Scandinavian Working Papers in Economics
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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 2017:2:
The Swedish congestion charges: ten years on: - and effects of increasing charging levels

Maria Börjesson () and Ida Kristoffersson ()

Abstract: This paper explores the effects of the Swedish congestion charges 10 years on. We find that the price elasticity of the traffic across the cordon was lower when the charging levels were increased than when they were first introduced, in Stockholm and in Gothenburg. The price elasticity was also lower when the Stockholm system was extended to include the Essinge bypass (E4/E20). The implication of these results is that adjustments in charging levels between days and seasons would have a limited effect on traffic volume. Moreover, the elasticity is substantially higher in the off-peak period than in the peak. A third finding is that the long-term elasticity is declining in Gothenburg but increasing in Stockholm. Public support is also declining in Gothenburg but increasing in Stockholm. The operating costs of the systems have declined.

Keywords: Congestion charges; Behavioural adaptation; Time-dependent cordon; Tolling system; Traffic effects; Public support; Transferability; System design; (follow links to similar papers)

JEL-Codes: R41; R42; R48; (follow links to similar papers)

29 pages, January 30, 2017

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