Effects of a Congestion Charge on Retail Trade and Tourism in Munich

Oliver Falck, Anita Dietrich and Anita Wölfl
Authors registered in the RePEc Author Service: Anita Fichtl

in ifo Forschungsberichte from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: The present study qualitatively examines the effects of an anti-congestion fee for Munich’s Mittlerer Ring on the regional trade and the tourism industry. We come to the conclusion that there is no reason for concern for retailers, hoteliers, restaurateurs and tour operators: An anti-congestion fee would not significantly affect travel to and within the city center. As cities with anti-congestion fees such as London and Stockholm show, customers switch to other means of transport for shopping and leisure trips - without negative effects on the turnover of businesses in the city center. In the long run, retail and tourism would even benefit from an anti-congestion fee as it could significantly reduce traffic jams. Drivers, whether they are customers, tourists or deliveries, save time; stress, noise and exhaust fumes are reduced. Productivity increases and the city center becomes even more attractive.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ifofob:116

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