New York's Congestion Pricing Plan Is Bad Economics
07/08/2023 23:42
The advantages of such schemes are usually clear, but what Manhattan needs right now is more people and more crowding, not less.
The advantages of such schemes are usually clear, but what Manhattan needs right now is more people and more crowding, not less.
New York needs more congestion.
Photographer: Michael Nagle/Bloomberg via Getty Images
When should an economist modify his or her general principles in light of special situations? That is the question I face while pondering the recent plans of New York to impose congestion tolls on drivers moving south of 60th Street into the city’s central business district. I’ve been a long-time advocate of congestion pricing for major cities and highways, but I am not ready to buy into this scheme.
The advantages of congestion pricing are manifest. In major cities the streets often are too crowded, and the presence of one driver imposes a negative externality, or cost, on other drivers. If you levy a charge for road use, the marginal drivers who otherwise might have walked, biked, taken the subway or stayed at home will be off the roads. Carbon emissions will fall as well.