The congestion question

Athuryann Santharuban
Insights Newsletter
22 November, 2024

This column is by the second author from our collaboration with Rototuna Junior High School's student think tank project.

Traffic congestion is one of Hamilton’s most pressing issues. This is due to rapid population growth, which, according to the council, will rise from 152,641 to 237,000 by the year 2048.

An initiative that could reduce congestion is a congestion tax. The New Zealand Initiative report Driving Change: How Road Pricing Can Improve Our Roads by Dr Matthew Birchall lays out arguments for how a congestion tax could reduce congestion.

International examples have shown that congestion taxes can work. According to Transport for London, traffic congestion decreased by 30% after a congestion tax was implemented. Similarly, Singapore's congestion decreased by 20–25% under a congestion tax.

There are challenges to implementing a congestion tax. One is potential backlash from the road users who would be paying for it.

Consultation meetings with road users to discuss proposals on the congestion tax could bring people on board. Communities should be consulted on the price of the congestion tax, as well as other aspects of its implementation. Communication with the community is important when proposing a tax like this. Emergency vehicles and public transport should be exempt from any tax.

Other initiatives to reduce congestion could be funded with the revenue from a congestion tax.

Adding bus lanes would make buses more reliable, with a greater likelihood of running on time and faster journeys, resulting in shorter wait times for passengers. If buses were more reliable and faster to reach their destinations, more people would be more inclined to use them, reducing congestion.

Another incentive to reduce congestion might be a public transport loyalty programme. The programme could offer incentives such as free rides and discounts for local businesses. The Los Angeles Metro Authority has implemented a programme like this. It has been successful and brought many new riders to public transport. Such a programme would issue rewards to users who use public transport regularly.

A loyalty program would have a dual benefit. It could benefit businesses by bringing more people to them bringing more people to public transport and reducing congestion. More successful businesses may improve Hamilton’s economic growth in the future. Again, the loyalty programme could be funded by the revenue collected from a congestion tax.

Together, these proposals could reduce traffic congestion in the growing city of Hamilton and promote eco-friendly transportation.

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