Traffic vs. Costs: The True Impact of NYC’s Congestion Pricing Plan

What Price Big City Traffic Congestion?

New York City introduced its congestion pricing plan on January 5, 2025, prompting criticism that it increases already excessively high city business costs. These cost-related objections are predictable; the more compelling issue is whether such schemes are worthwhile in large cities like New York, plagued by worsening traffic congestion problems.

The answer is far from straightforward and hinges mainly on how the various stakeholders put a price on time.

Red Flags Raised

During the plan’s introductory period, small trucks entering the Congestion Relief Zone in Manhattan during peak hours (5:00 am to 9:00 pm on weekdays and 9:00 am to 9:00 pm on weekends) pay a toll of $14.40 and $3.60 overnight. For large trucks, the toll is $21.60 and $5.40, respectively. Passengers and small commercial vehicles with a valid E-Z Pass pay $9.00 and $2.25. These latter vehicles are only charged once per day. Toll increases will be phased in over the next six years.

According to trucking advocates, delivering loads to NYC businesses is already comparatively expensive and will rise even more because freight c…

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