This paper exploits the implementation of the London Congestion Charge (LCC) to provide credible estimates on the willingness to pay to avoid traffic using the housing market. This policy curtails road traffic by imposing a fee on anyone driving into the charge zone. My results show that the LCC is associated with significant improvement in traffic conditions and housing values. Instrumenting local traffic conditions with the enforcement of the LCC, and limiting the analysis to properties proximate to the charge boundary, I find that the elasticity of housing values with respect to traffic is -0.30. These findings suggest that the consequential improvement in traffic conditions due to the LCC has generated substantial windfall of more than £3.8 billion for homeowners in the zone.

本文利用伦敦交通拥堵收费（LCC）的实施方法，对避免住房市场交通的支付意愿提供可靠的估计。该政策通过对驶入收费区的任何人收取费用来减少道路交通。我的结果表明，低成本航母与交通条件和住房价值的显着改善有关。通过执行LCC来检测当地的交通状况，并将分析限制在接近收费边界的属性上，我发现房屋价值相对于交通的弹性为-0.30。这些发现表明，LCC带来的交通条件的改善为该地区的房主带来了超过38亿英镑的巨额收入。