Just Who Should Pay for What? Vertical Equity, Transit Subsidy and Road Pricing

Document Type

Journal Article

Publication Date


Subject Area

policy - equity, policy - congestion, economics - subsidy, place - north america


equity, cross-subsidization, congestion pricing scheme, New York


In this paper, equity and cross-subsidization issues associated with the congestion pricing scheme proposed as part of New York City’s PlaNYC are examined, as are initial usage patterns, user income distribution, and revenue distribution. We find that equity concerns surrounding the proposal are supported by economic analysis. If New York City is to revisit congestion pricing in the future and make it more politically palatable, it will need to find a way to mitigate these equity concerns.


Permission to publish the abstract and link to the article has been given by Journal of Public Transportation, copyright remains with them.