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  • Home
  • About Us
    Our Vision
    BCP’s vision is that free-market municipal policy solutions are broadly available, widely acceptable, and regularly employed, enabling American cities to achieve their full potential as engines of economic prosperity. We reject the idea that cities are lost to free-market principles or policies.
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    BCP uncovers ideas that work, promotes realistic solutions, and forges partnerships that help people in America’s largest cities live free and happy lives.
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    Address

    304 S. Jones Blvd #2826
    Las Vegas NV 89107

    Phone

    (702) 608-2046‬

    Hours

    Monday through Friday, 8 a.m. - 5 p.m.

    Email

    info@better-cities.org

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Home Transportation and Infrastructure

Congestion pricing often wins over critics

Well run programs quickly demonstrate tangible results

Patrick TuoheybyPatrick Tuohey
August 8, 2024
in Energy and Environment, Transportation and Infrastructure
Reading Time: 2 mins read
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Congestion pricing often wins over critics
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Congestion pricing, a system where drivers pay to access busy urban areas, often faces fierce opposition at its inception. A promising program to be adopted in New York City was just placed on “indefinite pause” by Governor Kathy Hochul. This is a shame.

The idea of congestion pricing is straightforward and has been around for years. It requires car and truck drivers to pay a fee to enter areas where roads are congested. It may employ tolls or fees to enter certain areas, and including surge pricing when traffic is especially bad. Anyone who has logged on to a rideshare app has probably experienced surge pricing—and had to decide if the benefit of traveling at that moment is worth the additional cost.

A recent Next City article explores the resistance to the policy and concludes that it tends to dissipate once the benefits become evident. Critics initially argue that congestion pricing imposes an economic burden on low-income drivers, displaces traffic to surrounding neighborhoods and question the government’s ability to manage the system and revenue effectively. These arguments prove effective with the public, making policymakers hesitant to implement such initiatives.

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Yet, cities that have implemented congestion pricing, like London, Stockholm and Singapore, show a recurring pattern: initial resistance gives way to widespread acceptance and even support.

This transformation stems from the benefits that become apparent post-implementation. Reduced traffic congestion is the most immediate and visible effect. London’s congestion charge zone, introduced in 2003, led to a significant drop in traffic volumes and improved travel times for those who chose to pay the fee. Stockholm experienced similar outcomes, with traffic levels decreasing by 20% and congestion halving in the first year alone.

Environmental improvements also play a role. Reduced traffic translates to lower emissions, improving air quality and contributing to public health. Stockholm’s congestion pricing led to a 10-15% reduction in CO2 emissions, reinforcing the city’s environmental commitments.

The revenue generated from congestion pricing is often reinvested into public transportation and infrastructure improvements. This creates a virtuous cycle: better public transport options encourage more people to leave their cars at home, further reducing congestion and emissions. New York City’s congestion pricing plan halted by the governor was to fund the city’s public transit system, promising enhanced services and infrastructure upgrades.

Well-designed and transparently implemented congestion pricing can overcome initial skepticism by delivering clear and measurable benefits. It may start as a controversial policy, its proven ability to reduce traffic, improve environmental conditions, and generate funds for public transportation helps transform critics into advocates.

Tags: BudgetsPublic TransportationTransitUrban Transportation
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Patrick Tuohey

Patrick Tuohey

Patrick Tuohey is co-founder and policy director of the Better Cities Project. He works with taxpayers, media, and policymakers to foster understanding of the consequences — sometimes unintended — of policies such as economic development, taxation, education, and transportation. He also serves as a senior fellow at Missouri's Show-Me Institute and a visiting fellow at the Virginia-based Yorktown Foundation for Public Policy.

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