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Transportation Funding & Financing

Cordon Pricing

Cordon pricing is a state or locally imposed charge on drivers to access a cordoned areas through tolls at certain boundaries or through the sale of passes to drive in the cordoned area. While the principal function of cordon pricing is to manage demand and reduce congestion during peak hours, it also generates revenues. These fees typically apply to the central business district of a municipality. While these fees have not been used in the United States, they have been successful in Europe and in Singapore in reducing downtown congestion. A proposal to institute cordon (congestion) pricing in Manhattan (New York City) failed to be implemented in 2008 because it did not gain the approval of the State Legislature.