Congestion tax in Stockholm Louise Jarn Melander Swedish Road Administration Traffic Registry

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Congestion tax in StockholmLouise Jarn
MelanderSwedish Road AdministrationTraffic
Registry
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Stockholm - a city on water
All through traffic drivespast the city over a
few bridges
Some 150 000 vehicles drive on Essingeleden
alone every day.
During rush hour the Stockholm traffic system
comes close to reaching its maximum capacity.
Image from Hitta.se
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22 August 2005 - 31 July 2006The full-scale
trial in Stockholm
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The full-scale trial in StockholmThree principal
players
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The full-scale trial in StockholmThe objectives
were achieved

• Reduce traffic to and from the city by 1015
  during rush hour
• Better level of service in Stockholm city
  traffic
• Reduction in the emissions of CO2 , NO and
  particulate matter
• City residents will experience a better city
  environment

? Reduction 20-25
? Queuing time reduction, 30-50 in the city ?
Essingeleden (city by-pass) 45
? 14 reduction in city, 2.5 in Stockholm county
? Imprecise difficult to define and measure
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Trial implementation of a congestion tax18
control points located at Stockholm city
entrances and exits

• Vehicles taxed when entering/ exiting the
  Stockholm city centre
• Tax SEK 10, 15 or 20 per passage, depending
  on the time of day
• No tax levied at night or weekends
• Some vehicles exempted, e.g. taxis, buses and
  green cars
• Maximum amount per vehicle and day SEK 60

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Automatic registration
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Paid within 14 days
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• Via direct debit. An onboard unit can be
  borrowed free of charge from the SRA.

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Trial implementation of a congestion taxA
challenging project

• Sharp political debate complicated decision-
  making process
• Controversial
• Complicated legal issues personal integrity,
  camera surveillance, procurement
• Tight time schedule
• New concept Swedish vehicle owners unused to
  having to pay to use roads
• Legislation paid within 5 (14) days, no
  invoice, one payment at a time, tax not a
  charge, onboard units
• Many stakeholders
• Swedish Road Administrations brand name

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Overall communication goal
Everyone entering Stockholm after January 3, 2006
in a vehicle registered in Sweden should be aware
of the congestion tax and of the fact that the
car owner must pay without having been prompted
to do so.
Traffic, the system, and Customer Services will
run smoothly from Day One. High penetration
level that the target group assimilates the
information is a key success factor.
Strategy intensive communication, keeping a low
profile
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Two direct communication channels with the
general public
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Joint website www.stockholmsforsoket.se (includin
g brief information in English and other
languages)
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Key success factors

• Technical system proved reliable
• Visible traffic improvements
• Communication was efficient
• Customer oriented approach
• Professional and extensive evaluation
  programme

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The full-scale trial in Stockholm Traffic
reduction
Spring of 2006 compared to spring of 2005
Source The City of Stockholm
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Referendum in 15 of the 26 municipalities in the
County of Stockholm17 September 2006

• Majority for the charges in Stockholm city
• Majority against the charges in Stockholm county
• One third of population lives in municipalites
  with no referendum

NO
YES
NO
YES
Stockholm city
Stockholm county
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Governmental proposal
April 2007 The government submits a Bill to the
Parliament proposing the reintroduction of a
congestion tax effective from 1 August 2007. The
Bill contains a proposal on how the Congestion
Tax Act should be formalised in connection with a
reintroduction.
The Swedish Road Administration gets a Government
mandate to prepare the reintroduction. June
2007 The Parliament decides that the congestion
tax shall be reintroduced starting 1 August 2007.
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Parliamentary decision - overview

• Congestion tax zone, times and amount same as
  during the trial period.
• No change in the time when the tax must be paid
  (i.e. within 14 days).
• No congestion tax during the month of July.
• Reduced surcharge, from SEK 500 to 200. Max
  surcharge for one calendar month SEK 2 000
  per vehicle.
• Exemption for taxis and mobility service
  vehicles removed.
• Exemptions for green cars limited to 2012.
• Possible to deduct congestion tax charges
  when filing income tax returns.

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Improvements in the system
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• No on-board unit
• Used only to strengthen identification for
  passages to/from Lidingö
• Improved service in Custormer Service
• Resolution at first contact
• Strengthened company service
• Modified payment system
• Simplified system for people with protected
  identity
• Easier and more efficient direct debit for
  companies and
• individuals
• Simplified handling of ownership changes
• Improved company report/statement
• Open and flexible system inviting external
  partners to offer services

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Passage statistics1 - 28 August 2006/2007
Passage statistics from 2006 not directly
comparable to 2007 due to different equipment for
collecting data

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1-28 August 2007
Approximately 20 reduction in the number of
passages at the control points compared to
August 2006 Number of passages at the control
points (2006) 31 July 300 000 (257 000) 1
August 238 000 (314 000) 21 August 344 000
(409 000)28 August 355 000 (424 000) 25 of
the passages were not liable for the tax
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Tax Income1-28 August 2007
Approx. 60 MSEK during August Average amount per
day w. 31 (wen-fri) 2,1 MSEK/day w. 32 2,5
MSEK/day w. 33 2,9 MSEK/day w. 34 3,0
MSEK/day w. 35 (mon-tue) 3,1 MSEK/day
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Economy
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The congestion charges give a net social surplus
but not the increased bus services

• The congestion charge generates a financial
  surplus of around 550 MSEK/year (net of running
  costs) (60 MEuro)
• Investment first year running costs were 1 900
  MSEK
• (200 MEuro)
• The congestion charge gives a social surplus of
  around 800 MSEK per year (84 MEuro)
• The new bus services give a net social deficit
• cost 520 MSEK/year, shorter travel times worth
  180 MSEK/year
• (appr. 55 MEuro, 20 MEuro)

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Cost-benefit analysis of the congestion charges
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What surprised the researchers?

• that the effects happened and stabilised so
  quickly
• that the congestion reduction could be seen by
  virtually everybody
• the change in attitudes
• ... that the simple charging structure worked so
  well
• the many ways to adapt to the charges

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Conclusions and summary
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Effects are large compared to other measures

• Western ring road
• 14 less traffic over the inner city bridges
• Eastern ring road
• 11 less traffic over the inner city bridges
• Zero public transport fare
• 3 less car traffic in the county

15 billions
20 billions
5 billions per year

• Doesnt make sense to compare investments and
  congestion charges against each other
• Congeston charge gives a financial surplus of 500
  mSEK/year
• Complements, not substitute, both financially and
  from a traffic management perspective