The Brits do it in London, the Swedes in Stockholm and the Italians in Milan and we Americans are about to start doing it right here in New York City. I am referring to congestion pricing, and starting next spring, folks will have to pay an additional fee or toll to drive in the traffic-choked section of Manhattan below 60th Street. It would be the first of its kind in the United States and the Metropolitan Transportation Authority (MTA) still needs to finalize toll rates but proposals have ranged from $9 to $23 per vehicle every time they enter the congestion zone depending on the time of day. The idea is not new; in fact, efforts for congestion pricing in NYC date back more than half a century but car and truck owners in the outer boroughs and the suburbs (and local legislators from these neighborhoods) have helped defeat past proposals. And the benefits are hard to dispute: reduced accidents, lower carbon emissions and a decline in noise pollution (all things economists refer to as negative externalities). In addition, public transport would likely improve from the revenue generated from congestion fees (think newer subway cars and electric signals designed to improve accessibility and speeds) and, with more reliable public transport, office occupancy should benefit along with surrounding retail stores.
London recently “celebrated” the twentieth anniversary of its congestion pricing and the numbers are in. One year after implementing the fee, London traffic congestion dropped 30% and average driver speeds increased by the same percentage. In Stockholm, children’s asthma visits to the doctor fell by 50% compared to before the launch of congestion pricing in that city. Sounds like nothing but peaches and cream so what’s the problem? Paying for something that was previously free is tough medicine for folks to take and New Jersey legislators wasted little time responding: they passed the “Stay in Jersey” bill to help employees work from their NJ homes and Governor Murphy himself got in on the action, launching a recent billboard campaign with the slogan: “Pay congestion tax to sit in NYC traffic? Get outta here.” Cute for sure, but ultimately NYC holds the power of the pen on this one and NJ residents who must come to NYC for work will be forced to figure it out. Heck, they may even start taking the bus into the city or some other mode of public transport.
Opponents of congestion pricing also argue lower income groups will be disproportionately impacted. Taxi and ride-share drivers fear demand will be curtailed along with their income making it tougher to make ends meet. Many low-income drivers complain that driving is their only viable option to access downtown Manhattan. Furthermore, parts of NYC like the Bronx may see increased traffic diverted to their neighborhoods. The MTA and other agencies haven’t overlooked these concerns and are planning discounts to certain drivers in low income brackets and truckers who enter the congestion zone during overnight hours, as well as investments to improve air quality and the environment in areas where traffic could be diverted. The former New York City traffic commissioner, Sam Schwartz, aptly remarked that “100 years ago we decided the automobile was the way to go” but the future of NYC belongs to “the pedestrian” and I couldn’t agree more but then again, I don’t drive in lower Manhattan so there’s that.
Mckinley, Jesse. “What’s behind the Widening Divide between New York City and Its Suburbs?” The New York Times, 18 June 2023, www.nytimes.com/2023/06/18/nyregion/suburbs-new-york-city-tension.html. Meyersohn, Nathaniel. “New York City Will Charge Drivers Going Downtown. Other Cities May Be next | CNN Business.” CNN, 12 June 2023, www.cnn.com/2023/06/10/business/congestion-pricing-new-york-city-transportation/index.html.
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