Question

A growing number of large cities around the world have or are considering the introduction of congestion pricing of road transportation. New York City is one of the latest jurisdictions to consider congestion pricing with implementation scheduled for 2021. Does economic analysis favour such schemes? What effects might we expect if congestion zone pricing was instituted in Toronto? Would there be winners and losers?

Answer 1

Obviously it is a baseless formula to curb from the traffic problems their can be many more ways to fight such a small problem. It's effect on the economy would not be justified part, its burden is to be suffered by a lot of people, who may not be suffered with it.

Let's see what effect would it put over people and economy, congestion pricing is taxing a specific person who is entering a specific area. This will be a very specific burden over the people who are living in the area or are the daily routers, instead what can be done is to make a local route for the localites and open the restricted area for all. This congestion price would be a factor in increasing the inflation level, because all the local service providers who are providing their services through these roads their costs will include these congestion taxes as well and the prices or their services will increase accordingly, So this will be a specific burden area. Which is economically unhealthy.

Yes, As I have mentioned that there will be a specific burden area then their will be the winner and losers formula as well, who all are paying and who are not paying.