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Green Cars Sterilize Congestion Charges: A Model Analysis Of The Reduced Impact Of Stockholm Road Tolls

  • Hultkrantz, Lars

    ()

    (Department of Business, Economics, Statistics and Informatics)

  • Liu, Xing

    ()

    (Department of Business, Economics, Statistics and Informatics)

Beforeafter comparisons indicate that the impact of the road toll in Stockholm on traffic volumes was smaller when the system was reopened in 2007, compared to the effect during the trial in 2006. We calibrate a modalchoice model on data for Stockholm from before and during the trial and use it to simulate the effects of some seemingly subtle changes of the design of the congestioncharge scheme. We find that the growth of the share of exempted ”green” cars and the decision to make charges deductible from the income tax may have considerably reduced the positive welfare effect of the toll.

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Paper provided by Örebro University, School of Business in its series Working Papers with number 2009:16.

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Length: 40 pages
Date of creation: 17 Nov 2009
Date of revision:
Handle: RePEc:hhs:oruesi:2009_016
Contact details of provider: Postal:
Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden

Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/

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  1. Small, K.A. & Yan, J., 1999. "The Value of "Value Princing" of Roads: Second-Best Pricing and Product Differentiation," Papers 99-00-02, California Irvine - School of Social Sciences.
  2. Isaksson, Karolina & Richardson, Tim, 2009. "Building legitimacy for risky policies: The cost of avoiding conflict in Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 251-257, March.
  3. Richard Arnott & An Yan, 2000. "The Two-Mode Problem: Second-Best Pricing and Capacity," Boston College Working Papers in Economics 474, Boston College Department of Economics.
  4. Amihai Glazer & Esko Niskanen, 2000. "Which Consumers Benefit from Congestion Tolls?," Discussion Papers 216, Government Institute for Economic Research Finland (VATT).
  5. 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.
  6. Kutzbach, Mark J., 2009. "Motorization in developing countries: Causes, consequences, and effectiveness of policy options," Journal of Urban Economics, Elsevier, vol. 65(2), pages 154-166, March.
  7. 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.
  8. Winslott-Hiselius, Lena & Brundell-Freij, Karin & Vagland, Asa & Byström, Camilla, 2009. "The development of public attitudes towards the Stockholm congestion trial," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(3), pages 269-282, March.
  9. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
  10. 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.
  11. 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.
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