In the European Union, losses caused by traffic jams are about 1 percent of the GDP on average (according to data from the European Commission). Since this is an average, this value is probably higher in the cities, but let us assume that in Budapest the rate is only 1 percent. Our capital produces 40 percent of the country's GDP. In 2015 Hungary’s GDP was about 34 000 billion Hungarian Forints, the 40 percent of this is 13 600 billion and the 1 percent of this number is 130 billion HUF.

A well-established congestion charge could eliminate the majority of the traffic jams, hence we would be able to save about 100 billion HUF yearly.

According to the World Health Organization the health damage caused by air pollution is 19 percent of the GDP in Hungary, that is around 6500 billion HUF per year.

If we take this proportionately for the population of Budapest, we get 1300 billion HUF. Introducing the congestion charge would result in improved air quality, and if we assume that the harm caused by air pollution decreases by 10 percent, we would be able to avoid a loss of 130 billion HUF.

On the other hand, the congestion charge is not a loss for the city because the 20-30 billion HUF in proceeds per year will be used to benefit the public. (This is obviously going to happen since this is how social acceptance for congestion charge can be achieved.)

To sum up, a well-established congestion charge would save at least 200 billion HUF (120 000 HUF per person) in Budapest each year.

Translated by Evelin Kiss