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Revisiting the cost of the Stockholm congestion charging system

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  • Hamilton, Carl J.

Abstract

In January 2006, a system for congestion charging was introduced in the city of Stockholm, Sweden. The charging scheme was run in the form of a full-scale trial for seven months, after which it was deactivated, awaiting its evaluation and an advisory public referendum. Several parties, including representatives of the scientific community as well as media and special interest groups, have analysed and evaluated the system. A recurring theme in several of these analyses is that the cost to build and operate the system was excessive, compared to costs for other road charging installations. This study revisits some of the key project participants and archive data, to provide a deeper understanding of what were the major cost drivers and whether lower cost can be achieved in future installations. The approach taken is to emphasise understanding of the particular circumstances rather than comparing aggregates with other seemingly similar systems. The main conclusions include the identification of a rational actor paying an insurance against unacceptable risk, the importance of the election cycle, and the interplay between risk, acceptance, performance, and cost. A conceptual model for this interaction is suggested.

Suggested Citation

  • Hamilton, Carl J., 2011. "Revisiting the cost of the Stockholm congestion charging system," Transport Policy, Elsevier, vol. 18(6), pages 836-847, November.
    • Handle: RePEc:eee:trapol:v:18:y:2011:i:6:p:836-847
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    References listed on IDEAS

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    3. Börjesson , Maria & Kristoffersson, Ida, 2017. "The Swedish congestion charges: ten years on: - and effects of increasing charging levels," Working papers in Transport Economics 2017:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
    5. Eliasson, Jonas, 2017. "Congestion pricing," MPRA Paper 88224, University Library of Munich, Germany.
    6. Vonk Noordegraaf, Diana & Annema, Jan Anne & van Wee, Bert, 2014. "Policy implementation lessons from six road pricing cases," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 172-191.
    7. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    8. Milenković, Marina & Glavić, Draženko & Maričić, Milica, 2019. "Determining factors affecting congestion pricing acceptability," Transport Policy, Elsevier, vol. 82(C), pages 58-74.
    9. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    10. Axsen, Jonn & Wolinetz, Michael, 2021. "Taxes, tolls and ZEV zones for climate: Synthesizing insights on effectiveness, efficiency, equity, acceptability and implementation," Energy Policy, Elsevier, vol. 156(C).

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