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Modifications of the Stockholm congestion pricing scheme and effects on different user groups

  • Ida Kristoffersson

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  • Leonid Engelson
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    This paper analyzes how different user groups are affected by changes to the present congestion pricing scheme in Stockholm. The Stockholm congestion pricing scheme has shown that pricing of transport systems can reduce congestion and increase accessibility in the city centre. The pricing scheme can however be improved when it comes to ability to mitigate congestion without unnecessarily affecting user groups whose contribution to congestion is minor. A large number of theoretical studies have been made on equity effects of congestion pricing. Eliasson and Mattsson (2006) extend the theoretical literature with a quantitative methodology for evaluation of equity effects of real-world pricing schemes. In the mentioned paper, Eliasson and Mattsson conclude that analysis of equity effects have to be carried out for specific cities and specific congestion pricing and refund schemes to be able to draw any conclusions on whether a congestion pricing policy is regressive or progressive. We study effects of modifications of the congestion pricing scheme using a recently developed dynamic transport model for Stockholm called SILVESTER. Choice of departure time is modeled in SILVESTER, which is very important (but often omitted) since both congestion and the charge one has to pay is time-dependent. Car travel times and time spent in queues are calculated using mesoscopic traffic simulation. SILVESTER models car users, but they can switch to public transport, which makes it possible to evaluate the mode switch effect induced by a specific congestion pricing scheme. Possible modifications to analyze include changes to charged amounts, timetable and locations where the charge is levied. Regarding user groups, this paper analyzes effects for three different group categories: income, household type and occupation. SILVSTER allows for analysis of how costs and benefits are distributed across origin-destination-pairs and trip purposes. In order to compare costs and benefits for user groups, the share of trips that each group performs are calculated per origin and trip purpose. Furthermore, the effects of congestion charges for different user groups are, to a large extent, dependent on how revenues are used. This paper therefore also compares two refund strategies: lump-sum and improvement of public transport.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper1455.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1455.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p1455
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    Web page: http://www.ersa.org

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    1. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August.
    2. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
    3. Viegas, José M., 2001. "Making urban road pricing acceptable and effective: searching for quality and equity in urban mobility," Transport Policy, Elsevier, vol. 8(4), pages 289-294, October.
    4. Joakim Ekström & Leonid Engelson & Clas Rydergren, 2009. "Heuristic algorithms for a second-best congestion pricing problem," Netnomics, Springer, vol. 10(1), pages 85-102, April.
    5. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-79, June.
    6. Ida Kristoffersson & Leonid Engelson, 2009. "A Dynamic Transportation Model for the Stockholm Area: Implementation Issues Regarding Departure Time Choice and OD-pair Reduction," Networks and Spatial Economics, Springer, vol. 9(4), pages 551-573, December.
    7. Saleh, Wafaa & Farrell, Séona, 2005. "Implications of congestion charging for departure time choice: Work and non-work schedule flexibility," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 773-791.
    8. Mogens Fosgerau & Kurt van Dender, 2010. "Road Pricing with Complication," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/2, OECD Publishing.
    9. Small, Kenneth A., 1983. "The incidence of congestion tolls on urban highways," Journal of Urban Economics, Elsevier, vol. 13(1), pages 90-111, January.
    10. 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.
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