GREEN CARS STERILIZE CONGESTION CHARGES: A MODEL ANALYSIS OF THE REDUCED IMPACT OF STOCKHOLM ROAD TOLLS

Lars Hultkrantz and Xing Liu ()
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Xing Liu: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden

No 2009:16, Working Papers from Örebro University, School of Business

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.

Keywords: congestion pricing; equity effects; modal choice (search for similar items in EconPapers)
JEL-codes: H23 H54 R48 (search for similar items in EconPapers)
Date: 2009-11-17
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Journal Article: Green cars sterilize congestion charges: A model analysis of the reduced impact of Stockholm road tolls (2012)
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