Report: NYC Congestion Pricing May Boost Economy By As Much As $1.3 Billion

New York City’s economy stands to benefit by as much as $1.3 billion annually as a result of a new toll imposed on drivers traveling through Manhattan’s busiest streets, which is helping alleviate traffic congestion and stimulating business activity, according to an economic health-focused civic organization.

Launched on January 5, the congestion pricing initiative is the first of its kind. During peak hours, most drivers are required to pay $9 if they are traveling south of 60th Street in Manhattan. The goal is to reduce the congestion in one of the world’s most traffic-heavy urban areas, as well as generate $15 billion over time to overhaul the city’s outdated transit infrastructure.

According to a report from the Regional Plan Association, which seeks to enhance the area’s economy and living standards, workers entering the toll zone are now saving an average of three to eight minutes in travel time. New Jersey commuters, whether driving or taking the bus, are experiencing the largest time savings, cutting as much as 21 minutes from their round-trip commute. Travelers from Long Island and Queens are benefiting as well, saving up to 13 minutes on their trips.

“There’s an economic benefit for reducing those trip times,” said Kate Slevin, the executive vice president of the RPA. “For every minute you’re sitting in traffic, it’s a drag not only on your time but the broader economy as a whole.”

By cutting down on travel time, commuters have more time during the day to run errands, spend time with their families, exercise, or engage in other activities, Slevin added.

A 2018 study by Partnership for New York City estimated the annual cost of traffic congestion in the city to be $20 billion. The Regional Plan Association, however, chose to examine the opposite side of the equation: how much will the region’s economy benefit from the new toll? The report estimates that time saved through reduced traffic translates into an economic boost ranging from $500 million to $1.3 billion each year, as more people spend less time stuck in traffic.

New Jersey is expected to see the largest economic benefit, with potential gains of up to $756 million annually. Queens is projected to benefit by $257 million, while Long Island may experience a $108 million increase in its economy.

The implementation of the toll has already led to a reduction in traffic. The Metropolitan Transportation Authority (MTA), which oversees the city’s transit system and is responsible for administering the toll, reports that the number of cars entering the tolled zone has dropped by about 60,000 daily, a 10% reduction. Morning travel times for those crossing bridges and tunnels into Manhattan have also improved.

However, while the congestion pricing program is delivering positive results, it faces challenges under the Trump administration. The Federal Highway Administration (FHWA) recently announced plans to rescind its agreement with the MTA, which would eliminate the transit agency’s authority to charge drivers entering the zone. In response, the MTA filed a lawsuit, seeking a court order to invalidate the FHWA’s decision.

{Matzav.com}