The increase in car use in Stockholm County has created problems which are not only confined to the increased public transport subsidy, but also to the increased highway congestion and environmental deterioration. This study investigates the combination of cordon toll and three levels of public transport subsidies. The investigation is based on an equilibrium model of modal choice and generalized costs on car and transit network. Transport policies are evaluated based on changes in transit subsidy level, toll revenue, travel-time savings, congestion and the consequence of the policy on the quality of air in Stockholm County and the inner city.
Abstract