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2014.12.12
A success story
Vehicle testing was put out to competition in 2010 when the monopoly was abolished and other players were free to establish themselves in the Swedish market. However, it was not until the Swedish state sold off parts of AB Svensk Bilprovning's operations that competition really took off. Other players started up operations at about the same time and to date there are more than a handful of players operating in the Swedish market, both locally and across larger geographical areas.
The concerns regarding deregulation were both whether the high quality could be maintained, with a number of new players on the market – and thus how the safety of road users, drivers and passengers would be affected, and how the price level and accessibility would change. It can be added that in the preparatory work for the reform, increased accessibility was considered to be the major benefit. With hindsight, it appears that the effects of deregulation have been positive*.
The quality of vehicle inspections remains high and the new private players demonstrate the same quality as before the monopoly was abolished.
The price level has moved slightly upwards, however, with increased flexibility in both opening hours and geographical availability, which contributes to welfare gains**.
Accessibility has improved significantly. From approximately 200 stations before the competition to 270 stations in 2012, which represents an increase of 42%. Now, at the beginning of November 2014, there are approximately 400 stations established on the Swedish market and a further 40 stations have announced their opening in 2014/15.
In addition, a number of other positive effects follow in the wake of a competitive market and increased accessibility. As the number of inspection stations increases, it is easier to get a time for an inspection that suits the consumer. It also contributes to reduced environmental impact as a closer inspection reduces the length of trips to the inspection station and thus traffic-related emissions.
As a result of an expanded station network in Sweden, hundreds of new jobs have been created, which has a positive effect on society at large, as well as on each individual directly affected.
Through competition, a differentiation of inspection services has been created, with different offerings to meet demand and needs. Understanding the importance of inspecting cars regularly is central to increasing the relevance of the industry – and thereby ensuring that road safety remains high.
Everyone wins in a competitive market with healthy competition: society, the environment and consumers.
* Source: Economic Debate, no. 5/2014. ”The Swedish vehicle inspection – the regulation’s justification for existence and the welfare effects of the reform.” Article author: Doctor of Technology Johan Nyström.
** Infrastrukturanyheter.se, interview with Doctor of Technology Johan Nyström, 2014-09-22
A success story regarding the reregulation of car inspections..
