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Assessing the welfare effects of congestion charges in a real world setting

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  • Börjesson, Maria
  • Kristoffersson, Ida

Abstract

The standard textbook analysis shows that drivers as a group lose from congestion charges. However, it omits taste heterogeneity, shorter travel times far out in the larger network arising from less blocking back of upstream links and the possibility for drivers to reschedule. Taking account of these factors, using a dynamic scheduling model with heterogeneous users we find that all three add significantly to the benefit of the Stockholm congestion charges and that drivers as a group benefit from these charges even without recycling of revenues. This paper also provides an update on the consumer benefits of the Stockholm charges.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:339-355
    DOI: 10.1016/j.tre.2014.07.006
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:8:y:2016:i:3:p:265:d:65622 is not listed on IDEAS
    2. repec:eee:transa:v:107:y:2018:i:c:p:35-51 is not listed on IDEAS
    3. Koster, Paul R. & Koster, Hans R.A., 2015. "Commuters’ preferences for fast and reliable travel: A semi-parametric estimation approach," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 289-301.
    4. repec:eee:trapol:v:60:y:2017:i:c:p:99-107 is not listed on IDEAS
    5. Vincent A.C. van den Berg & Erik T. Verhoef, 2015. "Robot Cars and Dynamic Bottleneck Congestion: The Effects on Capacity, Value of Time and Preference Heterogeneity," Tinbergen Institute Discussion Papers 15-062/VIII, Tinbergen Institute, revised 11 Jul 2016.
    6. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    7. 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).
    8. repec:kap:transp:v:45:y:2018:i:3:d:10.1007_s11116-016-9750-2 is not listed on IDEAS
    9. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, Open Access Journal, vol. 8(3), pages 1-15, March.

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