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Urban Road Pricing: A Comparative Study on the Experiences of London, Stockholm and Milan

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  • Edoardo Croci
  • Aldo Ravazzi Douvan

Abstract

Urban road pricing schemes have been designed in order to reduce externalities generated by traffic. Main impacts regard: time loss due to congestion, local pollution, noise; contribution to climate change caused by emissions of GHGs, pavement costs and road damages, increase in accidents risks, extra-fuel consumption, decrease in quality of life. Moreover road pricing schemes generate public revenues. The paper performs a comparative evaluation of the three main experiences of urban road pricing in Europe: London (in operations since 2003), Stockholm (in operations since 2007, after a period of trial in 2006) and Milan (in operations since 2008, with a shift from pollution to congestion charge in 2012). Since their launch, the schemes have been adjusted in terms of amount of charge, area of application and other features. The schemes have been able to reduce negative externalities generated by traffic, such as accidents, congestion and emissions, up to different levels. A comparative analysis of the three schemes is provided. Determinants of differences in the effectiveness of the schemes are evaluated with a particular focus on elasticity of use of private vehicles to charge. The results can be useful to design well targeted congestion charge schemes and to assess their efficacy.

Suggested Citation

  • Edoardo Croci & Aldo Ravazzi Douvan, 2016. "Urban Road Pricing: A Comparative Study on the Experiences of London, Stockholm and Milan," IEFE Working Papers 85, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:bcu:iefewp:iefewp85
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mohamad Shatanawi & Fatma Abdelkhalek & Ferenc Mészáros, 2020. "Urban Congestion Charging Acceptability: An International Comparative Study," Sustainability, MDPI, vol. 12(12), pages 1-15, June.
    2. Pablo González-Aliste & Iván Derpich & Mario López, 2023. "Reducing Urban Traffic Congestion via Charging Price," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Helmers, Viola & Frondel, Manuel & Sommer, Stephan, 2023. "On the Acceptance of Congestion Charges: Experimental Evidence for Six European Countries," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277706, Verein für Socialpolitik / German Economic Association.
    4. Andrea Baranzini & Stefano Carattini & Linda Tesauro, 2021. "Designing Effective and Acceptable Road Pricing Schemes: Evidence from the Geneva Congestion Charge," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 417-482, July.
    5. Shatanawi, Mohamad & Alatawneh, Anas & Mészáros, Ferenc, 2022. "Implications of static and dynamic road pricing strategies in the era of autonomous and shared autonomous vehicles using simulation-based dynamic traffic assignment: The case of Budapest," Research in Transportation Economics, Elsevier, vol. 95(C).
    6. 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.
    7. Oliver Falck & Anita Dietrich & Astrid Janko & Tobias Kluth & Anita Wölfl, 2020. "Traffic Effects of a Congestion Charge in Munich," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 115.
    8. Clements, Lewis M. & Kockelman, Kara M. & Alexander, William, 2021. "Technologies for congestion pricing," Research in Transportation Economics, Elsevier, vol. 90(C).
    9. Daniele Crotti & Elena Maggi, 2017. "Urban Distribution Centres and Competition among Logistics Providers: a Hotelling Approach," Working Papers 2017.17, Fondazione Eni Enrico Mattei.
    10. Basu, Rounaq & Ferreira, Joseph, 2021. "Sustainable mobility in auto-dominated Metro Boston: Challenges and opportunities post-COVID-19," Transport Policy, Elsevier, vol. 103(C), pages 197-210.
    11. Fafoutellis, Panagiotis & Mantouka, Eleni G. & Vlahogianni, Eleni I., 2022. "Acceptance of a Pay-How-You-Drive pricing scheme for city traffic: The case of Athens," Transportation Research Part A: Policy and Practice, Elsevier, vol. 156(C), pages 270-284.
    12. Ballo, Lukas & de Freitas, Lucas Meyer & Meister, Adrian & Axhausen, Kay W., 2023. "The E-Bike City as a radical shift toward zero-emission transport: Sustainable? Equitable? Desirable?," Journal of Transport Geography, Elsevier, vol. 111(C).
    13. Roberto Ruggieri & Marco Ruggeri & Giuliana Vinci & Stefano Poponi, 2021. "Electric Mobility in a Smart City: European Overview," Energies, MDPI, vol. 14(2), pages 1-29, January.

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    More about this item

    Keywords

    Urban road pricing; Travel demand elasticity; Sustainable mobility;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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