Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2012:13:
Estimating welfare effects of congestion charges in real world settings

Maria Börjesson () and Ida Kristoffersson

Abstract: According to the standard textbook analysis, drivers as a group will be worse off with congestion charging if not compensated by revenues. This result is confirmed by an analysis of the Stockholm congestion charging scheme using a static model with homogeneous users. However, both this static model and the standard textbook analysis omit three important factors: taste heterogeneity, effects of charges on the larger network arising from less blocking back of upstream links and the possibility for drivers to reschedule. Taking account of these factors, using a dynamic scheduling model with heterogeneous users estimated and calibrated for Stockholm, we find that drivers as a group benefit from the charging scheme in Stockholm without recycling of revenues. This paper further investigates the importance of the three mentioned factors. We find that all three factors add significantly to the benefit of the charges and that the most important is heterogeneity in the value of travel time savings. This paper also provides an update on the consumer benefits of the Stockholm charges.

Keywords: Congestion charges; Road pricing; Acceptability; Evaluation; Urban transport policy; Transport externalities; (follow links to similar papers)

JEL-Codes: C25; D61; J22; R41; R42; (follow links to similar papers)

31 pages, May 3, 2012

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

CTS2012-13.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Mats Berggren ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:ctswps:2012_013 This page was generated on 2014-12-14 19:22:08