IDEAS home Printed from https://ideas.repec.org/p/hhs/ctswps/2017_002.html
   My bibliography  Save this paper

The Swedish congestion charges: ten years on: - and effects of increasing charging levels

Author

Abstract

This paper explores the effects of the Swedish congestion charges 10 years on. We find that the price elasticity of the traffic across the cordon was lower when the charging levels were increased than when they were first introduced, in Stockholm and in Gothenburg. The price elasticity was also lower when the Stockholm system was extended to include the Essinge bypass (E4/E20). The implication of these results is that adjustments in charging levels between days and seasons would have a limited effect on traffic volume. Moreover, the elasticity is substantially higher in the off-peak period than in the peak. A third finding is that the long-term elasticity is declining in Gothenburg but increasing in Stockholm. Public support is also declining in Gothenburg but increasing in Stockholm. The operating costs of the systems have declined.

Suggested Citation

  • 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).
    • Handle: RePEc:hhs:ctswps:2017_002
    as

    Download full text from publisher

    File URL: http://www.transportportal.se/swopec/CTS2017-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
    2. Whitehead, Jake & Franklin, Joel P. & Washington, Simon, 2014. "The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 24-40.
    3. Ieromonachou, P. & Potter, S. & Warren, J.P., 2006. "Norway's urban toll rings: Evolving towards congestion charging?," Transport Policy, Elsevier, vol. 13(5), pages 367-378, September.
    4. West, Jens & Börjesson, Maria & Engelson, Leonid, 2016. "Accuracy of the Gothenburg congestion charges forecast," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 266-277.
    5. Börjesson, Maria & Eliasson, Jonas & Hamilton, Carl, 2016. "Why experience changes attitudes to congestion pricing: The case of Gothenburg," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 1-16.
    6. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    7. Eliasson, Jonas, 2016. "Is congestion pricing fair? Consumer and citizen perspectives on equity effects," Transport Policy, Elsevier, vol. 52(C), pages 1-15.
    8. Stephen Ison & Tom Rye, 2005. "Implementing Road User Charging: The Lessons Learnt from Hong Kong, Cambridge and Central London," Transport Reviews, Taylor & Francis Journals, vol. 25(4), pages 451-465, October.
    9. Ian W. H. Parry & Antonio Bento, 2001. "Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    10. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August.
    11. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    12. West, Jens & Börjesson, Maria, 2016. "The Gothenburg congestion charges: CBA and equity," Working papers in Transport Economics 2016:17, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    13. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," University of California Transportation Center, Working Papers qt9js9z8gz, University of California Transportation Center.
    14. Alex Anas & Robin Lindsey, 2011. "Reducing Urban Road Transportation Externalities: Road Pricing in Theory and in Practice," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 66-88, Winter.
    15. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    16. Mackie, Peter, 2005. "The London congestion charge: A tentative economic appraisal. A comment on the paper by Prud'homme and Bocajero," Transport Policy, Elsevier, vol. 12(3), pages 288-290, May.
    17. Schade, J. & Baum, M., 2007. "Reactance or acceptance? Reactions towards the introduction of road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(1), pages 41-48, January.
    18. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
    19. Hamilton, Carl J., 2011. "Revisiting the cost of the Stockholm congestion charging system," Transport Policy, Elsevier, vol. 18(6), pages 836-847, November.
    20. Olszewski, Piotr & Xie, Litian, 2005. "Modelling the effects of road pricing on traffic in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 755-772.
    21. Eliasson, Jonas, 2014. "The role of attitude structures, direct experience and reframing for the success of congestion pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 81-95.
    22. repec:bla:scandj:v:103:y:2001:i:4:p:645-71 is not listed on IDEAS
    23. Odd I. Larsen & Knut Østmoe, 2001. "The Experience of Urban Toll Cordons in Norway: Lessons for the Future," Journal of Transport Economics and Policy, University of Bath, vol. 35(3), pages 457-471, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Börjesson, Maria & Eliasson, Jonas & Rubensson, Isak, 2020. "Distributional effects of public transport subsidies," Journal of Transport Geography, Elsevier, vol. 84(C).
    2. Lorenzo Varela, Juan Manuel & Börjesson, Maria & Daly, Andrew, 2018. "Public transport: One mode or several?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 137-156.
    3. Souche-Le Corvec, Stéphanie & Mercier, Aurélie & Ovtracht, Nicolas & Chevallier, Amandine, 2019. "Urban toll and electric vehicles: The winning ticket for Lyon Metropolitan Area (France)," Research in Transportation Economics, Elsevier, vol. 73(C), pages 17-33.
    4. Mukhopadhyay, Boidurjo & Chatwin, Chris, 2021. "'Your Driver is Didi and Minutes Away from Your Pick-Up Point': Understanding Employee Motivation in the Gig Economy of China," GLO Discussion Paper Series 805, Global Labor Organization (GLO).
    5. Varela, Juan Manuel Lorenzo & Börjesson, Maria & Daly, Andrew, 2018. "Quantifying errors in travel time and cost by latent variables," Working papers in Transport Economics 2018:3, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    6. Eliasson, Jonas & Börjesson, Maria, 2022. "Costs and benefits of parking charges in residential areas," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 95-109.
    7. Jens West & Maria Börjesson, 2020. "The Gothenburg congestion charges: cost–benefit analysis and distribution effects," Transportation, Springer, vol. 47(1), pages 145-174, February.
    8. Lorenzo Varela , Juan Manuel & Börjesson, Maria & Daly, Andrew, 2017. "Public transport: one mode or several?," Working papers in Transport Economics 2017:6, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Börjesson, Maria & Kristoffersson, Ida, 2018. "The Swedish congestion charges: Ten years on," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 35-51.
    2. Eliasson, Jonas, 2017. "Congestion pricing," MPRA Paper 88224, University Library of Munich, Germany.
    3. Jens West & Maria Börjesson, 2020. "The Gothenburg congestion charges: cost–benefit analysis and distribution effects," Transportation, Springer, vol. 47(1), pages 145-174, February.
    4. 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.
    5. Ortúzar, Juan de Dios & Bascuñán, Raúl & Rizzi, Luis Ignacio & Salata, Andrés, 2021. "Assessing the potential acceptability of road pricing in Santiago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 153-169.
    6. Boggio, Margherita & Beria, Paolo, 2019. "The role of transport supply in the acceptability of pollution charge extension. The case of Milan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 92-106.
    7. Jean-Philippe Meloche, 2019. "Towards a New Era in Road Pricing? Lessons from the Experience of First Movers," CIRANO Working Papers 2019s-35, CIRANO.
    8. Börjesson, Maria & Kristoffersson, Ida, 2015. "The Gothenburg congestion charge. Effects, design and politics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 134-146.
    9. Eliasson, Jonas, 2016. "Is congestion pricing fair? Consumer and citizen perspectives on equity effects," Transport Policy, Elsevier, vol. 52(C), pages 1-15.
    10. Krabbenborg, Lizet & Molin, Eric & Annema, Jan Anne & van Wee, Bert, 2020. "Public frames in the road pricing debate: A Q-methodology study," Transport Policy, Elsevier, vol. 93(C), pages 46-53.
    11. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    12. West, Jens & Börjesson, Maria, 2016. "The Gothenburg congestion charges: CBA and equity," Working papers in Transport Economics 2016:17, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    13. Li, Xun & Rey, David & Dixit, Vinayak V., 2018. "An axiomatic characterization of fairness in transport networks: Application to road pricing and spatial equity," Transport Policy, Elsevier, vol. 68(C), pages 142-157.
    14. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    15. Kristoffersson, Ida & Engelson, Leonid & Börjesson, Maria, 2017. "Efficiency vs equity: Conflicting objectives of congestion charges," Transport Policy, Elsevier, vol. 60(C), pages 99-107.
    16. Börjesson , Maria & Kristoffersson , Ida, 2014. "The Gothenburg congestion charge: effects, design and politics," Working papers in Transport Economics 2014:25, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    17. Andrea Baranzini & Stefano Carattini & Linda Tesauro, 2021. "Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 417-482, July.
    18. Milenković, Marina & Glavić, Draženko & Maričić, Milica, 2019. "Determining factors affecting congestion pricing acceptability," Transport Policy, Elsevier, vol. 82(C), pages 58-74.
    19. 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).
    20. Hensher, David A. & Li, Zheng, 2013. "Referendum voting in road pricing reform: A review of the evidence," Transport Policy, Elsevier, vol. 25(C), pages 186-197.

    More about this item

    Keywords

    Congestion charges; Behavioural adaptation; Time-dependent cordon; Tolling system; Traffic effects; Public support; Transferability; System design;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:ctswps:2017_002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CTS (email available below). General contact details of provider: http://www.cts.kth.se/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.