Many businesses and commuters in New York City are complaining about a proposed “congestion tax” announced by Mayor Michael Bloomberg on Earth Day. The tax would charge trucks $21 and cars $8 per day to enter the city between 6 a.m. to 6 p.m. on weekdays.

The tax will add a substantial cost to deliver products into New York City, and raise the costs of operating a business there, especially a small business.

The idea of this type of tax during peak hours has been proposed by some to relieve congestion in major cities. However, Dr. Michael Meyer, Director of the Transportation Institute at Georgia Tech, doesn’t believe it can work in many places.

“The only two cities I can see this sticking are New York City and maybe San Francisco,” he said, citing their unique physical characteristics. “In other cities, the businesses and commuters might just move outside of the city,” he added.

One response to the tax might be to make fewer, larger deliveries, but that has its own supply chain complications, especially for large and small retailers with limited storage space.