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Assessing the welfare effects of congestion charges in a real world setting

Transportation Research Part E Logistics and Transportation Review
DOI: 10.1016/j.tre.2014.07.006
  • Congestion Charges
  • Scheduling
  • Taste Heterogeneity
  • Consumer Benefit
  • Acceptability
  • Urban Transport Policy
  • Transport Modelling


Abstract The standard textbook analysis shows that drivers as a group lose from congestion charges. However, it omits taste heterogeneity, shorter travel times far out in the larger network arising from less blocking back of upstream links and the possibility for drivers to reschedule. Taking account of these factors, using a dynamic scheduling model with heterogeneous users we find that all three add significantly to the benefit of the Stockholm congestion charges and that drivers as a group benefit from these charges even without recycling of revenues. This paper also provides an update on the consumer benefits of the Stockholm charges.

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