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Road pricing in practice Jan Owen Jansson. Road pricing cost and revenue in four cities and possible cost drivers.

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Presentation on theme: "Road pricing in practice Jan Owen Jansson. Road pricing cost and revenue in four cities and possible cost drivers."— Presentation transcript:

1 Road pricing in practice Jan Owen Jansson

2 Road pricing cost and revenue in four cities and possible cost drivers

3 Automatic registration and identification at a control station along the cordon of the Stockholm congestion charging zone (Source: www.transportstyrelsen.se)

4 Diagrammatic illustration of revenue and benefits in the Stockholm trial

5 Two cases of inelastic and elastic demand for road space

6 CHARGING AREA AND PERIOD Charge collection costs including user compliance costs Revenue including penalty payments Net social benefits Original charging zone before the price rise (Evans 2007) 1) The result of the seven-month trial in 2006 put on an annual basis, Transek (2006) Ditto, SIKA (2006) 181 27 56 250 67 315 83 49 1)The report by Reg Evans, prepared for the Congestion Charging Modelling and Evaluation Team of Transport for London, “brings together various previous estimates by transport for London from a number of sources and takes account of the latest guidance from the Department for Transport on economic evaluation. It also responds to the preliminary evaluations of the congestion charging scheme prepared and published by others” (Evans 2007, page1). Total charge collection costs, revenue and net social Benefits of congestion charging in London and Stockholm, € millions per year

7 Numbers in Stockholm municipality 525000Jobs 130000Total car commuters 35000Company car commuters 25000Own car commuters using the car in work so much that they are exempted from free parking benefit taxation 10000Statements from employers to tax authorities of employee income including taxable free parking benefit in 2004 20000Ditto in 2005 50000 - 60000Hidden statistics (car commuters paying market prices for their parking, car commuters invited to free parking, illegal parking)

8 Effects on car commuting in the samples of two independent questionaires in 2006 and 2007 Because of congestion charging 2006 (The Stockholm trial) increased parking cost 2007 Stopped using car to/from work altogether Partial reduction of car use 14% 12% 11% 8% Source: Michael Stjärnekull and Jenny Widell: Förmånsbeskattning av Arbetsplatsparkering – trafikeffekter. SWECO VBB, 2008

9 Källa: Texas Transportation Institute Urban mobility report 2003 CONGESTION COSTS in the three largest cities in USA

10 Source: “Highlights of the 2001 National Household Travel Survey”, Bureau of Transportation Statistics, US Department of Transportation Proportion of total households not owning a car All USA 8% New York City54 % Manhattan75 %

11 Source: United States Census Bureau: 2004 American Community Survey Modal split of travel to/from work in New York City, % Public transport54,5 -subway32 -bus14 -Rail 8 -Ferry (between Manhattan and Staten Island) 0,5 Car -driver30 -passenger 6 Taxi 1 Bicycle 0,5 Walk 8

12 New York City and surrounding suburbs

13 The Mayor’s plan

14 Half of Manhattan

15 PARKING PRICE (P) INCLUDING CONGESTION CHARGE P = a + b T a = fixed charge corresponding to the congestion charge at present levied at the cordon of the charging zone b =parking fee per hour T = time of parking


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