Reforming Transport Pricing in the European Union

Reforming Transport Pricing in the European Union

A Modelling Approach

Transport Economics, Management and Policy series

Edited by Bruno De Borger and Stef Proost

This timely book deals with the problem of pricing passenger and freight transportation within Europe. The contributors argue that current legislation affecting pricing and regulation is increasingly less successful in dealing with market failures and externalities such as congestion, air pollution, noise and accidents. Technological progress and greater European co-operation has brought increased scope for the reform of transport policies.

Chapter 6: Introducing spatial disaggregation and zoning in the Amsterdam model

Erik T. Verhoef, Frans Bal and Jeroen C.J.M. van den Bergh

Subjects: economics and finance, environmental economics, transport, environment, environmental economics, transport, urban and regional studies, transport

Extract

Erik T. Verhoef, Frans Bal and Jeroen C.J.M. van den Bergh 6.1 INTRODUCTION Transport is an inherently spatial phenomenon: if there were no space, there would be no demand for transport as most transport demand serves to satisfy spatial mismatches between the demand for and supply of goods and factors (for instance, peak passenger travel often serves to overcome the spatial mismatch between the supply of labour, in residential areas, and the demand for labour, in centres of economic activity). Transport policies therefore often have spatially differentiated impacts, both in terms of efficiency and in terms of equity. A closely related feature of transport is that it takes place in a network environment. Nevertheless, the TRENEN model, so far, has been largely non-spatial in nature, and has been lacking a spatial transport network representation. The present chapter reports on recent efforts to develop a spatial version of the TRENEN model for Greater Amsterdam. Section 6.2 discusses the technicalities of introducing these elements in TRENEN, and will propose a mathematical formulation. Section 6.3 reports on a linearized application to a basic network for Greater Amsterdam. Section 6.4 concludes. 6.2 A NETWORK IN TRENEN: THEORETICAL CONSIDERATIONS In this section, we will give a discussion of the first attempt we made to introduce zones and networks in the TRENEN model. A number of important choices had to be made in terms of modelling characteristics (see Verhoef and Van den Bergh, 1996). Before turning to a mathematical formulation, it is important...

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