Congestion pricing has been used by other cities around the globe. According to Wikipedia: “Singapore was the first country to introduce congestion pricing on its urban roads in 1975, and was refined in 1998. Since then, it has been implemented in cities including London, Stockholm, Milan, [and] Gothenburg.”

And the basic logic is impeccable. Everybody dislikes overly congested roads, which impose costs in time, fuel, wear and tear – and stomach lining. No single individual can affect overall congestion by changing his or her driving habits. But by imposing a common congestion charge, the reductions in travel are coordinated and reduce congestion. That should be popular, right?

There are, however, a couple of catches. In theory – there is no more frightening phrase to policymakers than “in theory” – the revenue from the congestion fee would be returned to the populace by reducing general taxes. That is not the plan in New York, and there is good reason to believe that people are skeptical that the money will be used wisely. As Fareed Zakaria put it recently in The Washington Post when comparing New York and Florida:

They have comparable populations — New York with about 20 million people, Florida with 23 million. But New York state’s budget is more than double that of Florida ($239 billion vs. roughly $116 billion). New York City, which is a little more than three times the size of Miami-Dade County, has a budget of more than $100 billion, which is nearly 10 times that of Miami-Dade. New York City’s spending grew from 2012 to 2019 by 40 percent, four times the rate of inflation. Does any New Yorker feel that they got 40 percent better services during that time?

Notice, also, that even if the taxes were cut, one cannot guarantee that it would balance out on a case-by-case basis. Anything that generates winners and losers is a source of political heat.

There is also a big difference between an ongoing congestion fee and the impact of imposing one. In the latter case, people who bought homes and cars, and accepted jobs, might find that the congestion fee changes the math on many fronts. These new, windfall losses would be very unpopular. On the flip side, residences in the congestion zone that permit pedestrian commutes get windfall gains. Again, winners and losers means appeals to the politicians.

The New York City initiative is in its infancy. Its progress will be interesting to monitor.