Congestion pricing

In an op-ed in the New York Times, "Clear Up the Congestion-Pricing Gridlock," Ken Livingstone, mayor of London, discusses why congestion pricing is a good thing. From the article:

... the success of London’s program can shed light on the current debate in New York.

At that time, London’s business district was undergoing rapid growth, but it was at capacity in terms of traffic. Efforts to channel more cars into the city center simply led to ever lower traffic speeds, which in turn led to business losses and a decrease in quality of life. Simultaneously, carbon emissions were mounting because of the inefficiency of engine use.

In 2003, London put in place a £5 (about $9) a day congestion charge for all cars that entered the center city (the charge is now £8). This led to an immediate drop of 70,000 cars a day in the affected zone. Traffic congestion fell by almost 20 percent. Emissions of the greenhouse gas carbon dioxide were cut by more than 15 percent.

The negative side effects predicted by opponents never materialized. The retail sector in the zone has seen increases in sales that have significantly exceeded the national average. London’s theater district, which largely falls within the zone, has been enjoying record audiences. People are still flocking to London — they’re simply doing so in more efficient and less polluting ways.

There has been a marked shift away from cars and into public transport and environmentally friendly modes of travel. There has been a 4 percent modal shift into use of public transport from private cars since 2000. Simultaneously, the number of bicycle journeys on London’s major roads has risen by 83 percent, to almost half a million a day. Cycling has become something of a boom industry in London, with improvement in health for those involved and substantial benefit for the environment.

I guess it makes sense, just because it requires drivers to bear more of the costs that they normally impose on others.