Category: Cars

The Future of Congestion Pricing in New York

New York just passed congestion pricing, to begin operation on June 30th. The magazine Vital City published an issue dedicated to this policy two days ago; among the articles about it is one by me, about public transportation investments. People should read the entire article; here I’d like to both give more context and discuss some of the other articles in the issue. Much of this comes from what I said to editor Josh Greenman when discussing the pitch for the piece, and how I interpret the other pieces in the same context. The most basic point, for me, is that what matters is if the overall quality of public transit in and around New York is seen to improve in the next 5-10 years. In particular, if congestion pricing is paired with one specific thing (such as a new subway line) and it improves but the rest of the system is seen to decline, then it will not help, and instead people will be cynical about government actions like this and come to oppose further programs and even call for repealing the congestion tax.

The other articles in the issue

There are 10 articles in this issue. One is my own. Another is by Josh, explaining the background to congestion pricing and setting up the other nine articles. The other eight were written by John Surico, Sam Schwartz, Becca Baird-Remba, Austin Celestin, Howard Yaruss, Nicole Gelinas, Vishaan Chakrabarti, and Henry Grabar, and I recommend that people read all of them, for different perspectives.

The general themes the nine of us have covered, not all equally, include,

  • How to use congestion pricing to improve transportation alternatives (me on transit investment, Yaruss on transit fare cuts, Nicole and Chakrabarti on active transportation, Henry on removing parking to improve pedestrian safety).
  • The unpopularity of congestion pricing and what it portends (Surico about polling, Becca about business group opposition, Schwartz on political risk, Yaruss again on why the fare cut is wise); of note, none of the authors are coming out against congestion pricing, just warning that it will need to deliver tangible benefits to remain popular, and Surico is making the point that in London and Stockholm, congestion pricing was unpopular until it took effect, after which it was popular enough that new center-right leadership did not repeal it.
  • Environmental justice issues (Becca and Celestin): my article points out that traffic levels fell within the London congestion zone but not outside it, and Becca and Celestin both point out that the projections in New York are for traffic levels outside the zone not to improve and possibly to worsen, in particular in asthma-stricken Upper Manhattan and the Bronx, Celestin going more deeply into this point and correctly lamenting that not enough transit improvements are intended to go into these areas. The only things I can add to this are that for environmental justice, two good investment targets include a 125th Street subway tunnel extending Second Avenue Subway and battery-electric buses at depots to reduce pollution.
  • Problems with toll evasion (Schwartz and Yaruss): there’s a growing trend of intentional defacement of license plates by the cars’ own drivers, to make them unreadable by traffic camera and avoid paying tolls, which could complicate revenue collection under congestion pricing.

The need for broad success

When discussing my article with Josh, before I wrote it, we talked about the idea of connecting congestion pricing to specific improvements. My lane would be specific transit improvements, like new lines, elevator access at existing stations, and so on, and similarly, Nicole, Henry, Chakrabarti, and Yaruss proposed their own points. But at the same time, it’s not possible to just make one thing work and say “this was funded by congestion pricing.” The entire system has to both be better and look better, the latter since visible revenue collection by the state like congestion pricing or new taxes are always on the chopping block for populist politicians if the state is too unpopular.

The example I gave Josh when we talked was the TGV. The TGV is a clear success as transportation; it is also, unlike congestion pricing, politically safe, in the sense that nobody seriously proposes eliminating it or slowing it down, and the only controversy is about the construction of new, financially marginal lines augmenting the core lilnes. However, the success of the TGV has not prevented populists and people who generally mistrust the state from claiming that things are actually bad; in France, they are often animated by New Left nostalgia for when they could ride slow, cheap trains everywhere, and since they were young then, the long trip times and wait times didn’t matter to them. Such nostalgics complain that regional trains, connecting city pairs where the train has not been competitive with cars since mass motorization and only survived so long as people were too poor to afford cars, are getting worse. Even though ridership in France is up, this specific use case (which by the 1980s was already moribund) is down, leading to mistrust. Unfortunately, while the TGV is politically safe in France, this corner case is used by German rail advocates to argue against the construction of a connected high-speed rail network here, as those corner case trains are better in Germany (while still not carrying much traffic).

The most important conclusion of the story of the TGV is that France needs to keep its high-speed system but adopt German operations, just as Germany needs to adopt French high-speed rail. But in the case of New York, the important lesson to extract is that if the MTA does one thing that I or Nicole or Henry or Chakrabarti or Yaruss called for while neglecting the broad system, people will not be happy. If the MTA builds subway lines with the projected $1 billion a year in revenue, politicians will say “this subway line has been built with congestion pricing revenue,” and then riders will see declines in reliability, frequency, speed, and cleanliness elsewhere and learn to be cynical of the state and oppose further support for the state’s transit operations.

The MTA could split the difference among what we propose. As I mentioned above, I find Celestin’s points about environmental justice compelling, and want to see improvements including new subways in at-risk areas, bus depot electrification to reduce pollution, and commuter rail improvements making it usable by city residents and not just suburbanites (Celestin mentions frequency; to that I’ll add fare integration). Nicole, Henry, and Chakrabarti are proposing street space reallocation, which doesn’t cost much money, but does cost political capital and requires the public to be broadly trusting of the state’s promises on transportation. The problem with doing an all-of-the-above program is that at the end of the day, projected congestion pricing revenue is $1 billion a year and the MTA capital program is $11 billion a year; the new revenue is secondary, and my usual bête noire, construction costs, is primary.

Trucking and Grocery Prices

In dedication to people who argue in favor of urban motorways on the grounds that they’re necessary for truck access and cheap consumer goods, here are, at the same scale, the motorway networks of New York, London, Paris, and Berlin. While perusing these maps, note that grocery prices in New York are significantly higher than in its European counterparts. Boston is included as well, for an example of an American city with fewer inherent access issues coming from wide rivers with few bridges; grocery prices in Boston are lower than in New York but higher than in Paris and Berlin (I don’t remember how London compares).

The maps

The scale isn’t exactly the same – it’s all sampled from the same zoom level on OpenStreetMaps; New York is at 40° 45′ N and Berlin is at 52° 30′ N, so technically the Berlin map is at a 1.25 times closer zoom level than the New York map, and the others are in between. But it’s close. Motorways are in red; the Périphérique, delineating the boundary between Paris and its suburbs, is a full freeway, but is inconsistently depicted in red, since it gives right-of-way to entering over through-traffic, typical for regular roads but not of freeways, even though otherwise it is built to freeway standards.

Discussion

The Périphérique is at city limits; within it, 2.1 million people live, and 1.9 million work, representing 32% of Ile-de-France’s total as of 2020. There are no motorways within this zone; there were a few but they have been boulevardized under the mayoralty of Anne Hidalgo, and simultaneously, at-grade arterial roads have had lanes reduced to make room for bike lanes, sidewalk expansion, and pedestrian plazas. Berlin Greens love to negatively contrast the city with Paris, since Berlin is slowly expanding the A100 Autobahn counterclockwise along the Ring (in the above map, the Ring is in black; the under-construction 16th segment of A100 is from the place labeled A113 north to just short of the river), and is not narrowing boulevards to make room for bike lanes. But the A100 ring isn’t even complete, nor is there any plan to complete it; the controversial 17th segment is just a few kilometers across the river. On net, the Autobahn network here is smaller than in Ile-de-France, and looks similar in size per capita. London is even more under-freewayed – the M25 ring encloses nearly the entire city, population 8.8 million, and within it are only a handful of radial motorways, none penetrating into Central London.

The contrast with American cities is stark. New York is, by American standards, under-freewayed, legacy of early freeway revolts going back to the 1950s and the opposition to the Lower Manhattan Expressway, which would have connected the Holland Tunnel with the Manhattan and Williamsburg Bridges; see map here. There’s practically no penetration into Manhattan, just stub connections to the bridges and tunnels. But Manhattan is not 2.1 million people but 1.6 million – and we should probably subtract Washington Heights (200,000 people in CB 12) since it is crossed by a freeway or even all of Upper Manhattan (650,000 in CBs 9-12). Immediately outside Manhattan, there are ample freeways, crossing close-in neighborhoods in Brooklyn, Queens, the South Bronx, and Jersey City. The city is not automobile-friendly, but it has considerably more car and truck capacity than its European counterparts. Boston, with a less anti-freeway history than New York, has penetration all the way to Downtown Boston, with the Central Artery, now the Big Dig, having all-controlled-access through-connections to points north, west, and south.

Grocery prices

Americans who defend the status quo of urban freeways keep asking about truck access; this played a role in the debate over what to do about the Brooklyn-Queens Expressway’s Downtown Brooklyn section. Against shutting it down, some New Yorkers said, there is the issue of the heavy truck traffic, and where it would go. This then led to American triumphalism about how truck access is important for cheap groceries and other goods, to avoid urban traffic.

And that argument does not survive a trip to a New York (or other urban American) supermarket and another trip to a German or French one. German supermarkets are famously cheap, and have been entering the UK and US, where their greater efficiency in delivering goods has put pressure on local competitors. Walmart, as famously inexpensive as Aldi and Lidl (and generally unavailable in large cities), has had to lower prices to compete. Carrefour and Casino do not operate in the US or UK, and my impression of American urbanists is that they stereotype Carrefour as expensive because they associate it with their expensive French vacations, but outside cities they are French-speaking Walmarts, and even in Paris their prices, while higher, are not much higher than those of German chains in Germany and are much lower than anything available in New York.

While the UK has not given the world any discount retailer like Walmart, Carrefour, or Lidl, its own prices are distinctly lower than in the US, at least as far as the cities are concerned. UK wages are infamously lower than US wages these days, but the UK has such high interregional inequality that wages in London, where the comparison was made, are not too different from wages in New York, especially for people who are not working in tech or other high-wage fields (see national inequality numbers here). In Germany, where inequality is similar to that of the UK or a tad lower, and average wages are higher, I’ve seen Aldi advertise 20€/hour positions; the cookies and cottage cheese that I buy are 1€ per pack where a New York supermarket would charge maybe $3 for a comparable product.

Retail and freight

Retail is a labor-intensive industry. Its costs are dominated by the wages and benefits of the employees. Both the overall profit margins and the operating income per employee are low; increases in wages are visible in prices. If the delivery trucks get stuck in traffic, are charged a congestion tax, have restricted delivery hours, or otherwise have to deal with any of the consequences of urban anti-car policy, the impact on retail efficiency is low.

The connection between automobility and cheap retail is not that auto-oriented cities have an easier time providing cheap goods; Boston is rather auto-oriented by European standards and has expensive retail and the same is true of the other secondary transit cities of the United States. Rather, it’s that postwar innovations in retail efficiency have included, among other things, adapting to new mass motorization, through the invention of the hypermarket by Walmart and Carrefour. But the main innovation is not the car, but rather the idea of buying in bulk to reduce prices; Aldi achieves the same bulk buying with smaller stores, through using off-brand private labels. In the American context, Walmart and other discount retailers have with few exceptions not bothered providing urban-scale stores, because in a country with, as of 2019, a 90% car modal split and a 9% transit-and-active-transportation modal split for people not working from home, it’s more convenient to just ignore the small urban patches that have other transportation needs. In France and Germany, equally cheap discounters do go after the urban market – New York groceries are dominated by high-cost local and regional chains, Paris and Berlin ones are dominated by the same national chains that sell in periurban areas – and offer low-cost goods.

The upshot is that a city can engage in the same anti-car urban policies as Paris and not at all see this in retail prices. This is especially remarkable since Paris’s policies do not include congestion pricing – Hidalgo is of the opinion that rationing road space through prices is too neoliberal; normally, congestion pricing regimes remove cars used by commuters and marginal non-commute personal trips, whereas commercial traffic happily pays a few pounds to get there faster. Even with the sort of anti-car policies that disproportionately hurt commercial traffic more than congestion pricing, Paris has significantly cheaper retail than New York (or Boston, San Francisco, etc.).

And Berlin, for all of its urbanist cultural cringe toward Paris, needs to be classified alongside Paris and not alongside American cities. The city does not have a large motorway network, and its inner-urban neighborhoods are not fast drive-throughs. And yet in the center of the city, next to pedestrian plazas, retailers like Edeka and Kaufland charge 1€ for items that New York chains outside Manhattan sell for $2.5-4. Urban-scale retail deliveries are that unimportant to the retail industry.

The United States Has Too Few Road Tunnels

The Francis Scott Key Bridge in Baltimore collapsed after a drifting freighter hit one of its supports; so far, six people are presumed dead. Immediately after the disaster, people were asking if it could be prevented, and it became clear that it is not possible to build a bridge anchor that can withstand the impact of a modern ship, even at low speed. However, it was then pointed out to me on Mastodon that it’s not normal in Europe to have such a bridge over a shipping channel; instead, roads go in tunnel. I started looking, and got to a place that connects my interest in construction costs with that of cross-cultural learning. Europe has far more road tunneling than the US does, thanks to the lower construction costs here; it also has better harmonization of regulations of what can go in tunnels and what cannot. The bridge collapse is a corner case of where the American system fails – it’s a once in several decades event – but it does showcase deep problems with building infrastructure.

Road tunnels

The United States has very little road tunneling for its size. This list has a lot of dead links and out of date numbers, but in the US, the FHWA has a current database in which the tunnels sum to 220 km. Germany had 150 km in 1999, and has tendered about 170 km of new tunnel since 2000 of which only 48 are still under construction. France has 238 km of road tunnel; the two longest and the 10th longest, totaling 28 km, cross the Alpine border with Italy, but even excluding those, 210 is almost as much as the US on one fifth the population. Italy of course has more tunneling, as can be expected from its topography, but France (ex-borders) and Germany are not more mountainous than the US, do not have fjords and skerries like Norway, and don’t even have rias like Chesapeake Bay and the Lower Hudson. Japan, with its mountainous island geography, has around 5,000 km of road tunnel.

The United States builds so few tunnels that it’s hard to create any large database of American road tunnels and their costs. Moreover, it has even fewer urban road tunnels, and the few it does have, like the Big Dig and more recently the Alaskan Way Viaduct replacement tunnel, have become bywords for extreme costs, creating distaste even among pro-highway urban politicians for more and leading to project cancellations. With that in mind, the State Route 99 tunnel replacing the Alaskan Way Viaduct is 3 km long and cost $2.15 billion in 2009-19, which is $2.77 billion in 2023 dollars and $920 million/km, with just four lanes, two in each direction.

In Europe, this is not at all an exhaustive database; it represents where I’ve lived and what I’ve studied, but these are all complex urban tunnels in dense environments:

  • Stockholm: the six-lane Förbifart Stockholm project to build long bypass roads in Stockholm using congestion pricing money, after acrimonious political debates over how to allocate the money between roads and public transport, comprises 17 km of tunnel (plus 4 km above-ground) including underwater segments, for an updated cost of 51.5 billion kronor in 2021 prices, or $6.97 billion in 2023 PPPs, or $410 million/km. The project is well underway and its current cost represents a large overrun over the original estimate.
  • Paris: the four-lane A86 ring road was completed in 2011 with 15.5 km of new tunnel, including 10 in a duplex tunnel, at a cost of 2.2 billion €. I’ve seen sources saying that the cost applies only to the duplex section, but the EIB claims 1.7 billion € for the duplex. Physical construction was done 2005-7; deflating from 2006 prices, this is $4.18 billion in 2023 PPPs, or $270 million/km. This is a tunnel with atypically restricted clearances – commercial vehicles are entirely banned, as are vehicles running on compressed natural gas, due to fire concerns after the Mont-Blanc Tunnel fire.
  • Berlin: the four-lane 2.4 km long Tunnel Tiergarten Spreebogen (TTS) project was dug 2002-4, for 390 million €, or $790 million in 2023 PPPs and $330 million/km. This tunnel goes under the river and under the contemporarily built Berlin Hauptbahnhof urban renewal but also under a park. The controversial A100 17th segment plan comprises 4.1 km of which 2.7 are to be in tunnel, officially for 800 million € but that estimate is out of date and a rougher but more current estimate is 1 billion €. The exchange rate value of the euro today belies how much stronger it is in PPP terms: this is $1.45 billion, or $537 million/km if we assume the above-ground section is free, somewhat less if we cost it too. The 17th segment tunnel is, I believe, to have six lanes; the under-construction 16th segment has six lanes.

Crossing shipping channels

The busiest container ports in Europe are, by far, Rotterdam, Antwerp, and Hamburg, in this order. Rotterdam and Antwerp do not, as far as I’ve been able to tell from Google Earth tourism, have any road bridge over the shipping channels. Hamburg has one, the Köhlbrandbrücke (anchored on land, not water), on the way to one of the container berths, and some movable bridges like the Kattwykbrücke on the way to other berths – and there are plans to replace this with a new crossing, by bridge, with higher clearance below, with a tunnel elsewhere on the route. The next tranche of European ports are generally coastal – Le Havre, Bremerhaven, Valencia, Algeciras, Piraeus, Constanța – so it is not surprising the shipping channels are bridge-free; but Rotterdam, Antwerp, and Hamburg, are all on rivers, crossed by tunnel.

American ports usually have bridges over shipping channels, even when they are next to the ocean, as at the Ports of Los Angeles and Long Beach. This is not universal – crossings in Hampton Roads have tunnels – but it’s the trend. Of note, the US does occasionally tunnel under deep channels (again, Hampton Roads); that the Netherlands tunnels in Rotterdam is especially remarkable given how Holland is a floodplain with very difficult tunnel construction in alluvial soil.

Hazardous material regulations

Tunnels do not permit all traffic, due to fire risk. For example, the Mont-Blanc Tunnel requires vehicles heavier than 3.5 tons to undergo a safety inspection before entering to ensure they don’t carry prohibited dangerous goods. In Europe, this is governed by the ADR; all European countries are party to it, even ones not in the EU, and so are some non-European ones. Tunnels can be classified locally between A (no restrictions) and E (most restrictive).

The United States is not party to the ADR. It has its own set of regulations for transportation of hazardous materials (hazmat), with different classifications – and those differ by state. Here are the rules in Maryland. They’re restrictive enough that significant road freight had to use the Key Bridge, because the alternative routes have tunnels that it is banned from entering. Port Authority has different rules, permitting certain hazmat through the Lincoln Tunnel with an official escort. Somehow, the rules are not uniform in the United States even though it is a country and Europe is not; Russia and Ukraine may be at war with each other, but they have the same transportation of dangerous goods regulations.

The Origins of Los Angeles’s Car Culture and Weak Center

On Twitter, Armand Domalewski asks why Los Angeles is so much more auto-oriented than his city, San Francisco. Matt Yglesias responds that it’s because Los Angeles does not have a strong city center and San Francisco does. I am fairly certain that Matt is channeling a post I wrote about the subject 4.5 years ago (and insight by transit advocates that I don’t remember the source of, to the effect that the modal split for Downtown Los Angeles workers is a healthy 50%), looking at employment in these two cities’ central business districts as well as other comparison cases. In addition, Matt gives extra examples of how Los Angeles is unique in having prestige industries located outside city center: the movie studios are famously in Hollywood and not Downtown, and to that I’ll add that when I looked at high-end hotel locations in 2012, Los Angeles’s were all over the region and most concentrated on the Westside, which isn’t true of other big American coastal cities, even atypically job-sprawling Philadelphia. Because of my connection to this question, I’d like to inject some nuance.

The upshot is that Los Angeles’s car culture is clearly connected to its weak center. I wouldn’t even call it polycentric. Rather, employment there sprawls to small places, rarely even rising to the level of a recognizable edge city like Century City. It is weakly-centered, and this favors cars over public transit – public transit lives off of high-capacity, high-frequency connections, favoring places with high population density (which Los Angeles has) and high job density (which it does not), while cars prefer the opposite because excessive density with cars leads to traffic jams. However, historically, best I can tell, the weak center and the cars co-evolved – I don’t think Los Angeles was atypically weakly-centered on the eve of mass motorization, and in fact every city for which I can find such information, even model transit cities, has gotten steadily job-sprawlier in the last few generations.

How is Los Angeles weakly centered?

There are a number of ways of measuring city center dominance. My metric is the share of metro area employment that is in the central 100 km^2; some gerrymandering and water-hopping is permitted, but the 100 km^2 blob should still be a recognizable central blob rather than many disconnected islands. This is not because this is the best metric, but because my information about France and Canada is less granular than for the United States, and 100 km^2 lets me compare American cities with Vancouver and with the combination of Paris and La Défense; my data on Tokyo is of comparable granularity to Paris and this lets me pick out Central Tokyo plus some adjacent wards like Shinjuku.

As a warning, the fixed size of the central blob means that the proportion should be degressive in city size, which I notice when I compare auto-centric American metro areas of different sizes. It should also be higher all things considered in the United States, where I draw blobs on OnTheMap to capture as many jobs as possible without the blob looking like it has tendrils, than in the foreign comparisons.

I gave many examples in a Twitter thread from 2019, though not Los Angeles. Doing the same exercise for Los Angeles with 2019 data gives 1.6 million jobs in a 500 km^2 blob stretching as far as Culver City, UCLA, Downtown Burbank, and Downtown Pasadena; a 100 km^2 blob gerrymandered to just include Hollywood, West Hollywood, and Century City, none of which can reasonably be called city center, is already down to 820,000, where the roughly same-area city of San Francisco is 770,000, and more like 900,000 when taking its central 50 km^2 plus those of Oakland and Berkeley. A circle of area 100 km^2 centered on Vermont/Wilshire to include all of Downtown plus Hollywood is down to 620,000. This compares with a total of 6.5 million jobs in Los Angeles and Orange Counties, and 8.3 million including Ventura County and the Inland Empire.

The upshot is that Downtown Los Angeles is pretty big, but not relative to the size of the metro area it’s in. On an honest definition of the central business district, it is smaller in absolute job count than Downtown San Francisco, Boston (which has around 830,000), Washington (around 700,000), or Chicago (1 million), let alone New York (around 3 million) or Paris (2 million in the city and the communes comprising La Défense).

Nor are the secondary centers in Los Angeles substantial enough to make it polycentric. Downtown Burbank has around 20,000 jobs, Downtown Glendale around 50,000, Downtown Pasadena including Caltech 67,000, Century City (included in the less honest central 100 km^2) 54,000, UCLA 74,000, El Segundo 55,000, LAX 48,000, Culver City around 20,000, Downtown Long Beach around 35,000. New York, in contrast, has Downtown Newark around 60,000, the Jersey City and Hoboken waterfront around 80,000, Long Island City around 100,000, Downtown Brooklyn around 100,000 as well, Flushing 45,000. Morningside Heights has 42,000 jobs in 1 km^2, a job density that I don’t think any of Los Angeles’s secondary centers hits, and the neighborhood is not at all a pure job center. No: Los Angeles just has a weak center.

I bring up Paris as a comparison because there’s a myth on both sides of the Atlantic, peddled by European critical urbanists who think tall buildings are immoral and by American tourists whose experience of Europe is entirely within walking distance of their city center hotels, that European city centers are less dominant than American ones. But Paris has, within the same area, comfortably more jobs than the centers of Los Angeles and Chicago combined; its central-100-km^2 job share is somewhat higher than New York’s (though probably only by enough to countermand the degressivity of this measure).

Was Los Angeles always like this?

I don’t think so. My knowledge of Los Angeles history is imperfect; the closest connection I have with it is that my partner is developing a narrative video game set in 1920s Hollywood, intended to be a realistic depiction of that era. But Los Angeles as I understand it was not especially polycentric, historically.

Historically polycentric regions exist, and tend to have weaker public transit than similar-size monocentric ones. The Ruhr has several centers, each with decent urban rail within the core city and high car usage elsewhere; Upper Silesia is far more auto-oriented than similar-size metropolitan Warsaw; Randstad has rather low urban rail ridership as people bike (in the main cities) or drive (in the suburbs). All three are truly historically polycentric, having developed as different city cores merged into one metro area as mechanized transportation raised people’s commute range, and in the case of the first two, much of this history involves different coal mining sites, each its own city.

Los Angeles doesn’t really have this history. The city had a slight majority of the county’s population in 1920 (577,000/936,000) and 1930 (1,238,000/2,208,000), only falling below half in the 1940s – and in the 1920s the city was already notable for its high use of cars. The other four counties in the metro area were more or less irrelevant then – in 1920 they totaled 244,000 people, rising to 389,000 by 1930, actually less than the city. Glendale grew from 14,000 to 63,000, Long Beach from 56,000 to 142,000, Santa Ana from 15,000 to 30,000; other suburbs that are now among the largest in the country either were insignificant (Anaheim had 11,000 people in 1930) or didn’t exist (Irvine had 10,000 people in 1970).

Los Angeles did annex San Fernando Valley early, but there wasn’t much urban development there in the 1920s; Burbank, entirely contained within that region, had 17,000 people in 1930, and San Fernando had 8,000. There was a lot of suburbanization in this period, but it did not predate car culture.

This is not at all how a polycentric region’s demographic history looks – in the Rhine-Ruhr, in 1900, Dortmund and both cities that would later merge to form Wuppertal had 150,000 people, Essen had just over 100,000 and would annex to over 200,000 within five years, Duisburg and Bochum both had just less than 100,000 and would soon cross that mark, Cologne had 370,000 people.

The region had an oil-based economy at the time – in the early 20th century the center of the American oil industry was still California and not Texas – but evidently, development centered on Los Angeles and to a small extent Long Beach (in 1930 having about the same ratio of population to Los Angeles’s that the combination of Jersey City and Newark did to New York’s). The same can be said of the various beach resorts that were booming in that era – the largest, Santa Monica, had 37,000 people in 1930, 3% of the population of Los Angeles, at which point Yonkers had 2% of New York’s population.

Boomtown infrastructure

While Los Angeles did not have a polycentric history in the 1920s, it did have a noted car culture. I believe that this is the result of boomtown dynamics, visible in many places that grow suddenly, like Detroit in the same era (in the 2010s, metro Detroit had a transit modal split of about 1%, the lowest among the largest American metro areas, even less than Dallas and Houston). Infrastructure takes time and coordination to build. In a growing region, infrastructure is always a little bit behind population growth, and in a boomtown, it is far behind – who knows if the boom will last? Texas is having this issue with flood control right now, and that’s with far less growth than that of Southern California in the first half of the 20th century.

The upshot is that in a very wealthy boomtown like 1920s Los Angeles (California ranking as the fourth richest state in 1929 and third richest in 1950), people have a lot of disposable income and not much public infrastructure. This leads to consumer spending – hence, cars. It takes long-term planning to convert such a city into a transit city, and this was not done in Los Angeles; plans to build a subway-surface tunnel for the Red Cars did not materialize, and the streetcars were not really competitive with cars on speed. Compounding the problems, the Red Cars were never profitable, in an era when public transit was expected to pay for itself; they were a loss leader for real estate development by owner Henry Huntington, and by the 1920s the land had already been sold at a profit.

Then came the war, and the same issue of private wealth without infrastructure loomed even more. California boomed during the war, thanks to war industries; there was new suburban development in areas with no streetcar service, with people carpooling to work or taking the bus as part of the national scheme to save fuel for the war effort. Transit maintenance was deferred throughout the country (as well as in Canada); after the war, Los Angeles had a massive population of people with very high disposable income, whose alternative to the car was either streetcars that were falling apart or buses that were even slower and had even worse ride quality.

Everywhere in the United States at the time, bustitution led to falling ridership per Ed Tennyson’s since-link-rotted TRB paper on the subject, even net of speed – Tennyson estimates based on postwar streetcar removal and later light rail construction that rail by itself gets 34-43% more ridership than bus service net of speed, and in both the bustitution and light rail eras the trains were also faster than the buses. But the older million-plus cities in the United States at the time had their subways to fall back on. Los Angeles had grown up too quickly and didn’t have one; neither did Detroit, which has a broadly Rust Belt economic and social history but a much more car-oriented transportation history.

The sort of long-term planning that produced transit revival did happen in the Western United States and Canada, elsewhere. In the 1970s, Western American and Canadian cities invented what is now standard light rail in both countries, often out of a deliberate desire not to be Los Angeles, at the time infamous for its smog; those cities have had more success with transit revival and transit-oriented development, especially Vancouver with its SkyTrain metro and aggressive high-rise residential and commercial transit-oriented development. But in the 1920s-40s, there was no such political counter to automobile dominance. Los Angeles did start building urban rail in the 1980s, but not at the necessary scale, and with ridiculously low levels of transit-oriented development: in the 2010s, after the economy recovered from the Great Recession, the 10 million strong county approved a hair more than 20,000 housing units annually, slightly less than the 2.5 million strong Metro Vancouver region.

Co-evolution of transportation and development

Los Angeles was not very decentralized in the first half of the 20th century. It had lower residential density, but none of today’s edge cities and smaller sub-centers really existed then, with only a handful of exceptions like Long Beach. By today’s standards, every American city was very centralized, with people generally working either in their home neighborhood or in city center. The city did have high car ownership for the era, and this encouraged freeway construction after the war, but the weak central business district came later.

Rather, what has happened since the war is a co-evolution of car-oriented transportation and weakly-centered job geography. Cars got stuck in traffic jams trying to get to city center, so business and local elites banded together to build an edge city closer to where management lived, first Miracle Mile and then Century City; Detroit similarly had New Center, where General Motors headquartered starting 1923. New York underwent the same process as businesses looked for excuses to move closer to the CEO’s home in the favored quarter (IBM in Armonk, General Electric in Fairfield), but the existence of the subway meant that there was still demand for ever more city center skyscrapers, even as city residents of means fled to the suburbs.

This story of co-evolution is not purely American. I keep going back to Paul Barter’s thesis, which portrays the urban layout in his example cities in East and Southeast Asia as starting from a similar point in the middle of the 20th century. Density was high throughout, and central sectors in Southeast Asia were ethnically segregated, with a Chinatown, an Indian area, a low-density Western colonial sector, and so on. The divergence happened in the second half of the 20th century, Singapore choosing to be a transit city and Kuala Lumpur and Bangkok choosing to be car-oriented cities. I don’t have job data for these cities, but my impression as a visitor (and former Singapore resident) is that Singapore has a clear central office district and Bangkok has a hodgepodge of skyscrapers with no real structure to where they go within the central areas.

So yes, Los Angeles’s weak center is making it difficult to expand public transportation there now and get high ridership out of it; boosting the region’s transit-oriented development rate to that of Vancouver would help, but Los Angeles is far more decentralized and auto-oriented than Vancouver was in the 1990s. But the historic sequence is not first polycentrism and then automobility, unlike in Upper Silesia or the Ruhr. Rather, a weak center (never true polycentricity) and automobility co-evolved, reinforcing each other to this day – it’s hard to get ridership out of urban rail expansions since city center is so weak, so people drive, so jobs locate where there’s less traffic and avoid Downtown Los Angeles.

Quick Note: New Jersey Highway Widening Alternatives

The Effective Transit Alliance just put out a proposal for how New Jersey can better spend the $10 billion that it is currently planning on spending on highway widening.

The highway widening in question is a simple project, and yet it costs $10.7 billion for around 13 km. I’m unaware of European road tunnels that are this expensive, and yet the widening is entirely above-ground. It’s not even good as a road project – it doesn’t resolve the real bottleneck across the Hudson, which requires rail anyway. It turns out that even at costs that New Jersey Transit thinks it can deliver, there’s a lot that can be done for $10.7 billion:

Source: Robert Hale at ETA

I contributed to this project, but not much, just some sanity checks on costs; other ETA members who I will credit on request did the heavy pulling of coming up with a good project list and prioritizing them even at New Jersey costs, which are a large multiple of normal costs for rail as well as for highways. I encourage everyone to read and share the full report, linked above; we worked on it in conjunction with some other New Jersey environmental organizations, which supplied some priorities for things we are less familiar with than public transit technicalities like bike lane priorities.

FDP and Vice Signaling

Finance Minister Christian Lindner (FDP) just tweeted that more investment in roads is good – because if traffic flows more smoothly then there will be less greenhouse gas emissions. Reaction was not positive, and as of when I’m writing, 16 hours later, it is mildly ratioed. People understand that this is wrong. Lindner himself probably gets this too. Understanding what’s going on here requires talking about bullshit in the philosophical sense of Harry Frankfurt, and about something that I don’t have a better name for than vice signaling.

Is it true?

Absolutely not. It’s standard in transport studies that the construction of more highways in high-demand areas induces more traffic, as people take advantage of the greater convenience of driving. Drivers drive to new destinations that they forwent or chose to take public transport to, and new developments are built in areas opened by new highway development.

There may be exceptions to this in declining areas. The United States loves building new grade-separated interchanges in declining regions. This doesn’t generate new demand, because traffic is already uncongested, and the purpose of roadbuilding there is a political statement more than transport policy. But that’s not Germany. The roads under discussion here are in growth regions: there’s a plan to widen the beltway around Munich, A99, to 10 lanes, and the federal and Berlin FDP have both badgered Berlin to build a further stage of A100 parallel to the Ringbahn, which the city wants not to under the influence of the Green Party. Both motorway projects are likely to lead to adverse mode shift if built, and Lindner knows this.

There’s a developmental argument that induced demand is actually good. Matt Yglesias has made it before, saying that if road building induces more traffic then it means people get to take more trips and are better off. Many roadbuilders have made that very argument, and others were aware of it; Robert Moses, for example, was perfectly aware that his parkways and bridges were inducing more car traffic, and was fine with it, because he thought more driving was good. But that’s not what Lindner is saying: Lindner is saying that building new motorways and keeping them without a speed limit reduces greenhouse gas emissions, which is just bullshit.

Bullshit

The term “bullshit” has a precise meaning in analytic philosophy, due to Harry Frankfurt. It comprises a type of deception about the speaker’s mindset, rather than about the facts, unlike an ordinary lie. A politician who denies a scandal they are involved with is lying: their goal is to get you to believe that they are innocent of this scandal. A politician who, having been caught in said scandal, launches a series of schlock patriotic speeches is bullshitting: their goal is to get you to think they are fundamentally aligned with your values. From Frankfurt’s original essay, we have,

Telling a lie is an act with a sharp focus. It is designed to insert a particular falsehood at a specific point in a set or system of beliefs, in order to avoid the consequences of having that point occupied by the truth. This requires a degree of craftsmanship, in which the teller of the lie submits to objective constraints imposed by what he takes to be the truth. The liar is inescapably concerned with truth-values. In order to invent a lie at all, he must think he knows what is true. And in order to invent an effective lie, he must design his falsehood under the guidance of that truth. On the other hand, a person who undertakes to bullshit his way through has much more freedom. His focus is panoramic rather than particular. He does not limit himself to inserting a certain falsehood at a specific point, and thus he is not constrained by the truths surrounding that point or intersecting it. He is prepared to fake the context as well, so far as need requires. This freedom from the constraints to which the liar must submit does not necessarily mean, of course, that his task is easier than the task of the liar. But the mode of creativity upon which it relies is less analytical and less deliberative than that which is mobilized in lying. It is more expansive and independent, with mare spacious opportunities for improvisation, color, and imaginative play. This is less a matter of craft than of art. Hence the familiar notion of the “bullshit artist.”

The statement “widening roads reduces CO2 emissions” is this kind of bullshit. It is not quite a lie: it is false, but Lindner is not especially concerned with whether it is true or false. His goal is not to persuade people that building another section of A100 and widening A99 is good for climate; nobody who cares about climate change thinks that. Rather, his goal is to position himself as the sort of person who doesn’t listen to climate advocates and will just push for road widenings. The deception is part of the positioning: if he’d said that he understands the Greens’ argument against road investment but roads are important for economic development, he’d come off as too reasonable, which is not his intention.

Sounding deliberately unreasonable is the domain of populist politicians, and Frankfurt himself and many of his followers have noticed how political bullshit is on the rise as populism grows more normalized. Nigel Farage, for example, bullshitted that smoking isn’t bad for your health. And FDP is a populist party, despite its liberal origins and relatively moderate political positioning; it swung from deficit scold at the start of the current government to tax scold precisely as inflation rose last year, the opposite of what one should expect of a Washington Consensus-following economically orthodox party.

Vice signaling

There’s a pseudo-academic term going around the web, virtue signaling. The idea is that individuals and organizations engage in actions to signal that they’re better people than they really are; companies hire consultants on diversity, equity, and inclusion (DEI) without ever doing anything about their glass ceiling and harassment problems.

But it may be more fruitful to discuss its opposite – that is, vice signaling. This is when people take actions to portray themselves as terrible people, for any number of reasons:

  • Loyalty: criminal gangs are deliberately threatening and often require that prospective members commit murder (this is a requirement to become a made man in the Italian-American mafia), because this forces new members to have crossed both a moral and a legal event horizon from which they can’t come back; populist political movements don’t require crimes, but do require ridiculous beliefs
  • Novelty: this is what in the online language of the early 2010s was called the Slate Pitch – a take that aims to be novel by saying something really out there, often by writers who can’t separate themselves from the rest of the pack by any more productive means
  • Love of power: some people lie to you, with your full knowledge that they’re lying, just to flex that they can get away with it

Lindner loves this kind of vice signaling, I think out of novelty more than anything. FDP could be a party of YIMBYism, fiscal conservatism, and digital governance; younger members of the party who identify with neoliberalism wish that it were that party. The problem is that the difference between such a party and SPD is not large; Scholz ran on building more housing Germany-wide, and there’s a fair amount of consensus in favor of this in the party’s wings. SPD’s worst attributes so far are its officious leadership anchored in the Lower Saxony clique and consequently its sluggish governance and refusal to do more to support Ukraine – but FDP has the exact same problems, Lindner having told Ukraine when it asked for aid as the war started that there was no point since they’d fall in hours either way.

So to distinguish themselves from everyone else, FDP engages in vice signaling about climate and transport. They’re not trying to convince anyone that their policies are good for climate change. Rather, they’re doing the exact opposite: they’re trying to convince center-right voters that they’re an internal opposition within a coalition that is engaging in modal shift in federal funding priorities, and that they are explicitly against any climate action, because cars are good and only annoying hippies prefer trains.

The Leakage Problem

I’ve spent more than ten years talking about the cost of construction of physical infrastructure, starting with subways and then branching on to other things, most.

And yet there’s a problem of comparable size when discussing infrastructure waste, which, lacking any better term for it, I am going to call leakage. The definition of leakage is any project that is bundled into an infrastructure package that is not useful to the project under discussion and is not costed together with it. A package, in turn, is any program that considers multiple projects together, such as a stimulus bill, a regular transport investment budget, or a referendum. The motivation for the term leakage is that money deeded to megaprojects leaks to unrelated or semi-related priorities. This often occurs for political reasons but apolitical examples exist as well.

Before going over some examples, I want to clarify that the distinction between leakage and high costs is not ironclad. Sometimes, high costs come from bundled projects that are costed together with the project at hand; in the US they’re called betterments, for example the $100 million 3 km bike lane called the Somerville Community Path for the first, aborted iteration of the Green Line Extension in Boston. This blur is endemic to general improvement projects, such as rail electrification, and also to Northeast Corridor high-speed rail plans, but elsewhere, the distinction is clearer.

Finally, while normally I focus on construction costs for public transport, leakage is a big problem in the United States for highway investment, for political reasons. As I will explain below, I believe that nearly all highway investment in the US is waste thanks to leakage, even ignoring the elevated costs of urban road tunnels.

State of good repair

A month ago, I uploaded a video about the state of good repair grift in the United States. The grift is that SOGR is maintenance spending funded out of other people’s money – namely, a multiyear capital budget – and therefore the agency can spend it with little public oversight. The construction of an expansion may be overly expensive, but at the end of the day, the line opens and the public can verify that it works, even for a legendarily delayed project like Second Avenue Subway, the Berlin-Brandenburg Airport, or the soon-to-open Tel Aviv Subway. It’s a crude mechanism, since the public can’t verify safety or efficiency, but it’s impossible to fake: if nothing opens, it embarrasses all involved publicly, as is the case for California High-Speed Rail. No such mechanism exists for maintenance, and therefore, incompetent agencies have free reins to spend money with nothing to show for it. I recently gave an example of unusually high track renewal costs in Connecticut.

The connection with leakage is that capital plans include renewal and long-term repairs and not just expansion. Thus, SOGR is leakage, and when its costs go out of control, they displace funding that could be used for expansion. The NEC Commission proposal for high-speed rail on the Northeast Corridor calls for a budget of $117 billion in 2020 dollars, but there is extensive leakage to SOGR in the New York area, especially the aforementioned Connecticut plan, and thus for such a high budget the target average speed is about 140 km/h, in line with the upgraded legacy trains that high-speed lines in Europe replace.

Regionally, too, the monetary bonfire that is SOGR sucks the oxygen out of the room. The vast majority of the funds for MTA capital plans in New York is either normal replacement or SOGR, a neverending program whose backlog never shrinks despite billions of dollars in annual funding. The MTA wants to spend $50 billion in the next 5 years on capital improvements; visible expansion, such as Second Avenue Subway phase 2, moving block signaling on more lines, and wheelchair accessibility upgrades at a few stations, consists of only a few billion dollars of this package.

This is not purely an American issue. Germany’s federal plan for transport investment calls for 269.6 billion euros in project capital funding from 2016 to 2030, including a small proportion for projects planned now to be completed after 2031; as detailed on page 14, about half of the funds for both road and rail are to go to maintenance and renewal and only 40% to expansion. But 40% for expansion is still substantially less leakage than seen in American plans like that for New York.

Betterments and other irrelevant projects

Betterments straddle the boundary between high costs and leakage. They can be bundled with the cost of a project, as is the case for the Somerville Community Path for original GLX (but not the current version, from which it was dropped). Or they can be costed separately. The ideal project breakdown will have an explicit itemization letting us tell how much money leaked to betterments; for example, for the first Nice tramway line, the answer is about 30%, going to streetscaping and other such improvements.

Betterments fall into several categories. Some are pure NIMBYism – a selfish community demands something as a precondition of not publicly opposing the project, and the state caves instead of fighting back. In Israel, Haifa demanded that the state pay for trenching portions of the railroad through the southern part of the city as part of the national rail electrification project, making specious claims about the at-grade railway separating the city from the beach and even saying that high-voltage electrification causes cancer. In Toronto, the electrification project for the RER ran into a similar problem: while rail electrification reduces noise emissions, some suburbs still demanded noise walls, and the province caved to the tune of $1 billion.

Such extortion is surplus extraction – Israel and Toronto are both late to electrification, and thus those projects have very high benefit ratios over base costs, encouraging squeaky wheel behavior, raising costs to match benefits. Keeping the surplus with the state is crucial for enabling further expansion, and requires a combination of the political courage to say no and mechanisms to defer commitment until design is more advanced, in order to disempower local communities and empower planners.

Other betterments have a logical reason to be there, such as the streetscape and drainage improvements for the Nice tramway, or to some extent the Somerville Community Path. The problem with them is that chaining them to a megaproject funded by other people’s money means that they have no sense of cost control. A municipality that has to build a bike path out of its own money will never spend $100 million on 3 km; and yet that was the projected cost in Somerville, where the budget was treated as acceptable because it was second-order by broader GLX standards.

Bad expansion projects

Sometimes, infrastructure packages include bad with good projects. The bad projects are then leakage. This is usually the politically hardest nut to crack, because usually this happens in an environment of explicit political negotiation between actors each wanting something for their own narrow interest.

For example, this can be a regional negotiation between urban and non-urban interests. The urban interests want a high-value urban rail line; the rest want a low-value investment, which could be some low-ridership regional rail or a road project. Germany’s underinvestment in high-speed rail essentially comes from this kind of leakage: people who have a non-urban identity or who feel that people with such identity are inherently more morally deserving of subsidy than Berlin or Munich oppose an intercity high-speed rail network, feeling that trains averaging 120-150 km/h are good enough on specious polycentricity grounds. Such negotiation can even turn violent – the Gilets Jaunes riots were mostly white supremacist, but they were white supremacists with a strong anti-urban identity who felt like the diesel taxes were too urban-focused.

In some cases, like that of a riot, there is an easy solution, but when it goes to referendum, it is harder. Southern California in particular has an extreme problem of leakage in referendums, with no short- or medium-term solution but to fund some bad with the good. California’s New Right passed Prop 13, which among other things requires a 2/3 supermajority for tax hikes. To get around it, the state has to promise somthing explicit to every interest group. This is especially acute in Southern California, where “we’re liberal Democrats, we’re doing this” messaging can get 50-60% but not 67% as in the more left-wing San Francisco area and therefore regional ballot measures for increasing sales taxes for transit have to make explicit promises.

The explicit promises for weak projects, which can be low-ridership suburban light rail extensions, bond money for bus operations, road expansion, or road maintenance, damage the system twice. First, they’re weak on a pure benefit-cost ratio. And second, they commit the county too early to specific projects. Early commitment leads to cost overruns, as the ability of nefarious actors (not just communities but also contractors, political power brokers, planners, etc.) to demand extra scope is high, and the prior political commitment makes it too embarrassing to walk away from an overly bloated project. For an example of early commitment (though not of leakage), witness California High-Speed Rail: even now the state pretends it is not canceling the project, and is trying to pitch it as Bakersfield-Merced high-speed rail instead, to avoid the embarrassment.

The issue of roads

I focus on what I am interested in, which is public transport, but the leakage problem is also extensive for roads. In the United States, road money is disbursed to the tune of several tens of billions of dollars per year in the regular process, even without any stimulus funding. It’s such an important part of the mythos of public works that it has to be spread evenly across the states, so that politicians from a bygone era of non-ideological pork money can say they’ve brought in spending to their local districts. I believe there’s even a rule requiring at least 92% of the fuel tax money generated in each state to be spent within the state.

The result is that road money is wasted on low-growth regions. From my perspective, all road money is bad. But let’s put ourselves for a moment in the mindset of a Texan or Bavarian booster: roads are good, climate change is exaggerated, deficits are immoral (German version) or taxes are (Texan version), the measure of a nation’s wealth is how big its SUVs are. In this mindset, road money should be spent prudently in high-growth regions, like the metropolitan areas of the American Sunbelt or the biggest German cities. It definitely should not be spent in declining regions like the Rust Belt, where due to continued road investment and population decline, there is no longer traffic congestion.

And yet, road money is spent in those no-congestion regions. Politicians get to brag about saving a few seconds’ worth of congestion with three-figure million dollar interchanges and bypasses in small Rust Belt towns, complete with political rhetoric about the moral superiority of regions whose best days lay a hundred years ago to regions whose best days lie ahead.

Leakage and consensus

It is easy to get trapped in a consensus in which every region and every interest group gets something. This makes leakage easier: an infrastructure package will then have something for everyone, regardless of any benefit-cost analysis. Once the budget rather than the outcome becomes the main selling point, black holes like SOGR are easy to include.

It’s critical to resist this trend and fight to oppose leakage. Expansion should go to expansion, where investment is needed, and not where it isn’t. Failure to do so leads to hundreds of billions in investment money most of which is wasted independently for the construction cost problem.

Streaming the Biden Infrastructure Plan

I streamed my thoughts about the Biden infrastructure plan, and unlike previous streams, I uploaded this to YouTube. I go into more details (and more tangents) on video, but, some key points:

  • Out of the nearly $600 billion in the current proposal that is to be spent on transportation, public transportation is only $190 billion: $80 billion for intercity rail, $85 billion for (other) public transit, $25 billion for zero-emissions buses. This 2:1 split between cars and transit is a change from the typical American 4:1, but in Germany it’s 55:42 and that’s with right-wing ministers of transport.
  • Some of the spending on the car bucket is about electric vehicles, including $100 billion in consumer subsidies, but that’s still car spending. People who don’t drive don’t qualify for these subsidies. It’s an attempt to create political consensus by still spending on roads and not just public transit while saying that it’s green, but encouraging people to buy more cars is not particularly green, and there’s no alternative to sticks like fuel taxes in addition to carrots.
  • The $25 billion for zero-emissions buses is likely to go to battery-electric buses, which are still in growing pains and don’t function well in winter. In California, in fact, trolleybuses are funded from the fixed infrastructure bucket alongside light rail and subways and are ineligible for the bucket of funding for zero-emissions buses. It is unknown whether in-motion charging qualifies for this bucket; it should, as superior technology that functions well even in places with harsh winters.
  • The $85 billion for public transit splits as $55 billion for state of good repair (SOGR) and only $30 billion for expansion (including $5 billion for accessibility). This is a terrible idea: SOGR is carte blanche for agencies that aim to avoid public embarrassment rather than provide useful service to spend money without having to promise anything to show for it, and Amtrak in particular cycles between deferring maintenance and then crying poverty when money becomes available. Federal money should go to expansion alone; a state or local agency that doesn’t set aside money for maintenance now isn’t going to do so in the future, and periodic infusions of SOGR money create moral hazard by encouraging maintenance deferral in good times.
  • The Amtrak money is a total waste; in particular, Amtrak wants $39 billion for the Northeast Corridor while having very little to show for it, preferring SOGR, climate resilience, and agency turf battles over the Gateway project over noticeable improvements in trip times, reliability, or capacity.
  • The expansion money is not by itself bad, and in fact should grow by $55 billion at the expense of SOGR, but I worry about cost control. I’m just not sure how to express it in Washington policy language, as opposed to agency-level language regarding in-house design, more flexible procurement, civil service independence, adoption of foreign best practice and not just domestic practices, keeping station footprints small, using cut-and-cover more, and so on.

You should go watch the whole thing, which has some on-screen links to the breakdowns above, but it’s a 1:45 video.

Marketing Public Transport is Unlike Marketing Cars

I’ve written before about how planning public transport differs from planning cars, and how the macroeconomics of producing good public transport differ from that of exporting cars. Another difference between the two modes is marketing. I don’t usually like talking about marketing – I prefer making things to selling them – but it’s relevant, because private-sector marketing is a huge industry, and sometimes marketers end up making decisions about public transportation, and some of those lead to counterproductive planning.

The main difference is that public transportation does not have competition the way private industry does. In many travel markets, for example rush hour travel to city center, it is a monopoly. In others, it isn’t, but it remains fundamentally different from the competition, whereas private-sector marketing generally involves competition between fairly similar products, such as different brands of cars or computers or supermarkets. This also means that trying to turn public transit into a competition between similar providers is overrated: it is bad from the perspective of good planning, but it turns the industry into something private-sector marketers are more familiar with, and is therefore at risk of being adopted (for example, with EU competition mandates) despite being counterproductive.

Brand identity

Companies that make products that are very similar to their competition engage in extensive marketing. Coke vs. Pepsi is the most cliché example, but different brands of cookies, fast food, cars, computers, and smartphones do the same. The differences between these brands are never zero: I can generally tell different brands of bottled water by taste, Samsung- and Sony-made Androids have some differences (let alone iPhones), and so on. But it’s not large either.

Objectively, the cost of switching firms is small, so marketers first of all spend enormous amounts of money on advertising, and second of all aim to create identity markers to impose an emotional cost on customers who switch: “I am a Mac.” If the small differences involve differences in price point, then this can include a marker of class identity; even if they don’t, there’s no shortage of ways to tell people what brand of alcohol or food or video game best fits their microidentity. Establishing brand identity also involves loyalty programs, like airline miles and hotel points: why compete when you can lock passengers into your airline alliance?

This can even bleed into product development to some extent. Microsoft’s embrace, extend, exterminate strategy was designed around getting people to switch to Microsoft products from competitors. This was not a marketing gimmick – the people who developed Excel made sure everything that Lotus 1-2-3 users were used to would also feature in Excel in order to reduce the cost of switching to Microsoft, before using Windows’ power to lock people into Office.

Mass transit is not like this

Public transportation competes with cars as a system. It has a monopoly in certain travel markets, namely rush hour travel to city center, but the existence of those markets itself comes from real estate competition, in which it is necessary to entice companies to choose to locate in city center rather than in a suburban office park. Of note, the following features, all unusual for private-sector competition, apply:

  • Competition is for the most part binary: public transportation versus cars. (Bikes complement transit.)
  • The public transit side of the competition has economies of scale because of the importance of frequency of arrival, and thus is harmed by any internal competition, whereas the car industry has different automakers and works just fine that way.
  • The service has very little customization – everyone rides the same trains. Attempts to introduce product differentiation are harmful because of the frequency effect.
  • The product is completely different from the competition – useful at different times of day, in different neighborhoods, for different destinations. Switching incurs costs of similar magnitude to those of migration.
  • Much of the competition is not for customers, but for development – city center development is good for public transit, sprawl is good for cars.
  • There is competition over public resources, which cannot be divorced from the mode even in an environment of privatization – someone still has to build roads and finance subways.

The consequences of mass transit Fordism

Public transportation is and remains a Fordist product – no product differentiation, highly regimented worker timetables, one-size-fits-all construction, vertical integration. The vertical integration aspects go even farther than early-20th century industry, covering infrastructure, timetables, the equipment, and development. User choice is extensive regarding where to go within the system – I have access to far more variety of products as a consumer and jobs as a worker in Berlin (and had even more in Paris) than I would have driving in a sprawl environment, but I can’t choose what brand of train to use.

This is particularly important when preferences are heterogeneous. Different users have different walking speeds, transfer penalties, idiosyncrasies about access to wifi on board, etc. Planning has to use averages, and for the most part this works without too many seams, but it means that the standard way private businesses use product differentiation doesn’t work.

Of note, this Fordism also exists for the road network, if not for the cars themselves. It’s just far less visible. Drivers may have different preferences that translate to different costs and benefits for a cloverleaf versus a four-level interchange, but engineers can’t have two sets of interchanges, they just build one based on criteria of traffic density. However, the experience of driving on the interchange is not visible as part of the system to the drivers, who occasionally grumble about traffic at a particular intersection but don’t see it as clearly as transit riders see specific transfer stations or modal questions like streetcar vs. subway.

How private-sector marketing can harm transit

Because mass transit is a single system for everyone, standard private-sector marketing schemes involve changes to service that harm the overall system.

Creating brand identification with a specific subgroup of users, such as when some private buses market themselves to tech workers with wifi and USB chargers and charge higher fares, and still can’t make money. Public transportation has to work on an any vehicle, any place, any time principle. Only a handful of hyper-frequent routes can take multiple brands without losing passengers due to the lower frequency of each brand, but on those routes the only reliable way to timetable service is to run on headway management in which case any vehicle can substitute for any vehicle, which means you can’t brand.

This is especially bad when the brands are different modes: bus, bike, streetcar, subway, commuter train. When some modes are marketed to the rich and others are to the poor, capacity is wasted and frequency within each class is lower. Moreover, infrastructure planning is weaker with such differentiation, because often a region or subclass will be close to the wrong mode, forcing expensive additional construction. The United States fails by running commuter rail just for the rich while subways are for the rest, while India fails by doing the exact opposite; both countries build unnecessary infrastructure and underinvest in intermodal integration as a result.

Less harmful but still likely to suck oxygen out of the planning room are various gimmicks, especially at the political level. For example, a program in the mold of cash-for-clunkers to pay people to sell their car and ride public transportation is a waste of money – the main cost of switching from cars to transit or vice versa is that in either case the set of destinations one can easily travel to changes.

Finally, because public transportation is a complex system, trading the need for inter-organization and interdepartmental organization for much lower overall provision costs, people who come into it from consumer product markets may miss some of the required connections. This is especially true of development – people who sell consumer products, including cars, don’t need to think how urban design has to look for their product to succeed. Even people who have heard of transit-oriented development may get it wrong; in the United States, it is common to build some apartment buildings next to a train station but neglect retail and local services, and YIMBY as a movement is at best indifferent to city center office towers.

Cities With Underbuilt Public Transportation

There’s a number of very big cities in middle-income countries that don’t really have strong public transport, and I’d like to go over some of their features. The archetype for this urban form is Bangkok, but I think this is pretty common in much of Latin America too, it’s ubiquitous in Southeast Asia except in Singapore, and Cairo has it too and I suspect most of the rest of Africa will as it moves into the middle income category. I’m fairly certain in what I am saying as far as Southeast Asia is concerned, following Paul Barter’s thesis; in Turkey I am less certain, and in Latin America and Egypt I am speculating. Of note, while those regions have some shared features, one feature that is not shared is cost: while Southeast Asian construction costs are very high, Latin American ones are not, and Turkish ones are very low. Of course low costs enable Turkey to build more subways, but it’s only doing so right now as it’s converging to the high income category.

Density with cars

Bangkok is a dense city. It is not to be confused with Hong Kong, but it is not to be confused with Atlanta either. That said, the density has not much structure, similar to the situation of Los Angeles – there is no single central business district, just a big central area with sub-districts with high-rise office and residential towers. Private vehicle ownership is high, and as of 2014, the modal split (source, PDF-p. 44) was 58% car and motorcycle (trending up), 37% bus (falling rapidly), 5% metro (trending up).

My understanding is that this pattern is also how cities like Manila, Lahore, Karachi, and Jakarta look, and even São Paulo, which has a decent-size metro system with pretty high ridership but it’s still undersized for how big the region is. Dhaka (which is low- rather than middle-income) and Cairo have especially high residential densities.

Slow metro expansion

All of these cities are building urban rail, but not particularly quickly (except Istanbul, where costs are unusually low). Bangkok is adding a few lines, but even under current plans will keep having an underbuilt system. The same is true for plans in Manila, Jakarta, Lahore, Cairo, and low-income Dhaka. In most of Latin America, too, expansion is pretty slow – the only city where I’ve seen really fast expansion recently relative to size is Santiago, which is both approximately the richest in the region and also has below-average construction costs.

The slow construction is an important feature. Some cities build quickly and can transition toward reliance on public transport. For example, Taipei only began building its MRT network in the 1990s, long after the most similar capital city to it in overall development history, Seoul, had had a multi-line network. It was a city of motorcycles in the 1990s and so were the other Taiwanese cities, but through fast (albeit expensive) construction has become a transit city, developing higher-intensity central business districts at key MRT junctions and turning its older unstructured density into a structured one.

I am also excluding India from this analysis for the same reason. Indian cities are making enormous mistakes in metro construction, chief of which are poor integration with suburban rail and high construction costs, but they are building, and even keep a lid on costs by building mostly elevated systems. The Delhi Metro ridership is flagging, but it’s a big system, about the same size as New York or London, and it’s expanding quickly; the rest of India is still only catching up, but the plan for Mumbai in 10 years is extensive. Tehran is in the same basket as Indian megacities, judging at least by its healthy pace of metro expansion.

Car domination

Even when most people do not own cars or even motorcycles, as was the case in Thailand until recently, the government prefers cars to public transport. This comes from the fact that unless the public transport is excellent, or only serves where the middle class works, richer people will use cars more than poorer people, and tilt government policy to their preferences. Lagos, for example, was seriously considering banning its jitneys in 2017, called danfos, even as car ownership was 150 per 1,000 people, and has periodically considered such a ban a few times since.

This domination exists even in very poor cities. Years ago, a cousin who was visiting Kampala described its traffic to me as a brutal pecking order in which cars fear trucks and pedestrians fear cars. If 5% of the population owns cars, that’s still the richest 5%, and they get to dictate the rules.

Is it governance?

Something most of those cities I’m describing have in common is a form of government called anocracy. It’s defined as an intermediate form between democracy and autocracy, but really should mean a system in which there is unclear authority – perhaps there are elections but they are not truly free, perhaps there is a deep state, perhaps there is a dictator but the dictator’s power is circumscribed by powerful magnates and norms that do permit some political criticism. Anocracies tend not to have very strong states – a strong state under a dictator rapidly becomes a stable autocracy, for example Russia’s transition to autocracy in the last 20 years under Putin, whereas a strong democratic state evolves enduring norms and institutions of civil liberties and pluralism, like Taiwan and South Korea starting in the 1990s.

I suspect there may be a connection here: anocracies do not really have the state planning ability to restrain local magnates, like these top 10-20% of the population who are drivers. They can build roads, because it takes much less state capacity to incrementally expand roads, often with local sponsorship, than to plan a multi-line metro system, let alone do the clever multimodal design integration between infrastructure and timetabling that Switzerland does.

This is not a perfect correlation. Egypt is autocratic and not anocratic, although its recent military coup suggests it may not be as stable as autocracies with full civilian control of the military like Russia and China. Vietnam appears even more stable, and showcased high state capacity through excellent management of the corona crisis (though coup-ridden Thailand has had an excellent response as well). Moreover, there is no correlation between anocracy and construction costs – even putting my finger on the scales and classifying Turkey as not-anocratic, the correlation between a dummy that takes the value 1 at what I think are non-Turkish anocracies and construction costs is 0.06.

That said, there may be something to the fact that we see rapid expansion of metro systems in a developing country with relatively strong democratic institutions, i.e. India, and saw such expansion in turn-of-the-millennium Taiwan, and likewise we also see rapid expansion in relatively stable autocracies like Iran and China, but we see much less of it in countries without strong governments. And Moscow’s fast metro growth in Russia’s anocratic phase in the 1990s and early 2000s can be excused as having some strong-state planning institutions, inherited from the USSR. Egypt in contrast never had these institutions, with its imperfect state control of the military.