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The Stockholm toll causes, as predicted by theory, traffic reduction, leading to increased speeds and time gains for remaining car users. But this is only the beginning of the evaluation story. One must also estimate: implementation costs, environmental gains, imperfect secondary markets (in public transport) benefits and costs, and public finance costs and benefits. The net outcome appears to be negative, contrary to the outcome of the official estimate. For an urban toll to produce net benefits, it seems that 3 conditions are required: a relatively high degree of road congestion, a reasonably inexpensive implementation system, and a relatively low level of public transport congestion.
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