Scandinavian Working Papers in Economics

Working Papers,
Swedish National Road & Transport Research Institute (VTI)

No 2007:15: Noise Charges in Road Traffic: A Pricing Schedule Based on the Marginal Cost Principle

Henrik Andersson () and Mikael Ögren ()
Additional contact information
Henrik Andersson: VTI, Postal: Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden
Mikael Ögren: VTI, Postal: Dept. of Environment and Traffic Analysis, P.O. Box 8077, SE-402 78 Gothenburg, Sweden

Abstract: One way of mitigating the negative effects of noise from road traffic is to include the external cost of noise in a road charging system. This study shows how standardized calculation methods for road traffic noise can be used together with monetary estimates of the social cost of noise exposure to calculate charges based on the social marginal cost. Using Swedish data on traffic volume and individuals exposed to road noise, together with official Swedish monetary values for noise exposure, we estimate road-noise charges for light (cars) and heavy (trucks) vehicles.

Keywords: Externalities; Marginal Cost; Noise; Road Traffic

JEL-codes: D62; Q51; R41

24 pages, First version: December 13, 2007. Revised: June 17, 2009.

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Andersson_Ogren_Road_Noise.pdf PDF-file 

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