Optimal pricing of car use in a small city: A case study of Uppsala

Studies of cities that have successfully shifted demand from cars to more sustainable modes suggest coordinated packages mutually reinforcing policy instruments are needed. Congestion charges and parking fees can be important parts such packages. This paper examines the introduction welfare-optimal congestion in a model calibrated Uppsala, small city Sweden. These effects modeled with simple transport for welfare optimization fees, charges, public provision. The results Uppsala as high EUR 2.8 peak hours 1.4 off-peak hours. A rough cost–benefit analysis shows is improving if operating costs proportional population size. In main scenarios, optimal reduce number car trips by 10% 7%, respectively. used assess when it worthwhile introduce pricing.