Bloomberg’s Folly?Congestion Pricing in New YorkEmma O’Brien, Nick Zoller, Peter DahlbergOutline What is congestion pricing? Benefits and costs of congestion pricing Present New York traffic situation PlaNYC 2030 Case Studies- Singapore and London Conclusions Discussion questionsWhat is congestion pricing? A market-based trafficmanagement strategy Charges drivers for the useof roads A method of both managingtraffic congestion andgenerating revenueWhy is Congestion a Problem It wastes time, and time is money It wastes fuel Environmental consequencesCosts of Congestion(NYC Department of Transportation, PlaNYC 2007)How Congestion PricingManages Congestion Charges for use ofcongested areas duringtimes of peak use providesan incentive for people whodo not need to be on theroad to postpone trips tonon-peak hours or shiftmodes These trips would be moreefficient during off-peakhoursTypes of Congestion Pricing Cordon PricingLondonCongestion Pricing in theU.S.? FHWA funds available under SAFETEA-LUfor implementing congestion pricing Urban Partnership Agreements – U.S.Department of Transportation Public-Private Partnership (PPP)Benefits Reduction of peak-period and total roadwaycongestion Better mass transit Reduction of greenhouse gas emissions andenergy consumption Increased traffic safety?(Transportation Alternatives)Costs Inconvenience to motorists Privacy issuesIs There a Traffic Problem inNew York City?Is There a Traffic Problem inNew York City?(NYC Department of Transportation, PlaNYC 2007)Is There a Traffic Problem inNew York City?YES!• 50 hours lost to congestion in 2003• 87% of NYC voters agree that trafficcongestion is a “serious/somewhat seriousproblem” (Schuster 2007)PlaNYC 2030 A comprehensivesustainability plan forthe city’s future Includes a pilotcongestion pricingprogram for managingtraffic in Manhattan’sCentral BusinessDistrictJames Estrin/The New YorkTimesNew York MayorMichael Bloombergunveiling PlaNYC 2030Pilot Congestion PricingProgram Aims to reduce the amount of congestion duringpeak hours in Manhattan Charges a flat fee of $8 for cars and $21 for trucksto enter and drive around in Manhattan Buses, taxis, for-hire vehicles, vehicles withhandicapped license plates, and emergencyvehicles exempt Estimated cost of $223 millionNYC Congestion Pricing ZoneFee Collection There wouldbe no tollgates orwaiting areas Existing EZ-Pass Systemwould beusedFee Collection andEnforcement Cars without transponders can pay their tollswithin a 48 hour window of accessing thezone either online or at area merchants The license plates of all vehicles arerecorded by cameras and violators areissued citations by mailHow it WorksProjected Impacts of PlaNYC Decrease vehicular traffic within the zone by 6.3%and increase speeds by 7.2% Increase productivity for businesses A modal shift of 94,000 from cars to transit Only 1.4% of travelers from outside the zone willdiscontinue traveling to the zone $400 Million in net revenue in the first yearImplementation NYC has not dedicated funding for theproject yet It is eligible for $354 million of U.S. DOTUrban Partnership Agreement funds $10 million of this will be immediatelyavailable once the program is written into lawby the State LegislatureImplementation The State Legislature created a CongestionMitigation Committee to study the pilot program inAugust 2007. The Committee will issue its report on January 31,2008. The State Legislature and City Council are requiredto vote on enabling legislation by March 31, 2008. The city’s goal is to have the program operating bySpring 2009.Case StudiesCongestion pricingschemes have beensuccessfullyimplemented in:-Singapore, 1975-London, 2002-Stockholm, 2005Singapore 100% urbanized city-state Island geography Increasing private vehicleownership Densely populatedSingapore Timeline1975: AreaLicensing Scheme1991: WeekendCar Scheme1994: Off Peak CarScheme1998: ElectronicRoad PricingInitial Problems Drivers who would have driven duringrestricted times now drove before or after toavoid fee Drivers who would have driven throughRestricted Zone took other routes to avoidfee Drivers who avoided Restricted Zone in themorning drove through it in evening whenthere was no feeNew Tactics Employed Increasing length of restricted time All-day restricted time began in 1994 Shoulder Pricing system: increased feeduring rush hour Switch from manual toll booths to electronicfee collectionResults Initially, traffic in Restricted Zone decreased45%, creating underutilization of roads (Toh) Transit share increased from 33% beforeALS to 69% (Toh) Peak hour traffic reduced by 13% (Munnich) Road speeds increased by 20% (Munnich)London•7.5 million people•Worst traffic congestion in UK•Londoners spent 50% of time in traffic queues•Congestion cost London £2-4 million ($4-8million) per week (Transport for London)•Environment and social effects of congestion•Good transport network in place•Automobile traffic 12% share of total tripsLondon Congestion Charging Scheme 2003, Mayor Livingstone Designates CongestionCharging Zone 7 a.m.-6 p.m., Mon-Fri £8 ($16.50) charge Electronic reading system Profits fund transportinitiativesCongestion Charging Zone(www.bbc.co.uk)How it Works Congestion Charging Zone clearly marked Photograph of license plate matched tovehicle registration Account billed Payment made online,by text, at paymentstation, participatingshops, or prepaid onaccount by midnightVisible ResultsOther Results Share of automobiles decreased to 10% (Litman) Modal shift to transport Traffic delays down 22% (Munnich) Traffic speeds up 37% (Munnich) Emissions reduced by 13-15% (Munnich) Fuel consumption down 20% (Munnich) 15% increase in bus ridership (Litman)Community Support Public opinion mixed Business community mostly supports Congestion charge offset by reduced traveltime and fuel costs Political favor across party linesWinners Downtown bus riders All transport riders (due to increased funding) Taxi users Motorists with high-value trips Most city center businesses Overall city productivity Pedestrians and cyclists(Litman)Losers Motorists with marginal-value trips City center businesses depending on low-cost weekday car trips Residents and
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