Traffic charges can be difficult to explain, transport chief says

Road and congestion charges for Iceland’s capital region could be difficult to explain to motorists, Þorsteinn R. Hermannsson, chief executive of Betri samgöngur, told mbl.is.

Þorsteinn was speaking after presenting a talk on charging in the capital region at the 2026 Transport Conference, held at the Hilton Reykjavík Nordica hotel.

He said Icelanders had looked primarily to Norway when considering possible congestion and traffic charges. Road tolls introduced in Oslo in 1986 provided a basic model, he said.

“At first, the main idea was to raise revenue to finance new transport systems and infrastructure. But it later developed into charging different rates during and outside peak hours, using the system more as a way to influence transport in a positive manner,” Þorsteinn said.

Regional charging of this kind is widely used in Norway, he said. That experience helped inspire the idea of including such charges in the capital region’s transport agreement.

Stockholm, Gothenburg, London and, most recently, New York have also introduced similar charges. In New York, the charges became a major political issue and took time to implement. Progress was smoother in Norway, where people are more accustomed to road tolls.

Stockholm initially introduced its charges as a six-month trial to assess the benefits, after which residents voted on whether they should continue.

“All taxation is politically difficult, but this is perhaps especially sensitive and difficult to explain to motorists,” Þorsteinn said.

He said he expected the charges to amount to several thousand krónur per month. He also referred to the concept of “nudging”, in which charges are used to encourage changes in behaviour.

In the cities mentioned, peak-hour traffic delays have decreased as driving habits changed, he said. Even a moderate charge can therefore make a difference.

Þorsteinn compared the potential effect with the introduction of charges for plastic bags in shops. Once people had to pay for them, their behaviour changed and the bags were used more efficiently.