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The politico-economic link between public transport and road pricing: An ex-ante study of the Stockholm road-pricing trial

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  • Armelius, Hanna
  • Hultkrantz, Lars

Abstract

A full-scale road pricing trial will be performed in Stockholm for 7 months in 2006. The road tolls are bundled with major improvements of public transport. The trial will be followed by a local referendum. We conduct numerical simulations with a model of modal choice to estimate the welfare effects of road tolls on commuters crossing the toll zone. We find that in the absence of revenue recycling, few commuters gain from the road-toll reform. However, the fraction of gainers rises considerably when public transport is improved as planned in Stockholm.

Suggested Citation

  • Armelius, Hanna & Hultkrantz, Lars, 2006. "The politico-economic link between public transport and road pricing: An ex-ante study of the Stockholm road-pricing trial," Transport Policy, Elsevier, vol. 13(2), pages 162-172, March.
  • Handle: RePEc:eee:trapol:v:13:y:2006:i:2:p:162-172
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    Cited by:

    1. Russo, Antonio, 2013. "Voting on road congestion policy," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 707-724.
    2. Martin Koning & Rémy Prud'Homme & Pierre Kopp, 2010. "Paris: a Desire Named Streetcar," Working Papers halshs-00467896, HAL.
    3. 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.
    4. Hultkrantz, Lars & Liu, Xing, 2012. "Green cars sterilize congestion charges: A model analysis of the reduced impact of Stockholm road tolls," Transport Policy, Elsevier, vol. 21(C), pages 110-118.
    5. 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.
    6. 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.
    7. repec:cog:urbpla:v:2:y:2017:i:4:p:81-92 is not listed on IDEAS
    8. Palma, André de & Lindsey, Robin & Proost, Stef, 2006. "Research challenges in modelling urban road pricing: An overview," Transport Policy, Elsevier, vol. 13(2), pages 97-105, March.
    9. David Levinson & Andrew Odlyzko, 2007. "Too Expensive to Meter: The influence of transaction costs in transportation and communication," Working Papers 200802, University of Minnesota: Nexus Research Group, revised Feb 2007.
    10. Souche, Stéphanie & Raux, Charles & Croissant, Yves, 2012. "On the perceived justice of urban road pricing: An empirical study in Lyon," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1124-1136.
    11. Börjesson, Maria & Kristoffersson, Ida, 2012. "Estimating welfare effects of congestion charges in real world settings," Working papers in Transport Economics 2012:13, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    12. 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.
    13. Prud'homme, Rémy & Koning, Martin & Kopp, Pierre, 2011. "Substituting a tramway to a bus line in Paris: Costs and benefits," Transport Policy, Elsevier, vol. 18(4), pages 563-572, August.
    14. Hultkrantz, Lars & Nilsson, Jan-Eric & Arvidsson, Sara, 2012. "Voluntary internalization of speeding externalities with vehicle insurance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 926-937.
    15. de Palma, André & Lindsey, Robin & Proost, Stef, 2007. "Chapter 1 Investment and the use of tax and toll revenues in the transport sector: The research agenda," Research in Transportation Economics, Elsevier, vol. 19(1), pages 1-26, January.
    16. Prud'homme, Rémy & Koning, Martin & Lenormand, Luc & Fehr, Anne, 2012. "Public transport congestion costs: The case of the Paris subway," Transport Policy, Elsevier, vol. 21(C), pages 101-109.
    17. King, David & Manville, Michael & Shoup, Donald, 2007. "The political calculus of congestion pricing," Transport Policy, Elsevier, vol. 14(2), pages 111-123, March.
    18. Jonas Westin, 2011. "Labor Market Effects of Road Pricing in a Population with Continuously Distributed Value of Time," ERSA conference papers ersa10p1458, European Regional Science Association.

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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