The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm |
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| Institution: | 1. Royal Institute of Technology – KTH, Teknikringen 72, Stockholm SE-100 44, Sweden;2. Queensland University of Technology, 2 George Street, Brisbane 4000, Australia;1. Business School, Hunan University, Changsha 410082, China;2. Center for Resource and Environmental Management, Hunan University, Changsha 410082, China;3. Department of Mechanical Engineering, University of Nevada, Las Vegas, 4505 Maryland Pkwy, Las Vegas, NV 89154, USA;1. Beijing Key Laboratory of Traffic Engineering, Beijing University of Technology, Beijing 100124, China;2. Texas Department of Transportation, 9500 N. Lake Creek Pkwy, Austin, TX 78701-2483, USA;3. Sonoma Technology, Inc., 1455 N. McDowell Blvd, Suite D, Petaluma, CA 94954, USA;4. Beijing Research Center of Urban Systems Engineering, Beijing 100035, China;1. Centre for Transport Studies, KTH Royal Institute of Technology, Teknikringen 10, SE-100 44 Stockholm, Sweden;2. Centre for Transport Studies, Sweco Transport System AB, Stockholm Traffic Analysis, Sweden;1. Queensland University of Technology, 2 George Street, Brisbane, QLD 4001, Australia;2. Centre for Strategy and Performance, University of Cambridge, United Kingdom;3. School of Civil Engineering, The University of Queensland, St. Lucia 4072, Brisbane, Australia;1. School of Management, China University of Mining and Technology, No. 1 Daxue Road, Xuzhou, Jiangsu 221116, China;2. Centre for Energy Policy, University of Technology Sydney, P.O. Box 123, Broadway, Sydney, NSW 2007, Australia |
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| Abstract: | 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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| Keywords: | Energy efficient vehicles Congestion pricing Incentive policies Revealed preferences Multinomial logit |
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