Value Pricing, Not Congestion Pricing

Want to discredit a good idea? Implement a bad idea but name it after the good idea. That is what New York City is doing with its so-called congestion pricing scheme.

If you think density relieves congestion, try driving around Manhattan.
Flickr photo by 708718.

What Mayor Bloomberg proposes is to charge every car that enters south Manhattan between 6 am and 6 pm weekdays. He would then spend the money on mass transit. To be accurate, this should be called a cordon tax — that is, you pay a tax when you pass a line (a cordon).

True congestion pricing differs in several ways. First, with congestion pricing you pay for the use of a road, not for crossing a line. Second, with congestion pricing, the price varies depending on the amount of traffic there is. If it is constant all day long, it will fail to smooth out the peaks and valleys in traffic flows. Third, a congestion fee (as a opposed to a tax) would be spent on things that relieve congestion rather than on subsidies to other people.

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