Just Who Should Pay for What? Vertical Equity, Transit Subsidy and Road Pricing: The Case of New York City

Abstract

In this paper, equity and cross-subsidization issues associated with the congestion pricing scheme proposed as part of New York City’s PlaNYC are examined, as are initial usage patterns, user income distribution, and revenue distribution. We find that equity concerns surrounding the proposal are supported by economic analysis. If New York City is to revisit congestion pricing in the future and make it more politically palatable, it will need to find a way to mitigate these equity concerns.

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