Working papers in Transport Economics
The Gothenburg congestion charges: CBA and equity
() and Maria Börjesson
Abstract: This paper performs an ex-post cost- benefit and equity
analysis of the Gothenburg congestion charges introduced in 2013. We base
the analysis on observed effects transport model that is able to predict
the effect of the charges on travel times and traffic volumes with high
accuracy. We find that the net social benefit of the charge is positive.
However, we also show that the system is regressive. Low income citizens
pay a larger share of their income for three reasons. First, all income
classes are highly car dependent in Gothenburg, due to the relatively low
public transport share. Second, workers in the highest income class have
considerably higher access to company cars, and are therefore either exempt
from paying the charge, or can deduce the charge from their income tax.
Third, high income individuals have higher values of time. Moreover, the
revenue is spent mainly on a rail tunnel, which primarily benefits
commuters residing far out in the region.
Keywords: Congestion charges; Cost-benefit analysis; Welfare analysis; Equity; Transport policy; Decision support; (follow links to similar papers)
JEL-Codes: R41; R42; R48; (follow links to similar papers)
27 pages, August 29, 2016
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