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

Author

Listed:
  • Hultkrantz, Lars

    (Department of Business, Economics, Statistics and Informatics)

  • Liu, Xing

    (Department of Business, Economics, Statistics and Informatics)

Abstract

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.

Suggested Citation

  • Hultkrantz, Lars & Liu, Xing, 2009. "Green Cars Sterilize Congestion Charges: A Model Analysis Of The Reduced Impact Of Stockholm Road Tolls," Working Papers 2009:16, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2009_016
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    Cited by:

    1. 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.
    2. André de Palma & Robin Lindsey, 2009. "Traffic Congestion Pricing Methods and Technologies," Working Papers hal-00414526, HAL.
    3. Whitehead, Jake & Franklin, Joel P. & Washington, Simon, 2014. "The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 24-40.
    4. Shewmake, Sharon & Jarvis, Lovell, 2014. "Hybrid cars and HOV lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 304-319.

    More about this item

    Keywords

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    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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