1.2. stef proost


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1.2. stef proost

  1. 1. What is road pricing? <br />A Belgian perspective<br />Prof. Stef Proost KULeuven<br />
  2. 2. What is road pricing?<br />Charge per km that varies in function of time and place <br />Main idea is to regulate demand for road space by cars and trucks such that the available road capacity is used efficiently – now we rely on too high gasoline and diesel taxes<br />Main benefits are <br />less congestion for the same road space<br />Substitute for extending road capacity <br />Main cost: installation costs and transaction cost <br />
  3. 3. Misconceptions on road pricing policies 1<br />Only charge trucks: <br />cars (80%) will quickly take road space made available by trucks<br />Main change in car and truck use is not to switch to other modes but to alter the timing of the trips<br />Road pricing has to make transport “greener”<br />Better to use other instruments (Euro 1, 2, Etc…)<br />Important it to make sure everybody pays and that there is maximal control<br />NO it is more important tolimit transaction costs to some 10% of total revenues<br />
  4. 4. Misconceptions on road pricing policies 2<br />Revenues should be spend on extra roads or on public transport<br />No, if roads are needed in presence of road pricing, one needs to extend roads (“good investment policies”)<br />There is not necessarily a need for extra public transport investments as main change is to change timing of trip and as public transport prices are often too low <br />More important is to use revenues on good projects (lower taxes)<br />Road pricing will hurt the poor as much as the rich and this is not fair<br />The main effect on the income distribution runs via the use of the revenues, if one uses the revenues to decrease taxes for lowest income classes, this can have a favourable effect on income distribution <br />
  5. 5. Road pricing in Belgium<br />To be introduced by Flanders and Wallonia for trucks (2013?) and later cars – coordination with Brussels and Netherlands <br />Main benefit is to help dealingwith road bottlenecks:<br />Antwerp Ring: <br />correct tolling (road pricing) of all existing tunnels allows to postpone Oosterweel for another 10 to 20 years<br />Brussels Ring:<br />Road pricing of Ring (and access into Brussels) will avoid extension of the Ring<br />Discussion among regions: tolling game may lead to too high charges as each region neglects the effects on the other regions <br />In addition: no tank tourism by foreign trucks<br />
  6. 6. Sources used<br />Calthrop, E., De Borger, B., Proost, S. (2007). Externalities and partial tax reform: Does it make sense to tax road freight (but not passenger) transport?. Journal of regional science, 47(4), 721-752.<br />De Borger, B., Proost, S. (1997), Mobiliteit: De juiste prijs, Garant, Leuven,pp. 312.<br />De Borger, B. , Proost, S. (2001), Reforming transport pricing in the European Union: A modelling approach, Edward Elgar Publishing Limited, Cheltenham , pp. 424<br />De Borger, B., Proost S. (2009), De Oosterweelverbinding en het ontbrekende alternatief”, Leuvens Economisch Standpunt, 2009/127<br />http://www.econ.kuleuven.be/eng/ew/les/LES%20127.pdf<br />de Palma A., Proost S., van der Loo S. (2010), “Assessing transport investments - towards a multi-purpose tool”, Transportation Research Part B Methodological, <br />Mayeres, I., Proost, S. (2001). Marginal tax reform, externalities and income distribution. Journal of public economics, 79(2), 343-363.<br />Mayeres I., Proost S., (2004), “Een beter prijsbeleid voor de Belgische transportsector in 15 stellingen”, Leuvens Economisch Standpunt, 2004/106,<br />http://www.econ.kuleuven.be/eng/ew/les/Les106.pdf<br />Proost, S., Van der Loo S., de Palma, A., Lindsey R., (2005), A cost benefit analysis of tunnel investments and tolling alternatives in Antwerp, European Transport/ Transporti Europei n°31, 83-10. <br />Proost S., Dunkerley F., Van der Loo S.,Adler N., Bröcker J., Korzhenevych A.,(2010) ”Do the selected Trans European transport investments pass the Cost Benefit test?”, Discussion Paper CES, DPS10.02 http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps10/DPS1002.pdf<br />Van der Loo S., Proost S., (2010)-The Oosterweel junction revisited, Discussion Paper CES, <br />DPS10.07 <br />http://www.econ.kuleuven.be/ces/discussionpapers/Dps10/DPS1007.pdf<br />.<br />