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Road pricing and parking policy


  • Jansson, Jan Owen


The starting point of this paper is that the collection costs of urban road pricing have turned out to be unexpectedly high. A comparative cost analysis of the congestion charging system of London, Stockholm, Oslo and Singapore also shows that there are large collection cost differences. The most striking difference is between Oslo and London. Oslo, like Stockholm has the necessary, natural, qualities for a central city toll ring with a limited number of entrances; just 18 and 19 tollgates are required. For large historic cities like London with hundreds of inlets to the central city, tollgates at every entrance would involve high investment costs and be very obtrusive in the street scene. The problem is, however, that the present London charging system, with no tollgates, shows high running costs, ten times higher than in Oslo, in spite of the fact that the charged number of vehicles is the same in the two cities. This is a formidable obstacle to alleviating urban traffic congestion in many big cities. The charging technology could hopefully be developed, however, another approach is to develop and combine other measures including traffic regulation, parking policy and public transport subsidisation, which would be only second-best in a hypothetical situation where road pricing is without costs. This paper focuses on parking policy. Two strands of parking policy reform are discussed; fringe benefit taxation of free workplace parking which has recently been introduced in Sweden and a two-part tariff at parking meters, which is suggested as an extension of congestion charging to all day traffic within the central city.

Suggested Citation

  • Jansson, Jan Owen, 2010. "Road pricing and parking policy," Research in Transportation Economics, Elsevier, vol. 29(1), pages 346-353.
  • Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:346-353

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    References listed on IDEAS

    1. AfDB AfDB, . "AfDB Group Annual Report 2007," Annual Report, African Development Bank, number 63 edited by Koua Louis Kouakou.
    2. Rich, Jeppe & Nielsen, Otto Anker, 2007. "A socio-economic assessment of proposed road user charging schemes in Copenhagen," Transport Policy, Elsevier, vol. 14(4), pages 330-345, July.
    3. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, January.
    4. Jonathan Leape, 2006. "The London Congestion Charge," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 157-176, Fall.
    5. Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR;CES;MSH, vol. 21(46), pages 263-310, April.
    6. 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.
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    Cited by:

    1. repec:eee:jotrge:v:29:y:2013:i:c:p:43-51 is not listed on IDEAS
    2. Ahmadi Azari, Kian & Arintono, Sulistyo & Hamid, Hussain & Rahmat, Riza Atiq O.K., 2013. "Modelling demand under parking and cordon pricing policy," Transport Policy, Elsevier, vol. 25(C), pages 1-9.
    3. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.


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