The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm

Whitehead, Jake Elliott, Franklin, Joel, & Washington, Simon (2014) The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm. Transportation Research Part A: Policy and Practice, 70, pp. 24-40.

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As governments seek to transition to more efficient vehicle fleets, one strategy has been to incentivize ‘green’ vehicle choice by exempting some of these vehicles from road user charges. As an example, to stimulate sales of Energy-Efficient Vehicles (EEVs) in Sweden, some of these automobiles were exempted from Stockholm’s congestion tax. In this paper the effect this policy had on the demand for new, privately-owned, exempt EEVs is assessed by first estimating a model of vehicle choice and then by applying this model to simulate vehicle alternative market shares under different policy scenarios. The database used to calibrate the model includes owner-specific demographics merged with vehicle registry data for all new private vehicles registered in Stockholm County during 2008. Characteristics of individuals with a higher propensity to purchase an exempt EEV were identified. The most significant factors included intra-cordon residency (positive), distance from home to the CBD (negative), and commuting across the cordon (positive). By calculating vehicle shares from the vehicle choice model and then comparing these estimates to a simulated scenario where the congestion tax exemption was inactive, the exemption was estimated to have substantially increased the share of newly purchased, private, exempt EEVs in Stockholm by 1.8% (+/- 0.3%; 95% C.I.) to a total share of 18.8%. This amounts to an estimated 10.7% increase in private, exempt EEV purchases during 2008 i.e. 519 privately owned, exempt EEVs.

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ID Code: 78299
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Energy efficient vehicles , Congestion pricing, Incentive policies, Revealed preferences , Multinomial logit
DOI: 10.1016/j.tra.2014.09.013
ISSN: 0965-8564
Subjects: Australian and New Zealand Standard Research Classification > ENGINEERING (090000) > CIVIL ENGINEERING (090500) > Transport Engineering (090507)
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Transport Economics (140217)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2014 Elsevier Ltd.
Copyright Statement: NOTICE: this is the author’s version of a work that was accepted for publication in Transportation Research Part A: Policy and Practice. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Transportation Research Part A: Policy and Practice, Volume 70, December 2014, DOI: 10.1016/j.tra.2014.09.013
Deposited On: 02 Nov 2014 23:55
Last Modified: 24 Jul 2015 01:38

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