IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v107y2018icp35-51.html
   My bibliography  Save this article

The Swedish congestion charges: Ten years on

Author

Listed:
  • Börjesson, Maria
  • Kristoffersson, Ida

Abstract

Time-of-day dependent cordon-based congestion charging systems were introduced in Stockholm in 2006, and in Gothenburg in 2013. The Stockholm system was significantly extended in 2016, and the peak charge has been increased in the two cities. This paper analyses the effects of the first decade with the Swedish congestion charges, specifically effects of the system updates, and draws policy lessons for the years to come. Should we introduce congestion charges in more cities? Should we extend the systems that we have? We synthesize previous research findings and focus on the long-term effects that have varied over time including the recent years: the price elasticities on the traffic volume across the cordon, the revenue and system operating cost, the public and political support, and consequences for the transport planning process. We also explore the effects on peak and off-peak, and different types of traffic (trucks, company cars and private passenger cars), because of access to novel data that make this analysis possible. We find that the price elasticities have increased over time in Stockholm, but decreased in Gothenburg. We find that the public support increased in the two cities after their introduction until the systems were revised; since then, the public support has declined in both cities. We find that the price elasticity was substantially lower when the charging levels were increased, and when the Stockholm system was extended, than when the charges were first introduced, a likely reason being that the most price-sensitive traffic was already priced off-the road at the introduction.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transa:v:107:y:2018:i:c:p:35-51
    DOI: 10.1016/j.tra.2017.11.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856417300782
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    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. Phang, Sock-Yong & Toh, Rex S., 1997. "From manual to electronic road congestion pricing: The Singapore experience and experiment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(2), pages 97-106, June.
    3. Börjesson, Maria & Eliasson, Jonas & Hugosson, Muriel & Brundell-Freij, Karin, 2012. "The Stockholm congestion charges – five years on. Effects, acceptability and lessons learnt," Working papers in Transport Economics 2012:3, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. 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.
    5. 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.
    6. 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.
    7. repec:dgr:uvatin:20070060 is not listed on IDEAS
    8. 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.
    9. Eliasson, Jonas & Börjesson, Maria & van Amelsfort, Dirk & Brundell-Freij, Karin & Engelson, Leonid, 2013. "Accuracy of congestion pricing forecasts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 52(C), pages 34-46.
    10. repec:eee:trapol:v:60:y:2017:i:c:p:99-107 is not listed on IDEAS
    11. 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.
    12. Bastian, Anne & Börjesson, Maria & Eliasson, Jonas, 2016. "Explaining “peak car” with economic variables," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 236-250.
    13. 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.
    14. Eliasson, Jonas, 2008. "Lessons from the Stockholm congestion charging trial," Transport Policy, Elsevier, vol. 15(6), pages 395-404, November.
    15. Kottenhoff, Karl & Brundell Freij, Karin, 2009. "The role of public transport for feasibility and acceptability of congestion charging - The case of Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 297-305, March.
    16. Eliasson, Jonas & Hultkrantz, Lars & Nerhagen, Lena & Rosqvist, Lena Smidfelt, 2009. "The Stockholm congestion - charging trial 2006: Overview of effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 240-250, March.
    17. Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    18. Foreman, Kate, 2016. "Crossing the bridge: The effects of time-varying tolls on curbing congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 76-94.
    19. Xie, Litian & Olszewski, Piotr, 2011. "Modelling the effects of road pricing on traffic using ERP traffic data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(6), pages 512-522, July.
    20. 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.
    21. Amy Finkelstein, 2009. "E-ztax: Tax Salience and Tax Rates," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 969-1010.
    22. Kristina Shampanier & Nina Mazar & Dan Ariely, 2007. "Zero as a Special Price: The True Value of Free Products," Marketing Science, INFORMS, vol. 26(6), pages 742-757, 11-12.
    23. Odeck, James & Bråthen, Svein, 2008. "Travel demand elasticities and users attitudes: A case study of Norwegian toll projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 77-94, January.
    24. Gibson, Matthew & Carnovale, Maria, 2015. "The effects of road pricing on driver behavior and air pollution," Journal of Urban Economics, Elsevier, vol. 89(C), pages 62-73.
    25. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    26. Börjesson, Maria & Brundell-Freij, Karin & Eliasson, Jonas, 2014. "Not invented here: Transferability of congestion charges effects," Transport Policy, Elsevier, vol. 36(C), pages 263-271.
    27. Börjesson, Maria & Eliasson, Jonas & Hugosson, Muriel B. & Brundell-Freij, Karin, 2012. "The Stockholm congestion charges—5 years on. Effects, acceptability and lessons learnt," Transport Policy, Elsevier, vol. 20(C), pages 1-12.
    28. Agarwal, Sumit & Koo, Kang Mo & Sing, Tien Foo, 2015. "Impact of electronic road pricing on real estate prices in Singapore," Journal of Urban Economics, Elsevier, vol. 90(C), pages 50-59.
    29. Eva Gutiérrez‐i‐Puigarnau & Jos N. Van Ommeren, 2011. "Welfare Effects Of Distortionary Fringe Benefits Taxation: The Case Of Employer‐Provided Cars," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1105-1122, November.
    30. Eliasson, Jonas, 2016. "Is congestion pricing fair? Consumer and citizen perspectives on equity effects," Transport Policy, Elsevier, vol. 52(C), pages 1-15.
    31. Santos, Georgina, 2004. "11. Urban Road Pricing In The U.K," Research in Transportation Economics, Elsevier, vol. 9(1), pages 251-282, January.
    32. Bastian, Anne & Börjesson, Maria, 2015. "Peak car? Drivers of the recent decline in Swedish car use," Transport Policy, Elsevier, vol. 42(C), pages 94-102.
    33. Dixit, Vinayak V. & Harb, Rami C. & Martínez-Correa, Jimmy & Rutström, Elisabet E., 2015. "Measuring risk aversion to guide transportation policy: Contexts, incentives, and respondents," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 15-34.
    34. 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).
    35. 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.
    36. 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.
    37. 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.
    38. 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.
    39. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
    40. Hamilton, Carl J., 2011. "Revisiting the cost of the Stockholm congestion charging system," Transport Policy, Elsevier, vol. 18(6), pages 836-847, November.
    41. 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.
    42. 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.
    43. Börjesson, Maria & Hamilton, Carl J. & Näsman, Per & Papaix, Claire, 2015. "Factors driving public support for road congestion reduction policies: Congestion charging, free public transport and more roads in Stockholm, Helsinki and Lyon," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 452-462.
    44. 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.
    45. Börjesson, Maria & Kristoffersson, Ida, 2014. "Assessing the welfare effects of congestion charges in a real world setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 339-355.
    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. Asplund, Disa & Pydokke, Roger, 2018. "Distributional effects of fares and frequencies for public transport in small cities," Working papers in Transport Economics 2018:7, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

    More about this item

    Keywords

    Congestion charges; Time-dependent cordon; Price elasticity; Traffic effects; Revenue; System operating costs; Public opinion; Political support;

    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

    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:eee:transa:v:107:y:2018:i:c:p:35-51. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.