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Is congestion pricing fair? Consumer and citizen perspectives on equity effects

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Abstract

This paper discusses and analyses whether congestion charges can be considered to be “fair” in different senses to the word. Two different perspectives are distinguished: the consumer perspective and the citizen perspective. The consumer perspective is the traditional one in equity analyses, and includes changes in travel costs, travel times and so on. Using data from four European cities, I show that highincome groups pay more than lowincome groups, but lowincome groups pay a larger share of their income. I argue that which of these distributional measures is most appropriate depends on the purpose(s) of the charging system. The citizen perspective is about individuals’ views of social issues such as equity, procedural fairness and environmental issues. I argue that an individual can be viewed as a “winner” from a citizen perspective if a reform (such as congestion pricing) is aligned with her views of what is socially desirable. Using the same data set, I analyse to what extent different income groups “win” or “lose” from a citizen perspective – i.e., to what extent congestion pricing is aligned with the societal preferences of high and lowincome groups. It turns out that these differences are small, but overall, middleincome groups “win” the most in this sense.

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  • Eliasson, Jonas, 2016. "Is congestion pricing fair? Consumer and citizen perspectives on equity effects," Working papers in Transport Economics 2016:5, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
  • Handle: RePEc:hhs:ctswps:2016_005
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    1. 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.
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    1. repec:eee:trapol:v:60:y:2017:i:c:p:99-107 is not listed on IDEAS
    2. repec:eee:transa:v:107:y:2018:i:c:p:35-51 is not listed on IDEAS
    3. 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).
    4. 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

    Distributional effects; Equity effects; Consumer vs. citizen; Congestion charges; Congestion pricing; Fairness;

    JEL classification:

    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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