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Congestion Pricing in New York City

Congestion Pricing in New York City Why It Failed. How It Can Succeed. By Charles Komanoff Nurture Nature Foundation New York City South China University of Technology Guangzhou 9 March 2010 Why Congestion Pricing failed in New York City in 2007-2008: “Politics.” So?

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Congestion Pricing in New York City

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  1. Congestion Pricing in New York City Why It Failed. How It Can Succeed. By Charles Komanoff Nurture Nature Foundation New York City South China University of Technology Guangzhou 9 March 2010

  2. Why Congestion Pricing failed in New York City in 2007-2008: “Politics.” So?

  3. Politics and the difficulty of change • "There is nothing more difficult to take in hand than to take the lead in the introduction of a new order of things ... the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new." – Machiavelli, The Prince (1513) • “Losers cry louder than winners sing.”

  4. Mayor Bloomberg’s Proposal • London model • $8 to enter CBD • Rivers+ 60th St • 5 days, 12 hours • Taxis exempt • “Black cars” $1 • No intra-CBD toll • Net existing tolls • Surplus to MTA

  5. Why the Bloomberg Proposal Failed • Too Manhattan-centric • Benefits for center, tolls for outside • Mistrust of transit provisions • “MTA rat-hole” • Benefits not dramatic enough • Too little traffic-speed gain (< 7%) • Air quality improvements unclear • Phony populism

  6. A New NYC Pricing Plan Must: • Massively reduce congestion • Generate big revenue for transit • Expand travel choice • Match burden to benefits • Be marketed truthfully • Come from the people, not mayor

  7. Time Cost of Traffic Congestion

  8. An $8 taxi ride imposes $21 of “social delay costs” An average yellow-cab trip within the CBD (3 kilometers) imposes $21 worth of delay costs on other road users (in autos, taxis, trucks, buses)

  9. Kheel-Komanoff Plan • Toll all trips into CBD (except taxicabs) • Variable toll: $2-$9 (trucks = 2x) • Weekdays: $3/$6/$9 • Weekends-Holidays: $2/$3/$4 • Taxis: 33% surcharge on each fare • New tolls add to current tolls (no net) • Revenues → MTA → service + fares • Transit improvements up-front + after

  10. K-K Plan Results: Traffic Flow Average Weekday Speed Gain: 21%

  11. K-K Plan Results: Time

  12. K-K Plan Results: Revenue

  13. Manhattan Manhattan Taxi Surcharge is Essential 1/3 of CBD Traffic is Yellow Cabs. 3/4 of Cab Use is by Manhattan Residents. Manhattan pays Manhattan pays

  14. K-K Plan Results: Cost-Benefit

  15. K-K Plan Next Steps • Enlist support from “stakeholders” • Enhance traffic model (“BTA 1.1”) • Subject to modifications • Toll levels and design? • Subsidies? • Maintain fare vs. invest in transit • Transit vs. tax relief • Politics = “Art of the Possible”

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