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From fashionable studios to shared apartments, all the things is in a single place. The transport economics rationale for implementing congestion pricing on roads, described as "one policy response to the issue of congestion", was summarized in testimony to the United States Congress Joint Financial Committee in 2003: "congestion is taken into account to come up from the mispricing of an excellent; specifically, freeway capability at a particular place and time. The quantity equipped (measured in lane-miles) is less than the quantity demanded at what is actually a price of zero. If a good or service is supplied free of cost, folks are likely to demand extra of it-and use it extra wastefully-than they'd if they had to pay a worth that reflected its value. Therefore, congestion pricing is premised on a basic financial idea: cost a price with a view to allocate a scarce resource to its most valuable use, as evidenced by customers' willingness to pay for the useful resour + + +Congestion pricing is a concept from market economics concerning the usage of pricing mechanisms to cost the customers of public goods for the destructive externalities generated by the peak demand in excess of accessible supply. There's a consensus amongst economists that congestion pricing in crowded transportation networks, and subsequent use of the proceeds to lower different taxes, makes residents on common better off. Normally this implies rising costs during sure durations of time or at the places the place congestion occurs; or introducing a new utilization tax or cost when peak demand exceeds available provide within the case of a tax-funded public good supplied free at the point of utilization. Congestion is considered a damaging externality by economists. 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