Name: Singapore, London, and Now New York: Big Cities Are Adopting Congestion Pricing
Uploaded: 2023-09-22T15:52:00Z
Duration: 6 min 20 s
Description: New York City has been considering congestion tolls as a way to help unclog its roads. WSJ’s George Downs explores if these tolls actually reduce traffic and whether other U.S. cities will adopt them. Illustration: George Downs

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New York City has been considering congestion tolls as a way to help unclog its roads. WSJ’s George Downs explores if these tolls actually reduce traffic and whether other U.S. cities will adopt them. Illustration: George Downs

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Singapore, London, and Now New York: Big Cities Are Adopting Congestion Pricing

Today's mission is to intentionally get stuck in traffic. Check this out, complete standstill. I've actually really outdone myself here. Been here for about five minutes. Fun. Inner city traffic can be a real nightmare. A great way to spend a hot Thursday. In New York City, the traffic is so bad that the MTA estimates New Yorkers lose an average of 117 hours in congestion each year. But here in London and in Singapore, we have a thing called congestion tolls that aims to reduce traffic by charging drivers to enter busier parts of the city. And now congestion tolls are headed to New York.

It's gonna be implemented in about a year. We're actually installing the infrastructure, all the cameras and the sensors right now.

But here's the thing, even though there's a congestion charge in London and has been for decades, I'm still stuck in traffic and the roads have actually been getting slower. So do congestion tolls work? How will New York use them? And are these cameras headed for other US cities? Let's find out. So here's how it works. London's congestion charge zone covers around eight square miles in the center of the city and the boundaries delineated by these red circles on the road and these signs. I've just crossed over the congestion charge boundary zone where I will be picked up by some cameras that are just up there that will register my license plate and charge me 15 pounds to drive in the zone for the day, which is around $19. It's not actually me that'll be charged, it's my wife 'cause it's all linked to her account. Sorry, darling. So what's New York's congestion charge going to look like?

There you are.

How you doing? Nice to meet you.

How you doing?

George: To answer that, here's Metropolitan Transportation Authority CEO, Janno Lieber.

All of Manhattan, south of 60th Street, which is just at the bottom of Central Park, is going to in effect be a tolled area. There are two marginal highways on the west and east side of the island of Manhattan where you can circumvent the toll. We think the price is gonna be somewhere between 10 and maybe 20 bucks and the tolls are gonna automatically appear on people's E-ZPasses.

The MTA told me it was still finalizing pricing but it was considering discounts and tax credits for low income frequent drivers and residents. It also told me it would monitor traffic levels around the congestion zone to try and avoid a buildup from people avoiding it. Where will the congestion charge money be going?

It has to be used to improve the mass transit system but we're not just maintaining what we have. We're building, extending subway lines. With climate change and the air quality issues that all cities are facing, there's really no choice.

The MTA says that 80% of the money will be used to improve New York's Subways and buses while 10% each will be going to the Long Island Railroad and Metro North Railroad. But implementing a congestion toll can be pretty divisive. After all, these tolls are designed to make one of the most convenient forms of transport a financial inconvenience. The MTA has already received requests from over 100 different groups that believe they should be exempt or discounted from the toll, from musicians to hearse drivers.

We have even the farmers have claimed that they should not be charged. There are a lot of good stories out there but the bottom line is, in the United States, we don't have a history of exempting people from tolls.

But the loudest critic of New York's plan has been New Jersey. See, folks driving from New Jersey into New York already pay between 14 and $17 in tolls when they use these bridges and tunnels. New Jersey officials have said an additional congestion toll would unfairly burden New Jersey commuters and that a fuller environmental impact study should be conducted. It then sued the Department of Transportation.

New Jersey's actually initiated a lawsuit against the federal government for approving our plan. And the governor of New York State has said, respectfully, pound sand, this is going to happen.

So if it's going to happen, can it work? Can congestion tolls make roads faster? Well, New York's plan is yet to get off the ground but London's has been in place for around two decades. So I went to Transport for London, or TFL, the government body responsible for London's transport networks, kinda like the city's equivalent of the MTA. Here's Alina Tuerk. Are they effective?

Yes, they are effective. We found that when we first introduced the charge, traffic entering the zone dropped by 18% and congestion dropped by 30%.

But the problem is London's roads didn't stay that way.

Over time, congestion levels have started to go up again.

TFL data shows that from 2010 to 2019, the average speed in central London got slower from nine miles an hour to seven, and delays increased from around 1.5 minutes per kilometer to around 2.5. So what's going on? Why am I still stuck in traffic? Well, even though some drivers can choose to switch to a city's public transport network, others, like for hire vehicles and delivery drivers, can't. And the number of those drivers has increased over the years. Over 50% of the vehicles in Manhattan's proposed congestion tolling area are for hire vehicles and taxis. Many cities have also reallocated road space to buses, bikes, and pedestrians.

There's now also less road space available, hence that balancing out with the congestion levels.

But even if congestion zones don't always make roads quicker, they can have other benefits. One is that they can reduce emissions. TFL say that CO2 emissions in London have fallen by some one million tons since 2010 in part due to the congestion zone. But another is that they can be very good at raising money, whether that was the intended plan or not.

It's not a money-making scheme or it hasn't got a revenue-raising objective, but nevertheless, it does make a net surplus.

So with congestion charging seeming destined for US streets, does that mean we're going to start seeing it across other cities in the US? Well, Janno hopes so.

I not only think it could work, I know that other cities are watching what we're doing closely.

Cities from LA to Seattle have been discussing whether systems like this could be used to alleviate their traffic issues. And in London.

We are getting a lot of interest, a lot of inquiries from cities all around the world.

So keep an eye on New York. While its congestion toll will likely be the very first in America, it might not be the last.

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George Downs explores the evolution of transportation, from electric vehicles to commercial aviation and the future of spaceflight.

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