Congestion charges could work in New Zealand, if lessons are learnt from mistakes made overseas.

New research by business think tank the New Zealand Initiative has proposed charging drivers for using crowded routes at peak times.

It's recommending cost-neutral congestion charges, replacing local rates and fuel taxes.

Researcher Patrick Carvalho told Mike Hosking congestion charges haven't worked in cities where they aren't cost-neutral.

"Some motorists will pay a lot more, but most motorists will pay less."

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