Congestion pricing or
congestion charges is a system of surcharging users of
public goods that are subject to congestion through excess demand such as higher peak charges for use of
bus services,
electricity,
metros,
railways,
telephones, and
road pricing to reduce
traffic congestion;
airlines and
shipping companies may be charged higher fees for slots at
airports and through
canals at busy times. This
pricing strategy regulates demand, making it possible to manage congestion without increasing
supply.
Market economics theory, which encompasses the congestion pricing concept, postulates that users will be forced to pay for the
negative externalities they create, making them conscious of the costs they impose upon each other when consuming during the peak demand, and more aware of their impact on the
environment.