Research challenges in modelling urban road pricing: An overview

Abstract

This article introduces the contributions of this special issue on modelling of urban road pricing and its implementation. The issue focuses on the design of urban road pricing schemes, and their spatial and temporal impacts, using quantitative transport (and land use) models. The policy implications of road pricing, including welfare and equity aspects, are studied for Paris, Brussels and Oslo using state of the art planning models. The issue is completed with a study of public acceptability and the upcoming road-pricing trial in Stockholm, and a review paper on the history of thought and future prospects of road pricing.

Distortionary company car taxation: deadweight losses through increased car ownership

“…The aggregate revenues from these taxes are considerably, so, in principle, they cannot be ignored. Arguably, fuel and user taxes may be justified as second-best instruments to finance road maintenance costs and to address congestion and other externalities associated with travel (Vickrey, 1963;Small and Bento, 2005;de Palma et al, 2006;Small and Verhoef, 2007). However, this is less plausible for purchase taxes, which apply to new car purchases.…”

Road user charging in rural areas: Upper Derwent valley, UK

“…Experience has shown that each method has advantages and disadvantages and may be affected by local characteristics. In London for example, payment is convenient, but confirmation of fee payment is labour intensive and so the system operating costs are relatively high (Palma et al, 2006). The electronic road pricing system which has been in place in Singapore since 1998 has proved to be successful in reducing congestion (Menon, 2000).…”

“…All the issues mentioned in Table 1 have been identified as crucial in the implementation of a road user charging scheme in urban areas either in literature or by past practice (Kim and Hwang, 2005;Nash et al, 2004;Palma et al, 2006). However, it is noteworthy that the majority of existing evidence refers to urban or highways schemes (see http://www.cfit.gov.uk/map/ index.htm for a summary of road user charging schemes worldwide).…”

“…This may be attributed to trip purpose diversity and visitors' value of time. Careful selection of timing and phased implementation of the road user charging scheme may result in higher acceptability and success rates (Palma et al, 2006). Furthermore, participation in decision making regarding revenue allocation may increase acceptability, although this is deemed problematic to apply in practice (Kim and Hwang, 2005).…”

Welfare Effects of Distortionary Company Car Taxation

“…Thus, we have assumed a non-distortionary tax on personal cars, although this tax may be nonoptimally set. Plausibly, taxes on car use may be justified given congestion and other externalities associated with travel (Vickrey, 1963;De Palma et al, 2006), but this is less likely for purchase taxes. Purchase taxes can possibly partially be justified due to finance of roads.…”