The Politico-Economic Link between Public Transport and Road Pricing: An Ex-Ante Study of the Stockholm Road-Pricing Trial

Document Type

Journal Article

Publication Date

2006

Subject Area

ridership - mode choice, economics - pricing, economics - benefits, mode - mass transit

Keywords

Welfare economics, Value pricing (Road pricing), User benefits, Transit, Tolls, Stockholm (Sweden), Simulation, Road pricing, Referendum, Public transit, Public opinion, Political factors, Political aspects, Mode choice, Modal choice, Mass transit, Local transit, In situ tests, Highway user benefits, Field tests, Economic factors, Computer simulation, Commuters, Choice of transportation, Choice models, Case studies

Abstract

A full-scale road pricing trial will be performed in Stockholm for 7 months in 2006. The road tolls are bundled with major improvements of public transport. The trial will be followed by a local referendum. We conduct numerical simulations with a model of modal choice to estimate the welfare effects of road tolls on commuters crossing the toll zone. We find that in the absence of revenue recycling, few commuters gain from the road-toll reform. However, the fraction of gainers rises considerably when public transport is improved as planned in Stockholm.

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Transport Policy Home Page: http://www.sciencedirect.com/science/journal/0967070X

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