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The Short-Run Effects of Congestion Pricing in New York City
Starting in January 2025, New York City became the first city in the United States to introduce a fee for vehicles entering its central business district (CBD). Using Google Maps Traffic Trends, we show that the policy increased speeds in the CBD, had spillovers onto non-CBD roads, and reduced estimated vehicle emissions throughout the metro area. Relative to a set of control cities, average traffic speeds in NYC‘s CBD increased by 15% following the introduction of congestion pricing, with larger effects during the most congested hours. Roads commonly traversed on routes to the CBD before the policy have also seen an increase in speeds and a decrease in vehicle emissions. Overall, these speed changes reduced realized travel times on trips to and within the CBD by approximately 8%. Across neighborhoods, the increase in speed and decrease in estimated emissions are greatest in neighborhoods closer to the CBD, with no significant difference between neighborhoods with different income levels.
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