Thursday, March 22, 2018

Morning Browse: Congestion Charges

New York is looking at introducing a congestion charge for part of the city. London and Stockholm already use congestion charges to decrease traffic in certain areas, but New York would be the first city to introduce such a system in the United States.

The U.S. does use congestion charges on its toll roads. The purpose is to keep the traffic on toll road flowing at a certain minimum rate. To roads in Northern Virginia aim for an average speed of 65 m.p.h..

The proposals have been attacked by some, saying that congestion charges and toll roads create a separate infrastructure for the haves and leaves the have-nots in traffic. This objection, however, misses the point. The fees raised from congestion charges are used to maintain all infrastructure, not just toll roads.

It reminds me of the economics of airplane tickets. Simply put, if it were few a few people flying in first class, airlines wouldn't be making money on a lot of flights. First class makes transatlantic flights economically feasible.


China also makes extensive use of toll roads for highways. One of the nice perks of a holiday is that sometimes the government does a deal and reduces the tolls, which sort of defeats the purpose. Anyways, thanks for reading.

Recently, things have been busy at work, so I'll be putting out just one or two posts a day.

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