International Journal of Transportation Engineering

International Journal of Transportation Engineering

An Economic Analysis of Cordon Pricing (Case study: New York City CBD)

Document Type : Research Paper

Authors
Amirhossein Baghestani
Rozhin Borhani
Faculty of Civil, Water, and Environmental Engineering, Shahid Beheshti University, Tehran, Iran
10.22119/ijte.2025.508635.1688
Abstract
Cordon pricing has emerged as a critical Transportation Demand Management (TDM) strategy aimed at reducing traffic congestion, improving air quality, and generating revenue for sustainable transportation investments. This study evaluates the economic impacts of implementing a cordon pricing scheme in New York City’s Central Business District (CBD), where chronic congestion imposes significant economic and environmental costs. Using the New York Best Practice Model (NYBPM), we analyze two pricing scenarios—High-Toll ($20), and Low-Toll ($5)—to assess their effects on traffic flow, emissions, and economic outcomes. The findings demonstrate that cordon pricing generates substantial economic advantages by quantifying benefits through the Value of Time (VOT) and the traffic-weighted emission factor. One major benefit stems from the annual decrease in Vehicle Hours of Delay (VHD), while the other results from reduced emissions, both of which yield significant financial gains. By providing a data-driven evaluation of these economic outcomes, this research highlights the potential of cordon pricing as a strategic policy tool that balances financial efficiency, environmental responsibility, and equitable urban mobility planning.
Keywords
Economic Analysis
Cordon Pricing
Value of Time
Vehicle Hours of Delay
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International Journal of Transportation Engineering
Volume 13, Issue 1 - Serial Number 49
Summer 2025
Pages 2103-2117