Road Pricing with Green Vehicle Exemptions: Theory and Evidence

J Peter Nilsson, Matthew Tarduno and Sebastian Tebbe ()
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Sebastian Tebbe: School of Global Policy and Strategy, University of California San Diego

No 7/2024, Working Papers in Economics and Statistics from Linnaeus University, School of Business and Economics, Department of Economics and Statistics

Abstract: We provide a framework for setting congestion charges that reflect emission and congestion externalities and policy responses, such as vehicle ownership, driving, and residential sorting. Using Swedish administrative microdata, we identify these responses by exploiting a temporary exemption for alternative fuel vehicles and variation in individuals’ exposure to congestion charges. We find that commuters respond by adopting exempted alternative fuel vehicles, shifting trips away from fossil fuel toward alternative fuel vehicles, and changing where they live and work. We combine the estimated responses with the framework to recover an optimal congestion charge of €9.46 per crossing in Stockholm.

Keywords: congestion pricing (search for similar items in EconPapers)
JEL-codes: R41 R48 (search for similar items in EconPapers)
Pages: 103 pages
Date: 2024-04-22
New Economics Papers: this item is included in nep-ene, nep-env, nep-inv, nep-res, nep-tre and nep-ure
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Related works:
Working Paper: Road Pricing with Green Vehicle Exemptions: Theory and Evidence (2024)
Working Paper: Road Pricing with Green Vehicle Exemptions: Theory and Evidence (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vxesta:2024_007

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