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Policies for internalizing externalities from car transport in two Swedish cities

Author

Listed:
  • Pyddoke, Roger

    (Swedish National Road and Transport Research Institute (VTI))

  • Lind, Joar

    (Swedish National Road and Transport Research Institute (VTI))

Abstract

Cities around the world contemplate how the transports of the city can be greened by shifting passenger transport demand from private car to more sustainable modes. Car users in cities frequently do not fully pay for the externalities (for example congestion, delays, accidents, noise, and air pollution) they cause other car users and citizens. This paper models and compares the effects of welfare optimized parking charges, congestion taxes, and kilometre taxes in Malmö and Uppsala in Sweden, internalization of externalities, welfare and shift of demand from car use to other modes. The results indicate that there is a significant potential for improvement in social welfare and for shifting mode from car to other modes by pricing car use externalities by all three instruments. The increased costs per trip imposed on car users by the instrument vary by a factor two from about EUR 1 to about EUR 2.

Suggested Citation

  • Pyddoke, Roger & Lind, Joar, 2024. "Policies for internalizing externalities from car transport in two Swedish cities," Working Papers 2024:2, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2024_002
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    References listed on IDEAS

    as
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    3. Calthrop, Edward & Proost, Stef, 2006. "Regulating on-street parking," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 29-48, January.
    4. Asplund, Disa, 2021. "Optimal frequency of public transport in a small city: examination of a simple method," Working Papers 2021:9, Swedish National Road & Transport Research Institute (VTI).
    5. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2017. "Optimal prices and frequencies for buses in Stockholm," Economics of Transportation, Elsevier, vol. 9(C), pages 20-36.
    6. Stef Proost, 2018. "Reforming Private and Public Urban Transport Pricing," International Transport Forum Discussion Papers 2018/15, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    parking charge; congestion tax; kilometre tax; Sweden; welfare; optimization; mode shift;
    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
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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