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Pierre Kopp and Remy Prud'Homme

Articles, 2010, vol. 37, issue 2

Abstract: The Stockholm toll causes, as predicted by theory, a reduction in traffic, leading to increased speeds, and to time gains for remaining car-users. But this is only the beginning of the evaluation story. One must also estimate: implementation costs, environmental gains, imperfect secondary markets (in public transportation) benefits and costs, as well as public finance costs and benefits. The net outcome appears to be negative, contrary to the outcome of the official estimate. For an urban toll to produce net benefits, it seems that three conditions are required: a relatively high degree of road congestion, a reasonably cheap implementation system, and a relatively low level of public transport congestion.

Date: 2010
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