Congestion pricing is a type of demand-based pricing used to manage traffic congestion. The price of using a congested road or other scarce resource is typically higher during periods of peak demand, and lower during off-peak times.

This pricing strategy is designed to encourage people to use alternative routes, modes of transportation, or to travel at different times in order to reduce congestion. In some cases, the revenue generated from congestion pricing can be used to fund public transit or other infrastructure improvements.

Congestion pricing has been implemented in a variety of ways, including electronic tolls, variable taxes based on time of day or vehicle type, and even fines for driving in certain areas during peak times. While it can be an effective tool for managing traffic, it is not without its critics. Some argue that congestion pricing unfairly penalizes people who have no alternative but to use the congested road or resource. Others contend that the revenue generated from congestion pricing should be used to improve public transportation options, rather than simply going into general government coffers.

Whether you love it or hate it, congestion pricing is likely here to stay as cities around the world look for ways to manage growing traffic problems.