This paper examines the feasibility of implementing a congestion tax for the city of Chennai in the State of Tamil Nadu. Based on secondary data, it calculates the time cost, fuel cost and cost of emissions due to congestion and makes recommendations regarding the effective design and application of such a tax.

The purpose of this study by Centre for Development Finance is to develop financing strategies that would assist the Central and State Governments in implementing the State Action Plans on Climate Change (SAPCC) in an effective and efficient manner.

The objectives of this study are to incorporate the natural resources into the State accounts of Tamil Nadu.