Transportation's Role in Reducing U.S. Greenhouse Gas Emissions ...

Transportation’s Role in Reducing U.S. Greenhouse Gas Emissions: Volume 2
be reduced by 5 to 8 percent regionwide depending upon the pollutant (Harrington,
Houde, and Safirova, 2007).
Feasibility
From a technical standpoint, congestion pricing is relatively easy to implement on facilities
that already are tolled. However, there is likely to be general public opposition to paying
for something that was previously free, as well as opposition specifically regarding equity
concerns. Implementing pricing on currently nontolled facilities will face numerous
additional hurdles, including the need for broader-scale deployment of toll collection
technology; privacy concerns related to data collection and monitoring; and reluctance to
cede control of transportation infrastructure to private entities (for privately operated
facilities) or the need to involve existing operators of private toll facilities. If congestion
pricing is implemented only on a limited basis (e.g., only freeways), diversion of traffic to
other nontolled facilities is likely to be a significant concern because of the impacts on
neighborhood and local traffic.
Cordon/Area Pricing
Description
Cordon or area pricing would apply a
fee for vehicles to enter or drive within a
selected area, such as a central business
district (CBD). 13
The funds could be
used for mobility improvements or for
other purposes. Cordon or area pricing
have been implemented in a few
European and Asian cities including
London, Stockholm, and Singapore.
While no U.S. cities have implemented
cordon or area pricing, cordon pricing
has been considered in New York City
(Manhattan) and San Francisco.
Thus far, implementations of cordon and
area pricing abroad have reinvested
funds into transit—thereby achieving
additional mode shifts and VMT
reductions beyond what would be
Cordon/Area Pricing
Benefits: Low: 2-3 mmt CO2e in 2030
Direct Costs: High: $500-$700 per tonne
Net Included Costs: Net Savings: -$600 per tonne
Confidence in Estimates: Low
• Benefits will be strongly dependent upon
operation of pricing system, geographic scale
applied, baseline congestion levels
Key Cobenefits and Impacts: Mixed
• Mobility decreases for some travelers,
increases for others
• Equity impacts will depend upon how
revenues are used
• Transportation revenue source provides
opportunities for reinvestment
Feasibility: Low-Moderate
• A few international examples
• Unlikely to be accepted in most U.S. cities
Key Policy Options:
• Requirements or incentives for major cities to
implement cordon/area pricing systems
13 “Cordon pricing” would involve charging a fee to vehicles entering an area, while “area pricing”
would involve charging a fee to any vehicle operating within the area, whether or not it crosses
the boundary of the area.
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