A Comprehensive Transportation Policy for the 21st Century: A Case Study of Congestion Pricing in New York City

This article discusses how the federal government and other jurisdictions, both public and private, could change how we travel to improve our environment now and for generations ahead. It begins with background information on the complex structure of the agencies, at the federal, state and local levels, that have a role in shaping transportation policy and goes on to provide a brief discussion of recent federal transportation bills. New York City's recently defeated congestion pricing initiative is described and assessed as an example of an ambitious federally funded local initiative to reduce vehicle congestion that failed due to political complications. The paper also examines the true cost of transportation including externalities and argues that congestion pricing reflects a more accurate cost of driving. If pricing has a direct effect on consumer behavior, they argue, then increased fees levied on driving will reduce auto use and total vehicle miles traveled. The paper then expands this proposal to regional travel by addressing the cost of flying.