In London, Congestion Pricing Worked

I’m going to New York City next week. This made me think about a recent proposal by Mayor Bloomberg to begin charging cars a ‘congestion fee’ to enter the city. I think this is a fantastic idea.

London began congestion pricing in 2003, and the grumblings of a few have turned into an overwhelming majority of residents saying yes…even when they hiked the daily fee to more than $12. London Mayor Ken Livingstone wrote a piece in the NY Times about his city’s experience.

“Like New York’s plan, London’s congestion program initially met with some skepticism. Before the program began, polls showed that public opinion was divided almost exactly evenly. Since then, opinion has shifted to 2-to-1 in favor.

The results have led us to expand the initial program. In February the existing congestion charging zone was extended westward, doubling its size. Traffic in the extended zone fell by 13 percent.

The next stage of congestion charging in London will be a move to emissions-based charging. This will be aimed at deterring vehicles with the highest carbon emissions, like sports utility vehicles, from entering the city center. The new program will impose a payment of £25 per day for such vehicles, as well as abolish the 90-percent exemption that their owners would receive if they were residents of the congestion charging zone. Incidentally, this charge for S.U.V.’s enjoys 3-to-1 popular support.

Is London’s success a guarantee that congestion charging will work in New York? Of course not. But it is an indicator that properly executed congestion pricing works, and works well. Singapore and Stockholm already operate such programs and other cities are examining them. Given the success of congestion charging in London, this is not surprising.