U of M CE 5212 - Case Study - Congestion Pricing in New York

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Bloomberg’s Folly?OutlineWhat is congestion pricing?Why is Congestion a ProblemCosts of CongestionHow Congestion Pricing Manages CongestionTypes of Congestion PricingCongestion Pricing in the U.S.?BenefitsSlide 10CostsIs There a Traffic Problem in New York City?Slide 13Slide 14PlaNYC 2030Pilot Congestion Pricing ProgramNYC Congestion Pricing ZoneFee CollectionFee Collection and EnforcementHow it WorksProjected Impacts of PlaNYCImplementationSlide 23Case StudiesSingaporeSingapore TimelineInitial ProblemsNew Tactics EmployedResultsLondonLondon Congestion Charging SchemeCongestion Charging ZoneSlide 33Visible ResultsOther ResultsCommunity SupportWinnersLosersSlide 39Discussion QuestionsBloomberg’s Folly?Congestion Pricing in New York Emma 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 traffic management strategyCharges drivers for the use of roadsA method of both managing traffic congestion and generating 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 Pricing Manages CongestionCharges for use of congested areas during times of peak use provides an incentive for people who do not need to be on the road to postpone trips to non-peak hours or shift modesThese trips would be more efficient during off-peak hoursTypes of Congestion PricingCordon PricingLondonCongestion Pricing in the U.S.?FHWA funds available under SAFETEA-LU for implementing congestion pricingUrban Partnership Agreements – U.S. Department of TransportationPublic-Private Partnership (PPP)BenefitsReduction of peak-period and total roadway congestionBetter mass transitReduction of greenhouse gas emissions and energy consumptionIncreased traffic safety?(Transportation Alternatives)CostsInconvenience to motoristsPrivacy issuesIs There a Traffic Problem in New York City?Is There a Traffic Problem in New York City?(NYC Department of Transportation, PlaNYC 2007)Is There a Traffic Problem in New York City?YES!•50 hours lost to congestion in 2003•87% of NYC voters agree that traffic congestion is a “serious/somewhat serious problem” (Schuster 2007)PlaNYC 2030A comprehensive sustainability plan for the city’s futureIncludes a pilot congestion pricing program for managing traffic in Manhattan’s Central Business DistrictJames Estrin/The New York Times New York Mayor Michael Bloomberg unveiling PlaNYC 2030Pilot Congestion Pricing ProgramAims to reduce the amount of congestion during peak hours in ManhattanCharges a flat fee of $8 for cars and $21 for trucks to enter and drive around in ManhattanBuses, taxis, for-hire vehicles, vehicles with handicapped license plates, and emergency vehicles exempt Estimated cost of $223 millionNYC Congestion Pricing ZoneFee CollectionThere would be no toll gates or waiting areasExisting EZ-Pass System would be usedFee Collection and EnforcementCars without transponders can pay their tolls within a 48 hour window of accessing the zone either online or at area merchantsThe license plates of all vehicles are recorded by cameras and violators are issued 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 will discontinue traveling to the zone$400 Million in net revenue in the first yearImplementationNYC has not dedicated funding for the project yetIt is eligible for $354 million of U.S. DOT Urban Partnership Agreement funds$10 million of this will be immediately available once the program is written into law by the State LegislatureImplementationThe State Legislature created a Congestion Mitigation Committee to study the pilot program in August 2007.The Committee will issue its report on January 31, 2008.The State Legislature and City Council are required to vote on enabling legislation by March 31, 2008.The city’s goal is to have the program operating by Spring 2009.Case StudiesCongestion pricing schemes have been successfully implemented in:-Singapore, 1975-London, 2002-Stockholm, 2005Singapore100% urbanized city-stateIsland geographyIncreasing private vehicle ownershipDensely populatedSingapore Timeline1975: Area Licensing Scheme1991: Weekend Car Scheme1994: Off Peak Car Scheme1998: Electronic Road PricingInitial ProblemsDrivers who would have driven during restricted times now drove before or after to avoid feeDrivers who would have driven through Restricted Zone took other routes to avoid feeDrivers who avoided Restricted Zone in the morning drove through it in evening when there was no feeNew Tactics EmployedIncreasing length of restricted timeAll-day restricted time began in 1994Shoulder Pricing system: increased fee during rush hourSwitch from manual toll booths to electronic fee collectionResultsInitially, traffic in Restricted Zone decreased 45%, creating underutilization of roads (Toh)Transit share increased from 33% before ALS 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 ($4-8 million) 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 Congestion Charging Zone7 a.m.-6 p.m., Mon-Fri£8 ($16.50) chargeElectronic reading systemProfits fund transport initiativesCongestion Charging Zone(www.bbc.co.uk)How it WorksCongestion Charging Zone clearly markedPhotograph of license plate matched to vehicle registrationAccount billed Payment made online, by text, at payment station, participating shops, or prepaid on account by midnightVisible ResultsOther ResultsShare of automobiles decreased to 10% (Litman)Modal shift to transportTraffic delays


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U of M CE 5212 - Case Study - Congestion Pricing in New York

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