This chapter considers the debate over the feasibility of introducing road pricing and the decision by Stockholm to introduce such a system. First, factors that have stimulated new interest in road pricing are considered. The conclusions reached from earlier experiments with road pricing are examined. These are compared with the case of Stockholm where it has been possible at the local level to gain a political majority in favour of road pricing. Stockholm's `Dennis Agreement' provides for a package of public transport and road improvements for the period 1992-2005 with a system of vehicle tolls for financing road construction, operation and maintenance and for restraining traffic. The motivation for the package, the negotiation process, the final contents and the likely outcome of its implementation are discussed.
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