Vehicle choices and urban transport externalities. Are Norwegian policy makers getting it right?

https://doi.org/10.1016/j.trd.2020.102384Get rights and content
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Highlights

  • Urban transport model where heterogeneous agents choose type of car and transport use.

  • Current policies in the Oslo area lead to massive penetration of BEVs and large emission reductions.

  • However, they also lead to more congestion and reduced use of public transport.

  • Road congestion and public transportation must be priced efficiently to maximize welfare.

  • Conflict between ambitious emission reduction goals and welfare maximization.

Abstract

Norway has the world’s highest share of battery electric vehicles (BEVs) in its passenger car fleet, thanks to a set of policies that has included high purchase taxes for fossil fueled cars, and no tolls, no VAT, and free parking for BEVs. This paper uses a very stylized transport model for the greater Oslo area to give insights into the effects of different transport policies. With this model we go beyond the market penetration studies for EVs, as it brings together both car choice and transport patterns with mode choice for a set of heterogeneous representative model agents. We illustrate the possible effects of current policies on congestion, CO2 emissions and other urban transport externalities, public transport use and crowding, tax revenues and welfare. On this basis, we explore other road toll, public transport fare and tax policies that can lead to better outcomes for the Oslo transport market while still respecting the CO2-cap that reflects the goals of Norwegian policy makers.

Keywords

Electric vehicles
Climate policy
Urban transport policy
Transport modeling

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