Random Thoughts of Chris Tilley

First of all what is congestion pricing? Basically it is charging a toll for access into a highly congested area. In the case of New York it will mean a charge for going south of 60th St in Manhattan.

What are the expect benefits?

• Save 13 Billion a year in Fuel, extra time spent in traffic and Revenue
• Less Traffic
• Help Global Warming
• Improve Mass Transit (as long as the money is funneled that way)

This is another Environmental Defense orchestrated effort. I am a real fan of their work. They work things out so that the economics of the situation work to solve the problem. In this case adding to the congestion and pollution will cost you, you can still do it but at a cost. The money will go to mass transit improvement and that is the key point. If it just goes to government general funds nothing will change.

This has been implement successfully in a number of cities. The best example would be London . London started it 2003 and and have seen the following successes

• 30% average drop in congestion
• 37% average increase in traffic speed
• # 12% drop in particulate matter and nitrogen oxides
• 20% decrease in fossil fuel consumption and CO2 emissions

In Stockholm they initiated a trial program with only 31 percent of residents favoring it. After the trial they held a referendum to reinstate the charges and it passed.

There are a number of other cities that could implement this and will probably pay a lot more attention when New York starts showing some benefits. This still has to get passed the city and the state.