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Effects of congestion surcharges: From ridership to competition and safety

Bryan Weber, Ali Moghtaderi and Paolo Cappellari

Economics of Transportation, 2025, vol. 43, issue C

Abstract: This paper examines the effects of a 2019 congestion surcharge on for-hire-vehicle and taxi usage in New York City. We use a difference-in-differences method to evaluate both the change in rides during this period and the coinciding decline in pickups. We find a significant decline in rides originating from the charged area (11%), and a parallel reduction in collisions (5%), injuries (9%), and some fatalities, suggesting that the policy has successfully created the intended reduction in vehicular activity. Taxis appear to lose a larger number of rides than their competition, both in single-passenger and shared rides.

Keywords: Transportation; Rideshare; Safety; Surcharge; Congestion; Tax (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:43:y:2025:i:c:s2212012225000346

DOI: 10.1016/j.ecotra.2025.100426

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