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We've talked a few times about New York's congestion pricing program. On February 19, Secretary of Transportation Duffy revoked authorization for this program based on two defects. One, that cordon pricing where a toll-free route exists is allowed for Interstates, but no other roads -- and in any case no toll-free route exists under New York's program. Second, that the program in fact exists to fund the MTA (state run public transportation, including the subway), not to reduce congestion. By statute any congestion pricing program requires authorization from the Department of Transportation, so this is the end of the program, right?
Wrong. Governor Hochul refused to shut it down by a March 21 deadline, calling instead for "orderly resistance". The US DOT extended the deadline until tomorrow. Hochul still refuses to shut down the program.
Unsurprisingly, there has been nothing said about the flagrant disregard for rule of law by the executive of New York.
My understanding is that this is a federal matter because it involves interstate roads which were built with federal funds.
I think that a workaround would be to just charge tolls on non-federal roads. The people driving from and to Manhattan tend not to do so just to enjoy the view of the Hudson from a federal highway. They want to reach a destination in Manhattan, and they need to use local roads to get to it. So just charge them to use the local roads instead.
On the subject itself, I am a bit of two minds. On the one hand, I get that putting prices on things is probably the most efficient way to allocate rare resources. On the other hand, there is something delightfully egalitarian about public roads. It does not matter if your car is worth 500$ or 500k$, when it comes to traffic -- and especially traffic jams -- everyone is equal. Well, somewhat equal. Of course, sitting in a hot, cramped, terrible car waiting for the traffic to move is different than riding in a nice, air-conditioned car with some stop and go traffic assistance system, and that is different from riding in the back of a limousine drinking champagne with an escort and an 8k TV screen while occasionally berating your driver on the intercom. Still, unless you can afford to ride a helicopter to work you are stuck here with the rest of us.
The interstate commerce nexus is pretty strong here, as is the Federal funding. Manhattan gets all sorts of Federal funding for both transit and roads. Even without Wickard v. Fillburn, it isn't practical to avoid it.
Not when there's a monopoly provider.
The fact that there's a monopoly provider is one part of it, but there's also the part where the service being provided has substantial negative externalities. I don't know what price leads to maximum utility when that's taken into account, but I imagine it's closer to the price in a monopoly market than the price in a competitive market. Heck, it might even be higher than that. Depends on the demand curve, of course.
On the other hand, with something like the public transit system which has much less (though of course not zero) negative externalities, I think what you said applies a lot more. I think there's even an argument for pricing it somewhat below-market because it can pull commuters away from driving, if you don't have something like a congestion charge already.
Claims of externalities are usually a way of putting one's finger on the scale, and this is a perfect example. You've decided driving is bad and transit is good, so you handwave into existence negative externalities for driving which are much greater than those of transit, and set their value to whatever works for your argument.
What specifically about mass transit do you think makes it come anywhere close to private auto transport in terms of negative externalities?
It might have lesser externalities, but it also has much lesser utility. Choosing where I go, and when, is the whole point of having a car. Not being able to choose my destination and being forced to adhere to another's schedule aren't externalities, they're just providing an inferior product. That before you address the issue of sharing space with strangers, which might be acceptable if society were high trust, but becomes intolerable in low-trust cities.
I'd rather have the better option, thank you.
That's perfectly fine, and I totally get why some people choose to drive. What I object to is not some people choosing to drive, but the cost of that driving being borne by people who don't choose to drive -- and even by others who choose to drive. It's like a smoker complaining that not smoking is not as good as the law letting you smoke wherever you want.
I get that a lot of people don't like sharing space with strangers, when crime and harassment are factors. I do think it's something that also really needs addressing on its own, but especially to make non-car transportation more attractive.
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