Introduction vs. price change of road toll – a panel data analysis of revealed preferences

Stian Brosvik Bayer and Stefan Flügel

Research in Transportation Economics, 2025, vol. 112, issue C

Abstract: Cordon-based congestion charging systems effectively reduce traffic, with initial implementations often achieving 15–20 % reductions in vehicle volumes, as observed in Singapore, London, and Stockholm. However, subsequent toll increases typically produce much smaller elasticities, a phenomenon known as "Large Elasticity at Introduction" (LEI). This suggests that introducing tolls on previously free roads triggers stronger behavioral responses than adjusting toll rates on already tolled roads.

Keywords: Transportation modes; Travel demand; Road tolls; Zero-price effect (search for similar items in EconPapers)
JEL-codes: R4 R41 R48 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0739885925000757
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:retrec:v:112:y:2025:i:c:s0739885925000757

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_2&version=01

DOI: 10.1016/j.retrec.2025.101592

Access Statistics for this article

Research in Transportation Economics is currently edited by M. Dresner

More articles in Research in Transportation Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().