NEW YORK (BLOOMBERG) —
The New York City’s local economy could see an increase of up to $1.3 billion each year due to reduced traffic congestion from a new toll for driving through Manhattan’s most crowded areas, which would also boost commercial activities, says a nonprofit organization dedicated to maintaining economic well-being.
On January 5, New York launched an unprecedented congestion charge where drivers typically pay $9 to travel below 60th Street in Manhattan during rush hours. This initiative seeks to alleviate traffic in one of the globe’s most gridlocked cities and generate approximately $15 billion for updating the city’s deteriorating public transportation system.
Employees commuting into Manhattan’s toll area are saving approximately three to eight minutes of their travel time, as stated in a report published on Tuesday by the
Regional Plan Association
This initiative advocates for methods to enhance the region’s economic conditions and overall living standards. Residents of New Jersey who drive their own vehicles or take the bus to commute are experiencing significant benefits, reducing their total travel time up to 21 minutes per day during round trips. Meanwhile, commuters originating from Queens and Long Island are managing to save approximately 13 minutes each day.
There’s an economic advantage to cutting down these travel times,” stated Kate Slevin, the RPA’s executive vice president, during an interview. “Each minute spent stuck in traffic doesn’t just hinder personal productivity; it also has a negative impact on the overall economy.
Reducing the duration spent commuting to and from work provides individuals with additional time throughout the day for tasks like running errands, spending quality time with family, working out, or engaging in other pursuits, according to Slevin.
Although a 2018 report from the Partnership for New York City estimated that traffic congestion costs the city around $20 billion annually, the Regional Plan Association (RPA) looked at this issue differently. They explored the positive impact on the area’s economy due to reduced traffic following the introduction of new tolls. According to their analysis, the yearly savings in time could amount to between $500 million and $1.3 billion, as fewer hours are spent stuck in traffic.
New Jersey is poised to receive the biggest boost economically with an estimated yearly uplift of up to $756 million. In contrast, Queens might experience an annual advantage of around $257 million, whereas Long Island could benefit by approximately $108 million each year.
The introduction of the new toll has significantly reduced traffic. Since the implementation of the fee, there are approximately 60,000 fewer vehicles entering the tolled area each day, representing a 10% decrease, as reported by the Metropolitan Transportation Authority—the agency overseeing both the city’s public transportation network and this toll initiative. Early morning commute times across the bridges and tunnels heading towards Manhattan have also become shorter.
Although congestion pricing has several advantages, the initiative faces challenges under the Trump administration. Recently, the Federal Highway Administration announced its intention to revoke the accord with the MTA, which permitted the transit authority to impose fees on vehicles entering the designated area. In response, the MTA promptly filed a lawsuit aiming for a judicial declaration that the FHWA’s moves be deemed “invalid and of no effect.”
The tale initially surfaced on Bloomberg.com.
