Congestion Taxes and Mobile Technology - The Stockholm Case

Most large cities have severe congestion and environment problems. Many cities could benefit from implementation of congestion tax systems. The City of Stockholm has done this based on large-scale trial enabled by mobile technology. This paper analyzes how mobile technology and mobile business can have major societal impact and create value. The paper is a case study that analyzes the Stockholm congestion charging system as a trial, its evaluation, and major value creation after permanent operation for one and a half year. The system changed the traffic. Uninterrupted traffic flow with no barriers, no stops, and no roadside payment was implemented. Motor traffic decreased with 22% during the trial and during 18 months of permanent operation the decrease was 18% compared to the situation before the trial. The difference of 4% can almost exclusively be related to the decision to have no taxes for eco car after the trial.