I purposely titled this post to include the word ‘idea’ as congestion pricing is still very much like that in the Philippines. It is a reality in some part of the world particularly in Singapore where its Electronic Road Pricing (ERP) has evolved and improved over the years. Its success though seems to be an exceptional case that has not been replicated elsewhere where conditions are not exactly like the city state’s.

Here is an article that recently came out from The Washington Post about the New York Governor’s decision to backtrack on the proposed congestion pricing initiative in New York City:

McArdle, M. (June 12, 2024) “People hate traffic. They also hate this great idea to clear it,” The Washington Post, https://www.washingtonpost.com/opinions/2024/06/12/congestion-pricing-great-idea-people-hate/ [Last accessed: 6/14/2024]

To quote from the article:

“Roads are a scarce good; you can fit only so many cars on a road at one time, and fewer if you would like those cars to go somewhere. When roads are “free,” we are forced to fall back on a more costly and inefficient strategy: sitting in traffic. This wastes valuable human time and inflicts noise and pollution on everyone nearby. Far better to charge a modest price that inspires some drivers to carpool and others to take public transit or shop nearer to home, until supply and demand are balanced and traffic flows easily…

In political disputes, a discrete group facing highly concentrated costs often defeats a larger public interest that conveys a small individual benefit to everybody — such as being able to move around the city faster when you really need to. This is particularly true in the American system, which is designed to empower angry minorities. And it’s especially true when they’re abetted by status quo bias and a sympathetic majority, as in this case.

Complain all you want about selfish suburban drivers or the Metropolitan Transit Authority’s bloated cost structure or Hochul’s cowardice; the biggest obstacle to congestion pricing is that almost two-thirds of New York City residents have told pollsters they oppose it — in a city where less than half of all households even own a car. A more technocratic, less democratically responsive government might have been able to ram it through, and perhaps in time everyone would have come to like it. But in fractious America, with all its political veto points, congestion pricing is doomed by the reality that people hate slapping prices on things — especially if they have to pay them.”

There is a congestion pricing proposal in Baguio City and we don’t know yet how this will go. I don’t have the details yet except that a private company whose core business is tollways is involved. Will this be a model or a proof of concept? Or will it just go the way of a typical tollway where users are those who are willing to pay and which would eventually congest if most of the current users pay and use it anyway? Will the funds generated be used to develop a more efficient transport system for Baguio, eventually leading and contributing to less congested streets? That would also mean eventually less revenues from the congestion pricing scheme and probably lead to it being unnecessary.

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