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The Experience of Urban Toll Cordons in Norway: Lessons for the Future

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  • Odd I. Larsen
  • Knut Østmoe

Abstract

Urban toll cordons are operated in three Norwegian cities (Bergen, Oslo, and Trondheim). Both technically and in terms of fulfilling stated objectives, the toll cordons have been a success. Revenue from tolling has reached or exceeded expectations and projects financed by toll revenue have been completed on schedule and without major cost overruns. It is now proposed to extend the scheme and to consider toll rates differentiated by time of day. Estimates indicate that the social benefits of moving to differentiated toll rates in Oslo may approach NOK200 million on an annual basis. A recent amendment to the Road Act has paved the way for an alternative: road pricing. As opposed to tolling, the revenue from road pricing need not be allocated to road projects. The implications of these proposals are considered in this paper. © The London School of Economics and the University of Bath 2001

Suggested Citation

  • 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.
    • Handle: RePEc:tpe:jtecpo:v:35:y:2001:i:3:p:457-471
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    Cited by:

    1. Lana Krehic, 2022. "How do increases in electric vehicle use affect urban toll ring prices?," Public Choice, Springer, vol. 193(3), pages 187-209, December.
    2. Jansson, Jan Owen, 2010. "Road pricing and parking policy," Research in Transportation Economics, Elsevier, vol. 29(1), pages 346-353.
    3. Hensher, David A. & Puckett, Sean M., 2007. "Congestion and variable user charging as an effective travel demand management instrument," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 615-626, August.
    4. Georgina Santos & Laurent Rojey, 2004. "Distributional impacts of road pricing: The truth behind the myth," Transportation, Springer, vol. 31(1), pages 21-42, February.
    5. 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.
    6. May, Anthony & Milne, David, 2004. "3. The Impact On Network Performance Of Drivers' Response To Alternative Road Pricing Schemes," Research in Transportation Economics, Elsevier, vol. 9(1), pages 61-85, January.
    7. 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).
    8. Bekken, Jon-Terje & Norheim, Bård, 2007. "Chapter 7 Use of toll revenues and investment in Oslo," Research in Transportation Economics, Elsevier, vol. 19(1), pages 143-160, January.
    9. 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.
    10. Hysing, Erik, 2015. "Citizen participation or representative government – Building legitimacy for the Gothenburg congestion tax," Transport Policy, Elsevier, vol. 39(C), pages 1-8.
    11. Bernardo, Valeria & Fageda, Xavier & Flores-Fillol, Ricardo, 2021. "Pollution and congestion in urban areas: The effects of low emission zones," Economics of Transportation, Elsevier, vol. 26.
    12. David A. Hensher & Demi Chung, 2011. "Road Infrastructure and Institutional Reform: Tolling and Pricing," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 15, Edward Elgar Publishing.
    13. Theisen, Theis, 2020. "The impact of an urban toll ring on housing prices," Research in Transportation Economics, Elsevier, vol. 82(C).
    14. Daniel Albalate & Germa Bel, 2008. "Shaping urban traffic patterns through congestion charging: What factors drive success or failure?," IREA Working Papers 200801, University of Barcelona, Research Institute of Applied Economics, revised Jan 2008.
    15. Börjesson , Maria & Kristoffersson , Ida, 2014. "The Gothenburg congestion charge: effects, design and politics," Working papers in Transport Economics 2014:25, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    16. 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.
    17. Fageda, Xavier & Flores-Fillol, Ricardo & Theilen, Bernd, 2022. "Price versus quantity measures to deal with pollution and congestion in urban areas: A political economy approach," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    18. Jean-Philippe Meloche, 2019. "Towards a New Era in Road Pricing? Lessons from the Experience of First Movers," CIRANO Working Papers 2019s-35, CIRANO.
    19. Ramjerdi, Farideh & Minken, Harald & Østmoe, Knut, 2004. "10. Norwegian Urban Tolls," Research in Transportation Economics, Elsevier, vol. 9(1), pages 237-249, January.
    20. Hensher, David A. & Puckett, Sean M., 2005. "Road user charging: The global relevance of recent developments in the United Kingdom," Transport Policy, Elsevier, vol. 12(5), pages 377-383, September.

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