Implementing interurban road pricing reforms: consensus and constraints

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Implementing interurban road pricing reforms
consensus and constraints

• Gunnar Lindberg
• VTI

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• Consensus on (marginal cost) estimates
• Is the legislation a barrier to implementation?

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Background

• The EU policy (since 1964)
• Member state policy Switzerland and Germany
• Technological development

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Development of estimates

• From TOP DOWN to BOTTOM UP

Micro data
Total cost
Econometrics
Allocation
tkm
MC
AC
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Bottom up

• Detailed databases
• Higher degree of differentiation
• Macro -gt micro policy
• Unstable
• WTP approach used
• Lower marginal cost?
• U-shaped cost curve rediscovered
• Marginal cost below average cost
• Past policies have had an effect

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Forth power rule? User Cost?
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Current legislation

• Vehicle tax minimum level (UK 1988/89)
• Fuel excise duty minimum level
• User charge maximum amount
• Tolls infrastructure cost

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User Charge
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Principles?

• Nationality charges minimum levels
• Territoriality charges maximum levels

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Minimum vehicle and fuel tax and maximum user
charge
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Consideration of the level and structure of
charges
Figure 3 Indication of marginal cost for
Pre-euro and Euro IV vehicles on Highway,
Non-urban and Urban roads compared to taxation
with minimum fuel excise duty and maximum user
charge, /100vkm.
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Is European Union legislation a barrier?

• Abolish the vehicle tax legislation
• Include km-charges (toll or user charge)
• Allow for charges on all roads
• Allow toll levels up to the total marginal cost
• A new two level fuel excise duty which include a
  Carbon-dioxide tax
• The environmental differentiation of the user
  charge is too small