If you live in New York City (like me), you may be concerned about congestion pricing. It is reasonable to be concerned about it since it an increased cost of entering parts of the city.

Fortunately, congestion pricing is not a unique policy to New York and we have ample research from other cities. Here are the benefits that will arise from congestion pricing:

• A reduction in vehicular traffic in the congestion zone

• A reduction in pollution in the congestion zone

• Faster bus travel in the congestion zone

• Faster travel for all vehicles in the congestion zone

• Fewer vehicular accidents and deaths in the congestion zone.

Additionally, I’d expect some of these benefits spill-over to other areas of the City. Why? If fewer people travel by car from other parts of the city to the congestion zone, there will be fewer cars in the other parts of the city as well.

If you must travel by car (or prefer to travel by car) the main benefit for you, as the driver, is less time in traffic during peak hours in both direction (to and from) and being able to find parking more easily (I’d also imagine parking lots may now have to alter parking prices).

Along with the above bullet points, congestion pricing generates a lot of value to all parties involved - significant health cost reductions, as well as a reduction of wasted time in traffic.

Lastly, please note that I have completely ignored the revenue from congestion pricing. Why? Ultimately, the revenue itself is not the primary benefit of congestion pricing. Although NYC is using this money for the MTA, since this revenue belongs to the City (i.e. city taxpayers) NYC may have as well given it back to City taxpayers.

The main benefit of congestion pricing is putting a price on the externalities caused by driving.