Something that's often left out in all this talk about the failure of New York City's congestion pricing plan is the fact that this sort of plan has already been successfully implemented in London, as mayor Ken Livingstone has attested:
It cut the amount of traffic entering central London by 20%. Each day in 2006, there are were almost 70,000 fewer vehicles entering the charging zone compared to the number that had been entering each day before charging began.
The figures following the extension of the zone westwards show that it is also operating at the expected level. Traffic in the area of the western extension of the zone is down 13%, right in the middle of the 10-15% reduction that had been predicted. And since the extension, traffic in the old congestion charging area has not risen at all - an even better result than anticipated.
It's also been successful in getting more people on bikes and public transit:
In addition, road safety has improved, CO2 emissions have been cut, and congestion charging contributed to the growth of cycling with more people than ever before traveling by bike - a 72% increase in the number of cyclists on the capital's major roads since 2000.
Naturally, all these benefits were not only brought by congestion charging itself but by the public transport measures that accompanied it. Bus ridership in London has risen by 2 million a day, and the city has embarked on the largest programme of public investment in transport for 50 years.
Mind you, it was also wildly unpopular there at first as well. But, like many other things, once people start reaping the benefits of the plan, it has become much more appreciated. I'd also like to second Scott's point the congestion pricing plan generally stands to help lower income residents in the long run, as most don't have cars, don't drive, and are more likely than wealthy residents to use public transit. An improved public transit system would help them greatly. That said, I'm also in agreement that drivers of inefficient vehicles should be charged more, as Dana noted. Which is exactly what London did. After initiating the plan in 2003, the city strengthened the plan by tripling the fee drivers of the most-polluting vehicles have to pay to from about $16 to $49, effective this October. So it takes convincing the public and legislators of its benefit first, getting it passed, and then making improvements to the plan to really see progress.
--Kate Sheppard