Inclusion of differential pricing in congestion charging scheme: The case of Stockholm and Curitiba

Among transport demand management (TDM) strategies, congestion pricing has been one of the most widely applied, but at the same time one of the most criticised. The reason is that this measure is considered regressive, exclusionary, and inequitable, since having a flat rate ignores people's ability to pay, i.e., the ability of different population groups to pay according to their income. Consequently, solving the efficiency problem could lead to an equity problem, as the fee could have a detrimental fiscal impact on low-income drivers, who often travel longer distances, have longer travel times or, depending on the context, do not have high accessibility to public transport or even the vehicle is their means of work. The objective of this thesis was to include differential pricing based on income and to determine how higher fares would impact travel demand, income, and emissions within an existing pricing system. Based on this analysis and lessons learned, propose the minimum requirements that any city should follow to evaluate and structure a pricing scheme, like the model applied in Stockholm. Incremental factors were established for 3 population groups in Stockholm, based on average income, which led to the creation of new code commands in the Allocation step (within a 4-step model) within the “LUTRANS” script. The results showed that even when the value of the fee was increased, there was no significant reduction in demand for private transport travel; however, there was an increase in revenue and a commensurate reduction in emissions. Moreover, the inclusion of incremental pricing variables must be also accompanied by changes in perception, since in one model an increase in the fare does not lead to a substantial change. On the other hand, taking advantage of the knowledge and learning gained from the Stockholm congestion pricing scheme, this thesis aims to make a series of recommendations for the city of Curitiba, Brazil, to evaluate the possibility of a similar scheme within its new Mobility Master Plan in 2025. Based on the same principles as the Nordic city, to reduce congestion and emissions from private vehicles, in addition to public transport accessibility, a congestion charging zone was constructed for the Brazilian city. The charging would be carried out in 2 phases: the first phase would cover an area of 25.51 km2, or 5% of the entire urban area, plus 50 km on 5 main roads; while the second phase would extend to 71.78 km2, or 13% of the entire urban area, plus another main road for a total of 72 km of toll roads.