Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Congestion Pricing

Another Free-Market Argument for Congestion Pricing

An opinion piece in today's New York Sun addresses the congestion-pricing incentives laid out in the Bush Administration's new budget proposal. The article, by Diana Furchtgott-Roth, a former chief economist at the US Department of Labor who is now with the conservative Hudson Institute, argues that "the only effective way to reduce traffic congestion is to use pricing," and that "Americans rely on prices for a
stable supply of food, clothes, water, energy, and telecommunications.
Why should roads be an exception?"

Citing Singapore, Oregon, and California as potential models for different types of variable road pricing, Furchtgott-Roth attempts to address objections from both the left and the right:

Some on the political left claim tolls are unfair to lower-income drivers. To resolve this, Alameda County, Calif., and Atlanta, Ga., are experimenting with Fast and Intertwined Regular lanes. Drivers in fast lanes pay tolls, and drivers in slow lanes receive credits. Such credits can be used toward payment of tolls for future trips, or for other transit-related activities. In New York, credits could be given to lower-income drivers through license plate numbers.

But it's not tolls that are particularly detrimental to the poor, because they can be rebated - it's congested roads. Congestion lowers mobility, making it harder to travel to much needed jobs. Converting some highway lanes to toll lanes gives low-income drivers a valuable choice of more time. A waiter on his way to pick up a child from day care might find a toll cheaper than a late fee.

An objection from the right is that President Bush is breaking his no-tax pledge. However, like parking charges, tolls are not a tax. They are a user fee for road space. Toll revenues can be used not only to ensure that road space is not overly crowded and available when people most need to use it, but also to finance road improvements. One example is new truck-only highways, such as a new tunnel from Brooklyn to New Jersey.

That waiter example isn't exactly compelling. But judging from the debate that's been going on here all week over the congestion-pricing question, it seems Streetsblog readers will have their own thoughts on Ms. Furchtgott-Roth's theories. Anyone care to discuss?

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: Are We All Living in a ‘Carspiracy’?

How does "car-brain" shape the way we think about the world — even in relatively bike-friendly countries like the U.K.?

July 26, 2024

Friday’s Headlines Share and Share Alike

Bikeshares, and e-bikes and scooters generally, are becoming more popular. That's led to more injuries, highlighting the need for better infrastructure.

July 26, 2024

What the Heck is Going on With the California E-Bike Incentive Program?

The program's launch has been delayed for two years, and currently "there is no specific timeline" for it. Plus the administrator, Pedal Ahead, is getting dragged, but details are vague.

July 26, 2024

Talking Headways Podcast: Have Cities Run Out of Land?

Chris Redfearn of USC and Anthony Orlando of Cal Poly Pomona on why "pro-business" Texas housing markets are catching up to "pro-regulation" California and what it might mean for future city growth.

July 25, 2024

The Paris Plan for Olympic Traffic? Build More Bike Lanes

A push to make Paris fully bikable for the Olympics is already paying dividends long before the opening ceremonies.

July 25, 2024
See all posts