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The Gothenburg congestion charges: CBA and equity

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Abstract

This paper performs an ex-post cost- benefit and equity analysis of the Gothenburg congestion charges introduced in 2013. We base the analysis on observed effects transport model that is able to predict the effect of the charges on travel times and traffic volumes with high accuracy. We find that the net social benefit of the charge is positive. However, we also show that the system is regressive. Low income citizens pay a larger share of their income for three reasons. First, all income classes are highly car dependent in Gothenburg, due to the relatively low public transport share. Second, workers in the highest income class have considerably higher access to company cars, and are therefore either exempt from paying the charge, or can deduce the charge from their income tax. Third, high income individuals have higher values of time. Moreover, the revenue is spent mainly on a rail tunnel, which primarily benefits commuters residing far out in the region.

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  • 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).
    • Handle: RePEc:hhs:ctswps:2016_017
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    Cited by:

    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. 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).
    3. Kristoffersson, Ida & Engelson, Leonid & Börjesson, Maria, 2017. "Efficiency vs equity: Conflicting objectives of congestion charges," Transport Policy, Elsevier, vol. 60(C), pages 99-107.

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    More about this item

    Keywords

    Congestion charges; Cost-benefit analysis; Welfare analysis; Equity; Transport policy; Decision support;
    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

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