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Alternatives to Congestion Pricing

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    Rationing

    • One alternative to congestion pricing is rationing. In rationing, travel would be restricted in certain areas or at certain times of day by license plate numbers or some other objective variable. Unlike congestion pricing, which is felt more by those with less expendable income, rationing is inherently fair; it requires the same sacrifice of all drivers. Further, rationing tends to be more effective. A driver can choose to travel in congested areas and simply pay the fees if the city implements congestion pricing, but if congestion rationing is in place he will be prohibited from driving in the area outside his allotted time.

    Mass Transit

    • Instead of congestion pricing, cities may consider modifying their current mass transit facilities. For instance, a city could introduce time-of-day pricing, charging less for the use of mass transit during peak hours as an incentive. While a city's mass transit system has to be able to accommodate the extra riders in order for this to work, the city would have to make these improvements in mass transit to successfully adopt congestion pricing anyway, according to Ken Livingston, Lord Mayor of London, a city that has successfully implemented congestion pricing.

    Taxes

    • Rather than introduce congestion pricing, a city could simply increase taxes to deter driving in the city. This alternative to congestion pricing would mean that city residents would pay more in vehicle taxes or gasoline taxes. While the additional taxes would weigh most heavily upon lower-income families, increasing driving-related taxes does eliminate issues of privacy related to congestion pricing.

    Permits

    • Cities can avoid congestion pricing by changing the cost and availability of permits within the city. For example, a city could increase the cost of city parking permits or make such permits available only to city residents. Similarly, a city could introduce permit restrictions, such as prohibiting delivery vehicles in congested areas during peak hours or requiring that cars for hire, such as taxis, only be engaged via taxi stand.

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