Charges for Car Externalities

Interest from state and local governments in new ways to disincentivize vehicle use is growing. In 2022, Bogotá, Colombia, piloted a project with ClearRoad, a U.S.-based transportation and technology company, that uses smartphones to monitor movement along streets within a congestion-pricing district to address the city's extensive traffic. The state of Oregon is experimenting with the OReGO road usage fee program, which charges drivers a fee based on the number of miles driven. On January 1, 2025, New York City began congestion pricing in Manhattan, aimed at reducing traffic and related pollution while funding public transit improvements. Early results include faster vehicle speeds and reduced travel times and vehicle emissions in the congestion-pricing district, along with $216 million raised in revenue for the Metropolitan Transit Agency in the first four months, though ongoing legal battles over the Trump administration's efforts to end the program have made its fate uncertain.

Some cities are adopting new fees based on different negative impacts associated with cars. In the U.K., London and other cities are implementing emission-based parking charges to tackle traffic-related air pollution. Lyon, France, has adapted parking fees to increase with vehicle weight, to discourage larger cars that tend to produce more pollution, require more parking space, and pose significant traffic safety concerns from entering the city. In the U.S., legislative bills related to fees based on vehicle weight have been discussed in California and Colorado. Planners should be aware of various programs being piloted in other cities and consider whether they could help solve problems of congestion and pollution in their communities. To further explore this topic, watch APA's Passport course, Congestion Pricing: Challenges & Opportunities.