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

Transportation’s Role in Reducing U.S. Greenhouse Gas Emissions: Volume 2
pricing is “unfair” to low-income drivers has not been a major concern in Singapore,
London, and Stockholm after implementation; in fact, in both London and Stockholm it
has been argued that the equity impacts have been positive due to the significant
improvements in public transportation (K.T. Analytics, 2008).
Cordon/area pricing should also result in improved air quality as a result of reduced VMT
and congestion, as well as reduced crashes due to lower exposure rates. Evaluation of the
London system found reductions in NOx emissions of 8 percent and PM10 emissions of
6 percent in 2003 within the charging zone, as a result of changes in traffic volumes and
speeds after pricing was implemented in 2002. However, there was a slight increase in
PM10 emissions on the inner ring road just outside the zone, as a result of increased traffic
volumes (Transport for London, 2007). Stockholm’s system was estimated to reduce NOx
emissions by 7 percent and particulate emissions by 9 percent in the inner city (K.T.
Analytics, 2008).
Feasibility
In the U.S., cordon pricing came close to being implemented in New York City, but ran
into political barriers. In general, it will most likely be opposed by businesses in the
cordoned area, who fear that customer traffic will decline or employees’ commutes may be
negatively impacted; as well as by commuters or other visitors to the cordoned area from
other locations. However, opposition to schemes implemented in London and Stockholm
has waned as clear benefits have been achieved in terms of reduced traffic congestion, and
transportation alternatives have improved. A five-year evaluation of the London pricing
scheme found that retail sales in central London have continued to experience strong
growth, and other sectors have shown no evidence of reduced economic performance
compared to comparison areas (Transport for London, 2007). A 2006 referendum in
Stockholm found majority support for the trial pricing scheme among City of Stockholm
residents (52 percent in favor versus 46 percent opposed); the scheme was then made
permanent despite opposition from some of the surrounding municipalities (K.T.
Analytics, 2008).
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