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The Economics Of Urban Tolls: Lessons From The Stockholm Case

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  • Pierre Kopp
  • Remy Prud'Homme

Abstract

The Stockholm toll causes, as predicted by theory, a reduction in traffic, leading to increased speeds, and to time gains for remaining car-users. But this is only the beginning of the evaluation story. One must also estimate: implementation costs, environmental gains, imperfect secondary markets (in public transportation) benefits and costs, as well as public finance costs and benefits. The net outcome appears to be negative, contrary to the outcome of the official estimate. For an urban toll to produce net benefits, it seems that three conditions are required: a relatively high degree of road congestion, a reasonably cheap implementation system, and a relatively low level of public transport congestion.

Suggested Citation

  • Pierre Kopp & Remy Prud'Homme, 2010. "The Economics Of Urban Tolls: Lessons From The Stockholm Case," Articles, International Journal of Transport Economics, vol. 37(2).
    • Handle: RePEc:jte:journl:2010:2:37:4
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    Cited by:

    1. Raux, Charles & Souche, Stéphanie & Pons, Damien, 2012. "The efficiency of congestion charging: Some lessons from cost–benefit analyses," Research in Transportation Economics, Elsevier, vol. 36(1), pages 85-92.
    2. Ioulia Ossokina & Gerard Verweij, 2014. "Urban traffic externalities: quasi-experimental evidence from housing prices," CPB Discussion Paper 267.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Ossokina, Ioulia V. & Verweij, Gerard, 2015. "Urban traffic externalities: Quasi-experimental evidence from housing prices," Regional Science and Urban Economics, Elsevier, vol. 55(C), pages 1-13.
    4. Odeck, James & Aasness, Marie Aarestrup, 2024. "What are the determinants of road users' experiences with congestion: Econometric assessment using ordered response models," Research in Transportation Economics, Elsevier, vol. 104(C).
    5. Prud'homme, Rémy & Koning, Martin & Lenormand, Luc & Fehr, Anne, 2012. "Public transport congestion costs: The case of the Paris subway," Transport Policy, Elsevier, vol. 21(C), pages 101-109.

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