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Breaking down the Low Emission Zone income The model used
Page 21
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here is by no means exact, and assumes the market remains at its current high level, but it does give a hint of how much revenue could be generated by the LEZ.
• There are 420,000 vehicles in the UK truck parc and this figure remains pretty static.
• More than 50,000 new vehicles are made every year and this figure also remains static.
• Since 2001 (when Euro-3 came into effect on new trucks) 200.000 vehicles have come onto the market at Euro-3 standard. So by 2008 it is estimated that 70,000 commercial vehicles will still fail to comply with the Euro-3 standard.
• According to the FTA, 40% of the vehicle parc enters London each year. which equates to about 28,000 trucks. If they each paid a £200 fee it would generate £5,6m.
• Between 2006 (when Euro-4 begins) and 2010, 200,000 vehicles will be Euro-4 compliant.
• This leaves 220,000 commercial vehicles that will fail to meet Euro-4, indicating that 88,000 non-compliant trucks will be entering London.
• At £200 a time that comes to £17.6m