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The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm
KTH, School of Architecture and the Built Environment (ABE), Transport Science, Transport and Location Analysis. KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Transport Studies, CTS. The Royal Institute of Technology and Queensland University of Technology.
KTH, School of Architecture and the Built Environment (ABE), Transport Science, Transport and Location Analysis.
Queensland University of Technology.
2014 (English)In: Transportation Research Part A: Policy and Practice, ISSN 0965-8564, Vol. 70, 24-40 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
Elsevier, 2014. Vol. 70, 24-40 p.
Keyword [en]
Energy efficient vehicles, Congestion pricing, Incentive policies, Revealed preferences, Multinomial logit
National Category
Transport Systems and Logistics
Research subject
Transport Science
URN: urn:nbn:se:kth:diva-155327DOI: 10.1016/j.tra.2014.09.013ISI: 000346894300003ScopusID: 2-s2.0-84911110698OAI: diva2:760872

QC 20141119

Available from: 2014-11-05 Created: 2014-11-05 Last updated: 2016-05-09Bibliographically approved
In thesis
1. Energy Efficient Vehicle Policy: Lessons Learnt: An analysis of the effects of incentive policies on the demand, usage and pricing of energy efficient vehicles.
Open this publication in new window or tab >>Energy Efficient Vehicle Policy: Lessons Learnt: An analysis of the effects of incentive policies on the demand, usage and pricing of energy efficient vehicles.
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Encouraging the uptake of energy efficient vehicles (EEVs) is an aspiration of critical importance in a day and age in which we are confronted with the increasingly dire consequences of human behaviour on our planet, and on the planet for generations to come. The transport sector is one of the highest contributors of anthropogenic greenhouse gas emissions, whilst pollution from this sector is responsible for a large proportion of human deaths each and every year. Given the severity of these issues, it is more important than ever for policy-makers, and researchers alike, to encourage a transition within the community towards more sustainable lifestyles. Transportation is key to this change.

As a service that every human being uses, almost every day of his or her life, the transport sector presents a unique opportunity for behavioural change. Through efficient and targeted policies, consumers can be incentivised to make more sustainable transport choices and to consider the consequences of their own actions. Foremost amongst these initiatives is that of encouraging a transition towards energy efficient vehicles.

This thesis has been produced in order to shed further light on issues affecting this transition. In particular for policy-makers, this document includes a series of recommendations based on prevailing findings in the current literature, in addition to the novel and significant findings of this research effort. These include the various lessons learnt from government policies that have already been implemented in regions around the globe.

As a thesis by publication, this document consists of four research articles that investigate factors affecting the EEV market, specifically in terms of: consumer demand, vehicle usage and product pricing. A number of other demographic and economic factors have also been examined, including the role of economies-of-scale. 

Abstract [sv]

Att uppmuntra ökad användningen av energieffektiva fordon (EEVs) är en strävan av avgörande betydelse i en tid då vi konfronteras med de allt mer ödesdigra konsekvenserna av människors påverkan på vår planet, i dag och för kommande generationer. Transportsektorn är en av de sektorer som bidrar mest till utsläppen av antropogena växthusgaser. Utsläpp från transportsektorn bidrar även till ett stort antal dödsfall varje år. Med tanke på vikten av dessa frågor är det viktigare än någonsin för beslutsfattare och forskare att bidra till en samhällsövergång mot mer hållbara livsstilar. Transporter är avgörande i denna omvandling.

Eftersom transporter är en tjänst som alla människor utnyttjar i stort sett varje dag, erbjuder transportsektorn en unik möjlighet till beteendeförändringar. Genom effektiva och målinriktade åtgärder kan konsumenter ges incitament att göra mer hållbara transportval och överväga konsekvenserna av sina handlingar. Främst bland dessa initiativ är en uppmuntran till en övergång mot mer energieffektiva fordon.

Denna avhandling har tagits fram i syfte att belysa frågeställningar som berör denna övergång. För framför allt beslutsfattare innehåller avhandlingen en rad rekommendationer baserade på såväl rådande forskningsresultat från aktuell forskningslitteratur som nya resultat från denna forskningsinsats. Dessa inkluderar erfarenheter från redan implementerade politiska åtgärder från regioner runt om i världen.

Denna sammanläggningsavhandling består av fyra forskningsartiklar som undersöker faktorer som påverkar EEV-marknaden vad gäller konsumentefterfrågan, fordonsanvändning och produktprissättning. Utöver dessa har även ett antal andra demografiska och ekonomiska faktorer, inklusive betydelsen av stordriftsfördelar, undersökts. 

Place, publisher, year, edition, pages
Stockholm: Kungliga Tekniska högskolan, 2016. xxvi, 155 p.
Energy Efficient Vehicle, Incentives, Policy, Demand, Usage, Pricing
National Category
Transport Systems and Logistics
Research subject
Transport Science
urn:nbn:se:kth:diva-185933 (URN)978-91-87353-88-8 (ISBN)
Public defence
2016-05-27, Kollegiesalen, Brinellvägen 8, KTH Campus, Stockholm, 13:00 (English)

QC 20160503

Available from: 2016-05-09 Created: 2016-04-29 Last updated: 2016-05-09Bibliographically approved

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