Myth 5: Cars already pay their fair share and aren't subsidized
It's mind-boggling how common this one is given how totally false, but systems of accounting makes it easy. It's used as a justification for "Why use congestion charge to fund transit which loses money?".
In reality, cars are heavily subsidized, especially in New York City.
* I estimate the value of roadway below 60th St at 100 mil sq ft. (seems like a lot, but only 4 sq miles.). But at $2,000/sq ft, 100 mil sq ft is worth $200 billion. At 5% interest/land rent equivalence, that single implicit subsidy is worth $10 billion per year. MTA has to pay for land when it buys it and keep it on the balance sheet.
* The health effects of vehicle emissions. I'm not qualified to put a number on this. Across a wider area like New York though this has been estimated at $20 billion/year.
* Noise pollution costs. The ratio of bad reasons compared to good reasons for honking in NYC is incredibly high. Sirens run for longer because they are stuck in traffic.
It's a myth to consider the $3 billion / yr budget for capital and operations for roadways in NYC as being a complete accounting of the public costs of vehicle use. That's really only a fraction of the cost if it received none of the implicit subsidies.
Gasoline taxes for NY State ($1 billion/yr) aren't even enough to pay for the explicit spending by the city, much less enough to pay for the much larger hidden subsidies.
You Gotta be kidding me don’t you realize that prices for food clothing anything below 68th St. is going to go up up up the consumer is the one who pays it seems to be a person from La La Land. I’ll tell you being handicapped in the city is no fun and when you live in a transportation dead zone, it’s even worse, and then you’re going to have congestion pricing and this is going to add funds to other areas. It’s a cash grab.
Congestion pricing will have a negative impact on some seniors, who like me, have physical issues that rule out biking, limit walking, and make it difficult to use subways due to the stairs and elevators/escalators not always working. My main bus line, the 103, is poorly scheduled so the waiting times in cold and/or wet weather are a problem. I don't have a car but will miss friends driving me home which they'll no longer be able to afford due to congestion pricing fee. And my daughter and grandson who drive in from Orange County and NJ to see me may now visit less due to the fees. At least the congestion fees shouldn't apply after 7 or 8pm and not at all on weekends.
Myth 5: Cars already pay their fair share and aren't subsidized
It's mind-boggling how common this one is given how totally false, but systems of accounting makes it easy. It's used as a justification for "Why use congestion charge to fund transit which loses money?".
In reality, cars are heavily subsidized, especially in New York City.
* I estimate the value of roadway below 60th St at 100 mil sq ft. (seems like a lot, but only 4 sq miles.). But at $2,000/sq ft, 100 mil sq ft is worth $200 billion. At 5% interest/land rent equivalence, that single implicit subsidy is worth $10 billion per year. MTA has to pay for land when it buys it and keep it on the balance sheet.
* The health effects of vehicle emissions. I'm not qualified to put a number on this. Across a wider area like New York though this has been estimated at $20 billion/year.
* Noise pollution costs. The ratio of bad reasons compared to good reasons for honking in NYC is incredibly high. Sirens run for longer because they are stuck in traffic.
It's a myth to consider the $3 billion / yr budget for capital and operations for roadways in NYC as being a complete accounting of the public costs of vehicle use. That's really only a fraction of the cost if it received none of the implicit subsidies.
Gasoline taxes for NY State ($1 billion/yr) aren't even enough to pay for the explicit spending by the city, much less enough to pay for the much larger hidden subsidies.
Great addition! Mind if I update my post to include a summary of this?
Absolutely!
Fantastic article Sam.
For the FDNY mention I think you meant to link here? https://nyc.streetsblog.org/2019/09/19/fdny-traffic-not-bike-lanes-is-to-blame-for-increased-response-times
Haha yup that's the exact article - great catch, thank you!
Winner 7: The Economy.
Oh 100%. I thought it made more sense as a "debunk" but you're totally right - it's great for the economy.
You Gotta be kidding me don’t you realize that prices for food clothing anything below 68th St. is going to go up up up the consumer is the one who pays it seems to be a person from La La Land. I’ll tell you being handicapped in the city is no fun and when you live in a transportation dead zone, it’s even worse, and then you’re going to have congestion pricing and this is going to add funds to other areas. It’s a cash grab.
Lower Manhattan is not a transportation dead zone lol get a grip
Congestion pricing will have a negative impact on some seniors, who like me, have physical issues that rule out biking, limit walking, and make it difficult to use subways due to the stairs and elevators/escalators not always working. My main bus line, the 103, is poorly scheduled so the waiting times in cold and/or wet weather are a problem. I don't have a car but will miss friends driving me home which they'll no longer be able to afford due to congestion pricing fee. And my daughter and grandson who drive in from Orange County and NJ to see me may now visit less due to the fees. At least the congestion fees shouldn't apply after 7 or 8pm and not at all on weekends.