Scandinavian Working Papers in Economics
Working Papers in Economics and Statistics,
Linnaeus University, School of Business and Economics, Department of Economics and Statistics
No 7/2024: Road Pricing with Green Vehicle Exemptions: Theory and Evidence
Peter Nilsson (), Matthew Tarduno () and Sebastian Tebbe ()
Additional contact information
Peter Nilsson: Institute for International Economic Studies & Linnaeus University
Matthew Tarduno: University of Illinois at Chicago
Sebastian Tebbe: School of Global Policy and Strategy, University of California San Diego
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
Language: English
103 pages, April 22, 2024
Full text files
24-07_Road-pricing-w...icle-excemptions.pdfFull text
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