transport right and what happened there traffic levels traffic levels in initially fell down by 20 % but this is very low rate right only initially then why it is failed by congestion charge policies failed so we can't say this totally failed it is still in the picture but even if it might it be still good idea it is still good idea right so congestion charge failed due to so some of the reasons some of the reasons if i write here reasons why reasons for the initially traffic levels were by 20 % over the next year the traffic levels revert to almost its original level right so some of the reasons for that for the traffic levels traffic levels reverted back reverted back almost to its original level almost almost to its original levels are almost to its original level are right so some of the reasons might be what while car numbers are down the number of private for higher vehicles or minicab so increase in number increase in number of private private vehicles like over ola right so basically what happened there different private vehicles enter the congestion charging roads each day with the peaks on friday and saturday nights right and second reason maybe so due to number of private vehicles number of number of increasement in tax taxi companies what happens is this has this has reduced the speed of the speed of traffic traffic through the city center but through the city center but it turns has affected the but it has affected public transport and bus network, right? worse network and public transport in terms of funding, in terms of money and fundraising, right? and third reason may be the fail of congestion charge would be taxis and mini caps.

06:15 Taxis and mini caps are extamed from the charge of are extant from from the charge.

06:25 The paying the congestion charge, congestion charge.

06:34 So revenue it affected? because if they are extant from that charge and more and more people are booking taxis and mini -cacks for public transport and entering in congestion area rather than using bus or tube networks.

06:48 So i can write finally is this is the income from congestion charge her flatline.

06:54 Thus, income from congestion charge flatline.

07:08 Right...

Please give Ace some feedback