Congestion Offsets vs Road Pricing: The quest for efficiency and equity

Matthew Bradley and Jeff Kenworthy help us to set out on our search for USA tollbooth attendenteconomic instruments that can be effective in reducing traffic congestion while leveling the playing field between cars and other transport in ways that are both efficient and equitable.  They tell us that: “A major part of the urban transport problem today is a failure from the very beginning to acknowledge that congestion is fundamentally inequitable and unfair, impractical to construct away, and therefore must be properly charged for and controlled to eliminate the transport system dysfunction which is systemic in cities today.” Recommended reading for anyone with  a serious interest in how to get the most out of economic instruments in our troubled, seriously underperforming sector.

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William Vickerey: On Principles of Efficient Congestion Pricing

William Spenser Vickerey, winner of the Nobel Prize for Economics, is William Vickereyconsidered the father of Congestion Pricing. He first proposed it in 1952, for the New York City subway system, recommending that fares be increased in peak times and in high-traffic sections and be lowered in others. Elected officials considered it risky at the time, and the technology was not ready. Later, he made a similar proposal for road pricing.

This article was written in 1992 by Todd Litman, executive director of the Victoria Transport Policy Institute, to summarize some of the defining  principles set out in Vickerey’s extensive path-breaking early extensive pathbreaking contributions which in many ways defined the field. This essay can be found in its original form in the website of the Institute  at http://www.vtpi.org/vickrey.htm.

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Congestion Pricing: Neoliberal approaches and their results in three world cities

In 2013 we shall be giving quite a lot of attention to congestion pricing or sweden stockholm congestoin chargingcharging by its many names and variants, all of which sharing the goal of finding ways to make drivers pay for entry and use of a scarce resource, road space in city centers . This fascinating article by Themis Chronopoulos which is introduced here takes quite an original point of view in his thorough analysis of three of the most recent and widely followed  projects (or in the case of New York City, would-be project). (Note: A quick search of Google this morning called up some 4,370,000 references under the single term of congestion pricing. Something must be going on.) Continue reading

New York City Congestion Pricing Wars: Ideas vs. politics vs. indifference

This is the first of a two part series by New Yorker Charles Komanoff, an activist, energy-economist and policy-analyst, taking on the loud (and so far powerful) opposition to the concept of bringing road pricing to provide some relief to New York City’s crowded streets.

We are pleased to reprint this short piece with the author’s permission, as published last week in the pages of our diligent Streetsblog New York colleagues, on the grounds that this debate has implications that stretch far beyond that great city’s crowded streets.

We particularly recommend that you take a few minutes to review the Comments that follow this piece. Many of which are informative and quite thought provoking. They provide a good idea of the mental landscape in that city. Click here to view those comments.

Paradox, Schmaradox. Congestion Pricing Works.

– by Charles Komanoff

We’re used to seeing bizarre patterns of thinking on the Wall Street Journal’s editorial pages, but an op-ed in Friday’s Journal took it to a new level: “How Traffic Jams Help the Environment.”

Still more bizarrely, the author was New Yorker writer David Owen, promoter of the commonsensical idea that urban density is energy-efficient, hence big cities are green.

For some reason Owen has taken a dislike to congestion pricing, and it has led him to construct an elaborate Rube Goldberg argument to prove that congestion pricing leads to more driving:

If reducing [congestion] merely makes life easier for those who drive, then the improved traffic flow can actually increase the environmental damage done by cars, by raising overall traffic volume, encouraging sprawl and long car commutes.

What a lovely paradox … and how ridiculous, as Owen could have discovered by giving London’s congestion pricing experience (or Stockholm’s or Singapore’s) more than a cursory glance.

As any student of urban traffic now knows, London’s cordon pricing scheme cut traffic within the charging zone an average of 15 percent, raised travel speeds 30 percent, and greatly expanded bus ridership and cycle commuting — with little increase in traffic outside the zone or other negative effects. (http://www.tfl.gov.uk/assets/downloads/Impacts-monitoring-report-2.pdf)

Nearly seven years on, the reasons are fairly obvious:

* Raising the price to drive into the center of London made car commuting less attractive.

* The gain in driving speeds attracted some new trips but not so many as to cancel the lost ones.

* Bus transit benefited from a virtuous cycle in which improved speeds attracted riders, further reducing traffic and also financing service improvements which attracted still more riders, further reducing traffic, etc.

* Ditto for cycling, though here the synergy was via safety in numbers.

All this was intuited back in the day by Transport for London staff, including Jay Walder, who has subsequently become the new MTA chief. The only uncertainty was the extent to which new car trips attracted by the time savings would undercut the reduction in trips from the congestion charge.

As it happened, some “induced traffic,” as Owen might have termed it, did materialize, but at far less than the one-for-one rate he assumed in his article. Without it, the drop in traffic might have been 20 percent or more. But the actual equilibrium, a settled 15 percent reduction in cordon traffic, was robust enough to achieve the desired results: faster travel by every mode, greater use of transit, and less VMT (vehicle miles traveled). Congestion pricing is indeed green.

To trace Owen’s error, look no further than his hypothesis: “If reducing [congestion] merely makes life easier for those who drive …”

Emphasis added; the “merely” is quite important. When the reduction in traffic is caused by a congestion charge, life is not just easier for those who continue driving but more costly as well. Yes, there’s a seesaw between price effects and time effects, but setting the congestion price at the right point will rebalance the system toward less driving, without harming the city’s economy.

What’s that right price point, then? It’s not quite rocket science to figure it out, though it does take some thinking (not to mention continual tinkering if exogenous reductions in road capacity erode the original congestion benefits, as TfL reported recently). It’s a subject Ted Kheel and I have in fact been thinking about for quite a while now, and if you would like to do some thinking about it too, start with our Balanced Transportation Analyzer — http://www.nnyn.org/kheelplan/BTA_1.1.xls –and contact us with questions or criticisms (email: kea AT igc.org).

In his piece, Owen linked former Londoner and current MTA honcho Walder with the idea of congestion pricing. One can’t help wondering whether he or the Journal intended it as a pre-emptive strike against a possible renewed push for congestion pricing in New York City. Whatever the motivation, it’s disappointing to see a writer who has rightly urged Americans to “live closer” peddling the defeatist — and false — notion that the price of urban virtue is eternal gridlock.

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* Click here to read the original piece in Streetsblog (with Comments)

The author:
Charles Komanoff “re-founded” NYC’s bike-advocacy group Transportation Alternatives in the 1980s, helped found the Tri-State Transportation Campaign in the 1990s, and co-founded the Carbon Tax Center in 2007. Charles’s writings include books, articles, and landmark reports such as Subsidies for Traffic, Killed By Automobile, and the Kheel Report on financing free transit in New York City. A math-and-economics graduate of Harvard, Charles lives with his wife and two sons in lower Manhattan