Road pricing in practiceJan Owen Jansson

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

CITY

Total running costs per year including user costs of electronic tags in Oslo and in-vehicle units in Singapore

Total charging system development and investment costs (starting year within brackets)

Total revenue per year from charges

Charging zone area

Number of charging zone entrance gantries

Number of motor vehicles entering the charging zone during charging hours per weekday

LONDON Original charging zone STOCKHOLM OSLO SINGAPORE

€151M €30M

€15M €11M

€227M (2003) €180M (2006) €31M (1991) €77M (1998)

€267M

€100M

€138M

€51M

21 km2

22 km2

40 km2

17 km2*

–

18

19

50

260 000

190 000

260 000

260 000

* Central city within the inner charging cordon

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

Diagrammatic illustration of revenue and benefits in the Stockholm trial

Two cases of inelastic and elastic demand for road space

CHARGING AREA AND PERIODCharge 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

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

Numbers in Stockholm municipality

525000 Jobs

130000 Total car commuters

35000 Company car commuters

25000 Own car commuters using the car in work so much that they are exempted from free parking benefit taxation

10000 Statements from employers to tax authorities of employee income including taxable free parking benefit in 2004

20000 Ditto in 2005

50000 - 60000 Hidden statistics (car commuters paying market prices for their parking, car commuters invited to free parking, illegal parking)

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

Källa: Texas Transportation Institute Urban mobility report 2003

CONGESTION COSTS in the three largest cities in USA

New York Los Angeles Chicago Population in metro-politan area, million

18 13 10

Rush hours per workday

6 hours 8 hours 8 hours

Total congestion cost per year, billion dollars

$ 6.8 Mdr $ 10.7 Mdr $ 6.3 Mdr

Total public transport passenger km per year, billion

30 Mdr 1) 4.5 Mdr 3.5 Mdr

1) Motsvarande siffra för Sverige totalt är 20 Mdr

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 City 54 %

Manhattan 75 %

Source: United States Census Bureau: 2004 American Community Survey

Modal split of travel to/from work in New York City, %

Public transport 54,5-subway 32-bus 14-Rail 8-Ferry (between Manhattan and Staten Island) 0,5

Car-driver 30-passenger 6

Taxi 1

Bicycle 0,5

Walk 8

New York City and surrounding suburbs

The Mayor’s plan

Half of Manhattan

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