2012
DOI: 10.5038/2375-0901.15.2.6
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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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Cited by 11 publications
(6 citation statements)
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References 13 publications
(17 reference statements)
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“…Examining the equity impacts of congestion pricing in Stockholm, Eliasson and Mattsson argue that initial travel patterns are the most important for determining equity impacts, as initial travelers are the ones most affected by change (18). Peters and Kramer make the same argument in work on New York City (29).…”
Section: Methodology: Measuring the Distribution Of Benefits And Costsmentioning
confidence: 82%
“…Examining the equity impacts of congestion pricing in Stockholm, Eliasson and Mattsson argue that initial travel patterns are the most important for determining equity impacts, as initial travelers are the ones most affected by change (18). Peters and Kramer make the same argument in work on New York City (29).…”
Section: Methodology: Measuring the Distribution Of Benefits And Costsmentioning
confidence: 82%
“…There is a large literature on the topic (e.g., Ison 1998, King et al, 2007, Levinson 2010and Peters and Kramer 2012. Despite the recognition that revenue allocation 15 can be a major lever to gain community support for road pricing reform, as shown by statistically significant parameters for the three sources of funding hypothecation (i.e., public transport, roads and reductions in personal income tax), there is also a view and evidence that revenue redistribution cannot resolve all equity and fairness concerns.…”
Section: Estasyvarmentioning
confidence: 99%
“…In the transport sector, it is recognised that transport policy gives rise to winners and losers [21,22] but the discussion of equity from a formal economic perspective (in terms of vertical and horizontal equity) is lacking in the literature. There are some notable exceptions, for example, Peters and Kramer [23] or Welch [24] but these are used for the evaluation of particular policies, for example public transport subsidies [23] and public transport and Are network planning guidelines based on equal access equitable? Mulley, Ma, Clifton and Tanner affordable housing [24].…”
Section: Equitymentioning
confidence: 99%