The Next L.A. / Reinventing Our Future : The Workplace : IDEA FILE: Commuter Miles

How It Works

A market in commuter miles--similar to a market in smog credits--would be created to control how workers get to and from their jobs. Companies would be allotted miles based on a formula that takes into account the number of people a firm employs. Then companies could trade these commuter miles in an orderly market. Companies whose employees telecommute, work out of satellite offices near their homes, car pool, have staggered schedules or use public transportation would accumulate excess commuter miles. Companies whose employees tend to drive from home by themselves would run short of allotted commuter miles and would face financial penalties. But companies with excess commuter miles could sell them to companies that need more, much as pollution credits are now bought and sold.

Benefits

It would give businesses a strong financial incentive to reduce traffic congestion and encourage new forms of work, such as telecommuting.

Short-Term or Long-Term Impact?

It would take time for a system to be put in place.

Supporters

Telecommuting advocates and others endorse the idea as a sure-fire way to change work habits. They say it would force businesses to either change, or pay a price.

Opponents

Critics say such a plan probably would make some companies relocate out of the area, resulting in a net loss of jobs. They say it also would unfairly penalize some companies and force some smaller firms out of business.

The Costs

Some companies would end up paying steep costs to continue to have workers commute. The program could be funded through penalties collected against offending companies or through a percentage of the proceeds from the transactions.

REALITY CHECK

If it works for smog, why not for traffic congestion? A similar program to control development density and preserve historic structures in downtown Los Angeles by buying and selling unused “air rights” above low-rise buildings was successful in the 1980s--until the bottom fell out of the real estate market and developers stopped building office towers.

Good chance if political will is there.