New York City just introduced congestion pricing. Why some experts say it could work in Metro Vancouver

TransLink is facing a $600 million operating deficit by 2026, but transit experts say the shortfall could be offset by introducing congestion pricing in Metro Vancouver — an effort currently underway in New York City that's showing some promising results.

Congestion pricing, or mobility pricing, is a policy aimed at reducing traffic and pollution by charging drivers to use the roads. On Jan. 5, New York City became the latest metropolitan hub to introduce a road pricing program by charging drivers up to $9 US to enter Manhattan south of Central Park during peak hours. The city intends to reinvest the dollars generated into transit infrastructure.

After the first week, total traffic in the tolling zone dropped by 7.5 per cent — or roughly 43,000 cars a day — compared to the equivalent period last year, officials for the Metropolitan Transportation Authority said.

"It's too early to say what the situation is in New York City, but the early results are promising — reductions in vehicle movements, reductions in travel time, and that's not only for cars but also buses which share the roads with cars, some increase in rail transit, and reductions in pollution," said Robin Lindsey, a professor emeritus at UBC's Sauder School of Business.

At a TransLink capital funding announcement on Monday,  CEO Kevin Quinn said despite developments in New York, there's still little regional support for such a program in Metro Vancouver.

"There's no plans right now to institute mobility pricing in this region at this time, it's not supported by the Mayors' Council," said Quinn.

"I think folks are closely watching what's happening in New York as they've implemented that, but as of right now, that's not a solution that's on the table."

According to the Tomtom Traffic Index, Vancouver has the second-worst traffic congestion in North America — second to New York City.

TransLink woes

Last year, TransLink announced it's grappling with a projected $600 million budget shortfall, suggesting that transit cuts would be necessary if a new funding model wasn't in place by the end of 2025. It says traditional funding sources, including fuel taxes, have been declining each year.

Recent funding from Ottawa is dedicated to capital projects, including upgrades to current infrastructure for the transit provider, not to meet operational shortfalls.

According to a report to the Mayors' Council, budget constraints could mean cutting bus service in half, reducing SkyTrain and SeaBus trips by up to one-third, and potentially eliminating the West Coast Express commuter service.

TransLink says it's working with all levels of government to find a new funding model that would avoid service cuts.

The case for congestion pricing

According to a 2018 study commissioned by TransLink and the Mayors' Council, mobility pricing models charging drivers anywhere from $3 to $8 per day could generate between $1 billion and $1.6 billion annually and reduce congestion by 20 to 25 per cent.

"You could look at a billion dollars in revenue from that, which would cover off not just the current acute funding crisis, but also the expansion," said David Cooper, a principal at Leading Mobility Consulting and a former TransLink manager.

"We have a lot of desire to extend the SkyTrain out to UBC; there's desire to connect the North Shore to rapid transit," said Cooper.

WATCH | Could congestion pricing help fund transit? 

Is congestion pricing the answer to North America's transit funding crunch?

1 day ago

Duration 11:43

Lawrence Frank, an urban studies professor at the University of California San Diego, says that Vancouver could take the lead on congestion pricing given its past leadership on sustainable development. Frank discussed solutions to ongoing funding challenges for transit systems across North America on CBC's On the Coast.

Proponents say the most challenging barrier remains political will. In 2022, Vancouver's city council voted to discontinue plans to consider mobility pricing for the city's core.

Vancouver Coun. Mike Klassen says there was little public support, and the city is instead considering projects like road widening and bike lanes to ease congestion.

WATCH | TransLink balks at idea of congestion funding: 

TransLink balks at congestion pricing to meet funding shortfall, despite success in other cities

21 hours ago

Duration 2:25

TransLink says it desperately needs a new funding model to make up for a $600 million budget shortfall. Other large cities like New York and London have instituted congestion pricing to improve their transit systems. But as CBC’s Jon Hernandez reports, TransLink says it isn’t yet interested in that solution.

Congestion pricing advocate Nate Wallace with Environmental Defence says people often grow to support mobility pricing once they see the results.

"People oppose it before it's introduced because they think it's a tax on going to work," "but after it's implemented, support dramatically rises because they're saying maybe I'm paying $5 to $10 for this congestion charge, but my commute just got slashed in half."

"If politicians are wary of going down that road, we still need to fund these critical services like transit."