The equity considerations of Congestion Pricing

Getting stuck in traffic is fast becoming one of those necessary evils that everyone complains about but seldom does anything about it. Or at least anything that seems terribly effective. Neither additional road building nor public transit seemed to have had a major impact on traffic congestion in places where these types of remedies have been attempted.

3 minute read

April 5, 2007, 9:54 AM PDT

By Lance Freeman


Getting stuck in traffic is fast becoming one of those necessary evils that everyone complains about but seldom does anything about it. Or at least anything that seems terribly effective. Neither additional road building nor public transit seemed to have had a major impact on traffic congestion in places where these types of remedies have been attempted.

But there's no lack of ideas on how to solve the problem of congestion. Congestion pricing has been held up by some planners and economists as the closest thing to a panacea for solving our traffic woes. In the view of advocates of congestion pricing, congestion is caused because travel on the most congested roads is too cheap-it's free. Without prices to tell drivers how much they should drive, they drive too much, or at least at the wrong times. With congestion pricing, drivers would have to pay tolls to drive at the most congested times, say rush hour, and in the most congested places, perhaps in the central business district or on heavily traveled highways. The tolls, if calibrated correctly, would discourage some drivers from driving on the most congested roads and at the most congested times. Voila! Congestion would be reduced considerably.

I'm not going to argue about the efficacy of congestion pricing for reducing traffic. As one would expect, when the price of something rises, consumption decreases. Studies have generally found that congestion pricing does reduce traffic. Congestion pricing, however, raises some serious equity issues. Problems severe enough that I suggest we not adopt congestion pricing unless they can be addressed.

Congestion pricing makes explicit the cost of driving on a heavily traveled roads and this is its' strength. Drivers are forced to take into consideration the cost they impose on others when they decide to drive, a cost that is easier to ignore when the roads are free. Congestion pricing is a regressive public charge, however, because the charges in no way take account of the driver's ability to pay. Congestion pricing might lead to a two tiered road network where with those with the means cruise about whenever and wherever they want, whereas the poor might be forced to take back roads or travel off peak.

But charging people on other transits modes is common and also regressive. Airlines and commuter rail lines typically charge higher price during peak travel times. Why should equity concerns be allowed to derail a strategy that could go along way toward reliving traffic congestion?

Well unlike airline travel, driving is a lot less discretionary for most folks. Most of us simply have to drive to get to work, to shop, etc. Congestion pricing would presumably push off the road those who don't have to be there. But what about those who have to drive on certain routes at certain times? Congestion pricing would be a real burden for poorer folks in these who lack flexibility in choosing their driving times and routes.

Congestion pricing also makes an incremental contribution to the effects of increasing wealth stratification of American society. For the past few decades income and wealth inequality have been increasing in America. In a society where relatively few resources like health care or access to good schools is allocated by the market, the trend of increasing wealth inequality is less troubling. But in the US we rely heavily on the market to allocate resources. Access to good neighborhoods, schools, and health care, for example, are increasingly tied to one's economic standing.

Congestion pricing would render everyday driving as one more part of life that is dependent upon one's economic standing. In a society where inequality is growing doing we really want to reinforce the impacts of this trend?


Lance Freeman

Lance Freeman is an associate professor in the Urban Planning program at Columbia University in New York City where he teaches courses on housing policy and research methods. He has also taught in the School of Urban Affairs and Public Policy at the University of Delaware. Prior to this, Dr. Freeman worked as a researcher at Mathematica Policy Research, a leading social policy research firm in Washington D.C. Dr. Freeman holds a Masters degree and a Ph.D. in City and Regional Planning from the University of North Carolina at Chapel Hill. Dr.

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Write for Planetizen

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.