Four Ways New Yorkers Will Benefit From Congestion Pricing

1. Congestion pricing is good for transit

New source of funding for transit improvements.

Congestion pricing will provide $491 million in net revenue each year to be dedicated to capital improvements in the transit system. If made permanent, congestion pricing revenue can then be bonded to help finance billions of dollars in needed new transit projects. 

The number of new transit riders going into Manhattan will rise only slightly. 

Drivers who switch to transit will amount to fewer than 3 people to a subway car. This is because transit riders already vastly outnumber drivers. So even though congestion pricing will significantly reduce traffic, it will only increase Manhattan-bound ridership by less than 1 percent.

Transit improvements to take place before congestion pricing.

The Metropolitan Transit Authority has recommended a series of transit expansions to take place before pricing is switched on to accommodate the additional riders. (View high-resolution map of transit plans.) Improvements such as 309 new buses will be funded in part by a $354 million grant from the federal government that will be forfeited if the legislature does not act before March 31, 2008.

2. Congestion pricing is good for the environment

Cleaner air, improved health

Congestion pricing will improve our health and reduce harmful pollution by significantly cutting the stop-and-go traffic that produces the most emissions. These reductions extend to each of the five boroughs and beyond. Some areas of Brooklyn and Queens experience especially high reductions due to the large amount of Manhattan-bound traffic in these neighborhoods.

Reduced global warming pollution

On average, a car trip is five times more carbon intensive than a subway ride. Stop-and-go traffic produces even more carbon emissions. Thus, providing revenue for transit, through congestion pricing, helps in the fight against global warming. Investing in transit now is the best way forward if we want to reduce carbon emissions.

3. Congestion pricing is good for business

London and Stockholm have both adopted congestion pricing systems and their examples tell us a great deal about the benefits we can expect to bring to small businesses: 

• Significant traffic reductions. In London, traffic delays decreased by 30%. Businesses in Stockholm were able to make 25 % more deliveries.
• Cost savings and greater productivity. Retail trade in Stockholm increased both inside and outside the charge zone, while retail sales in London are growing faster than in the rest of the U.K.
• Approval from business. Most London businesses surveyed (91 percent) in 2003 were either positive or neutral about the congestion charge.
• No decrease in number of customers. In London, there was no significant change in the number of visitors to central business district.

Reducing traffic through congestion pricing is expected to reduce travel time on New York’s major corridors, allowing for faster deliveries (see map ).

4. Congestion pricing is a fair solution

Transit is used by the majority of New Yorkers with only 5 percent of commuters driving into the central business district . Four out of five of those drivers have access to time-comparable mass transit. Furthermore, those who choose to drive have a median income 30% higher than transit riders.

Nevertheless, the Traffic Congestion Mitigation Commission has also recommended that the state consider a tax credit to safeguard against any unfair impacts on low-income drivers. While the wealthier minority of motorists will pay, the vast majority of New Yorkers will benefit; revenue from congestion pricing will go to transit improvements that ensure more reliable and timely commutes for all citizens.

Congestion pricing is equitable regionally, too, since transit and traffic benefits are widespread throughout each of the boroughs and surrounding areas. The NYC Department of Transportation is currently studying the option of residential parking permits as a solution to combat any park-and-ride activity in the surrounding neighborhoods.

Posted: 01-Jan-1900; Updated: 17-Sep-2008