Effects of congestion surcharges: From ridership to competition and safety

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.